Answer:
Present Value= $45,454.55
Explanation:
Giving the following information:
You will get a rent of $50,000 each year.
The discount rate is 10%.
To calculate the present value at time zero of the first rent, we need to use the following formula:
PV= FV/(1+i)^n
PV= 50,000/(1.10)= $45,454.55
Answer: $23,888
Explanation:
The cost today for a freshman at a public university is $19,500.
Inflation is at 7% a year and the period is 3 years from now. It is best to use a future value formula:
= Fees * ( 1 + rate) ^ number of years
= 19,500 * ( 1 + 7%)³
= 19,500 * 1.225043
= $23,888
Answer:
Revenue 2021 = $3,000,000
Revenue 2022 = $0
Explanation:
Given that,
Sold a parcel of land to a construction company = $3,000,000
book value of the land on Apache’s books = $1,200,000
In this case, revenue is identified at a point when the parcel of land is transferred to the construction company.
Therefore, full revenue from the sale of land should be recognized in the year 2021 because the transfer of land occured in 2021 and there will be no revenue reflected in the year 2022.
Revenue 2021 = $3,000,000
Revenue 2022 = $0
Answer: In a market served by a monopoly, the marginal cost is $60 and the price is $110. In a perfectly competitive market, the marginal cost is $60. If the marginal cost increased from $60 to $75, the monopoly would raise its price <u>by less than $15</u>, and the price in the perfectly competitive market would <u>increase to $75.</u>
Explanation: The monopolist attends to the market demand, therefore the choice of the monopolist is limited by the market demand. If you set a very high price, you will only sell the amount that the demand you want to buy at that price, so it will only increase by less than $ 15.
In a market of perfect competition the companies are accepting price and will produce until the price is equal to the marginal cost so the price would rise to $ 75.
Answer: $4,508
Explanation:
Companies usually give discounts with credit terms to encourage Receivables to pay faster.
In this scenario, credit terms of 2/10, n/30 were offered which means that if Carla Vista Company pays within 10 days they get a discount of 2% but if they don't they should pay the full amount in 30 days.
They paid within the discount period meaning that they qualify for the discount of 2% but they however returned goods worth $1800.
So calculating for that would be,
= (6,400 - 1800) (1 - 0.02)
= $4,508
The amount of the check is $4,508
