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3 years ago

What is the present value of an annuity that pays $58 per year for 13 years and an additional $1,000 with the final payment

Business

1 answer:

Doss [256]3 years ago

6 0

Answer:

$882.03

Explanation:

Interest rate used is 7.23%

Present value is the sum of discounted cash flows

Present value can be calculated using a financial calculator

Cash flow in year 1 to 12 = 58

cash flow in year 13 = 1058

I = 7.23

To find the PV using a financial calculator:

1. Input the cash flow values by pressing the CF button. After inputting the value, press enter and the arrow facing a downward direction.

2. after inputting all the cash flows, press the NPV button, input the value for I, press enter and the arrow facing a downward direction.

3. Press compute

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Stock X has a standard deviation of 25 percent per year and stock Y has a standard deviation of 16 percent per year. The correla

Zanzabum

Answer:

The portfolio standard deviation is 14.82%

Explanation:

The portfolio standard deviation would be calculated by finding out the variance of the portfolio and taking the square root of it.

Variance of the portfolio = [(1 - .50) $^{2}$ x 0.25 $^{2}$ ] + [0.50 $^{2}$ x 0.16 $^{2}$ ] + [2 x (1 - 0.50) x 0.50 x 0.25 x 0.16 x 0]

= [0.25 x 0.0625] + [0.25 x 0.0256] + [0]

= 0.015625 + 0.0064

VarPort = 0.022025

Std DevPort = √0.022025

Std DevPort = 0.1482 = 14.82 percent

3 0

3 years ago

Read 2 more answers

The total direct materials purchases of materials A and B (assuming no beginning or ending material inventory) required for July

creativ13 [48]

The total direct materials purchases of materials A and B (assuming no beginning or ending material inventory) required for July production is: 1. $1,080,000 for A; $648,000 for B

<h3>What is inventory?</h3>

Inventory, also known as stock, refers to the goods and materials that a company keeps for the purpose of resale, production, or use. Inventory management is primarily concerned with specifying the shape and placement of stocked goods.

There are four types of inventory: raw materials/components, work in progress (WIP), finished goods, and maintenance and repair (MRO).

Inventory valuation methods include FIFO (First In, First Out), LIFO (Last In, First Out), and WAC (Weighted Average Cost).

Manufacturers have three kinds of inventory. They are raw materials (that have yet to be worked on), work-in-progress (that is currently being worked on), and finished goods (which are ready for shipping).

To know more about inventory follow the link:

brainly.com/question/24868116

#SPJ4

6 0

2 years ago

When President Obama was president he had discussed raising income taxes for individuals earning over $250,000 in income. Explai

Allisa [31]

Answer:

A) Higher income taxes will cause a decrease in disposable income and this will affect personal expenditure which will cause the aggregate demand curve to shift leftwards ( decrease in price level and real GDP )

i) Change in input price

ii) Change in production cost

iii) Increase in labor supply or increase in capital stocks

Explanation:

A) Effects of higher income taxes on aggregate demand curve

i) Higher income taxes will cause a decrease in disposable income and this will affect personal expenditure which will cause the aggregate demand curve to shift leftwards ( decrease in price level and real GDP )

B) The factors that will cause the short-run aggregate supply curve to shift

a) Change in input price

b) Change in production cost

c) Increase in labor supply or increase in capital stocks

7 0

3 years ago

A Best Eastern Motel is a regional motel chain. Its rooms rent for $90 per night, on average. The variable cost is $40 a room pe

alexdok [17]

Answer:

The break even point in units is 24000 rooms per year.

Explanation:

The break even point in units is a point where enough units are sold to earn a revenue that covers the total cost of the business and there is neither a profit nor a loss to the business. The break even point in units can be calculated as follows,

Break even in units = Fixed cost / Contribution margin per unit

Where,

Contribution margin per unit = Selling price per unit - Variable cost per unit

So,

Contribution margin per unit = 90 - 40 = $50

Break even in units = 1200000 / 50 = 24000 units

3 0

3 years ago

Read 2 more answers

Suppose Hoosiers, a specialty clothing store, rents space at a local mall for one year, paying $13,800 ($1,150/month) in advance

tigry1 [53]

Answer:

Dec 31 Rent expense $3450 Dr

Prepaid Rent $3450 Cr

Oct 1 Prepaid Rent $13800 Dr

Cash $13800 Cr

Year end balances at 31 December:

Rent Expense = $3450

Prepaid Rent = $10350

Explanation:

Assumption: The year end for the business in on 31 December.

The rent is paid in advance thus it is an asset. On 31 December the adjusting entry will be made under the accrual principle to match the current period's rent expense and record it in the period to which it belongs to. Thus we will credit the rent expense for 3 months i.e. October, November and December. We will credit the asset account that is Prepaid Rent.

The prepayment of rent is creating an asset account in the title of prepaid rent. The entry would be to record the asset prepaid rent by the full amount of the rent prepaid and credit the other asset account through which the payment is being made.

The adjusted year end balance for rent expense will be the rent expense paid for this period that is $1150 * 3 = 3450

The balance in the prepaid rent account after adjusting the rent expense will be,

Prepaid rent = 13800 - 3450 = $10350

8 0

3 years ago