Answer: A. Recognized $3.75 million loss on the project in 2022.
Explanation:
The project is 70% complete after 2022
i.e $99.75 million costs to date / $142.5 million estimated total costs.
The estimated gross profit is now $7.5 million
( i.e., $150 million - $142.5 million)
gross profit to date is $5.25 million. $9 million was recognized in 2021 so a $3.75 million loss is recognized in 2022.
Explanation:
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Answer:
b. 10.426%
Explanation:
Using the attached formula, convert the nominal rate to effective annual rate
<em>m</em> in the formula is the number of compounding periods per year; 12/2 = 6 in this case.
APR is the nominal rate which is 10%.
Next, plug in the numbers to the formula as shown below;
EAR = ![[1+\frac{0.10}{6}]^{6} -1](https://tex.z-dn.net/?f=%5B1%2B%5Cfrac%7B0.10%7D%7B6%7D%5D%5E%7B6%7D%20-1)
EAR = 1.10426-1
EAR = 0.10426 or 10.426% as a percentage
Hence choice B is correct.
Project Status Meetings give the project managers an oppurtunity to seek input and conduct brainstorming sessions
Answer:
The amount to be saved at the age of 65 is $1940755.74
Explanation:
To calculate the amount needed at 65 including inflation = 40000 * 1.0336 = 115931.13
Present Value of Growing Annuity = PMT / (r-g) [ 1 - {(1+g)/(1+r)}n ]
= 115931.13 / (0.045 - 0.03) [ 1 - (1.03/1.045)20 ]
= 7728742.2 * 0.2511089
= 1940755.74