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kumpel [21]
3 years ago
5

Ambrin Corp. expects to receive $2,000 per year for 10 years and $3,500 per year for the next 10 years. What is the present valu

e of this 20 year cash flow? Use an 11% discount rate.
A. $19,034
B. $27,870
C. $32,389
D. none of these
Business
1 answer:
sineoko [7]3 years ago
3 0

Answer:

A. $19,034

Explanation:

The computation of the present value for 20 years cash flow is shown below:

For the First 10 years

Given that

Payment for first 10 years = $2,000

Discount rate = 11%

Now the present value is

= $2000 ÷ 1.11 + $2,000 ÷ 1.11^2 +...........+ $2,000 ÷1.11^10

= 11,778.46402 ..............(1)

For the Next 10 years

Given that

Payment for next 10 years = 3,500

Discount rate = 11%

Now the present value is

= $3,500 ÷ 1.11 + $3,500 ÷ 1.11^2 +...........+ $3,500 ÷ 1.11^10

= 20,612.312

So, today present value is

= $20,612.312 ÷ 1.1110

= 7,259.339 ...........................(2)

Now

Total present value is

= $7,259.339 + $11,778.46402

= $19,034

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Answer:

the answer is: B) improve productivity by reducing turnover.

Explanation:

The efficiency weigh theory states that when employers increase their employees' wages above average market wages, they will earn higher profits due to:

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8 0
3 years ago
Classifying items on the statement of cash flows Cash flow items must be categorized into one of four categories. Identify each
valentina_108 [34]

Answer:

Explanation:

There are three types of activities in the cash flow statement which are described below:  

1. Operating activities: It includes those transactions which affect the working capital after net income. The increase in current assets and a decrease in current liabilities would be deducted whereas the decrease in current assets and an increase in current liabilities would be added.  

These changes in working capital would be adjusted. Moreover, the depreciation expense is added to the net income  and it also records the cash receipts and cash payment transactions

2. Investing activities: It records those activities which include purchase and sale of the long term assets. The purchase is an outflow of cash whereas sale is an inflow of cash

3. Financing activities: It records those activities which affect the long term liability and shareholder equity balance. The issue of shares is an inflow of cash whereas redemption and dividend is an outflow of cash.

The categorization is shown below:

a. Cash purchase of merchandise inventory - operating activity

b. Cash payment of dividend - financing activity

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d. Cash payment for income taxes - operating activity

e. Purchase of equipment in exchange for notes payable - non cash activity

f. Cash receipt from the sale of land - investing activity

g. Cash received from borrowing money  - financing activity

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i. Cash receipt from the issuance of common stock - financing activity

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5 0
3 years ago
Read the passage. Then answer the question that follows. Nikia designs and produces board games that she sells online. She forme
liberstina [14]

I would say the C. is the correct answer, because if the 3D Printer prints the pieces faster, the games are sold more frequently. I hope this helps, and that it makes sense to you.

6 0
3 years ago
In the securitization process, mortgages are pooled together and cash flows are packaged into securities to be sold in the secon
Viefleur [7K]

Answer:

conduits

Explanation:

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investment in mortgage-backed assets means the investor is lending out his money to people that intend to get a home.

A mortgage-backed security can be bought directly from banks or through brokers. These brokers are also called conduits.

Cheers

7 0
3 years ago
John Williams, manager of Phoenix Entertainment, wants to compute the variable overhead efficiency variance for the year. He has
Georgia [21]

Answer:

2nd option is correct.

Explanation:

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2nd option is correct.

Variance is unfavorable because actual quantity used to produce is more than budgeted quantity allowed at that level of production.

6 0
3 years ago
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