Answer:
Explanation:
40% probability that bond will be priced at $950
60% probability that bond will be priced at $1050
Expected value of the bond in one year:
(Probability*Price of bond) + (Probability * Callable price bond)= (0.4*$950)+(0.60*$1010)=$986
So, expected value is $986
Answer:
c. Neglecting the Other Side’s Problems.
Explanation:
To be an effective negotiator one must understand what his interest is and what he can compromise and the limits to what can be given to the other party (that is no-deal options).
It is even more important to understand the other parties problem. This can be used to guage their interest and how it can be met.
Not considering the counterparty problem is a mistake the negotiating team have made. If the other partie's problem is not understood then there won't be an effective way of negotiating.
The present worth of this business it has been calculated is given as $302,898.
How to solve for the worth of the business
<u>In the first year</u>
Cash flow = 44000
PVF at 9.7% = 0.91158
The present value = 0.91158 * 44000
= $40106
<u>In the second year </u>
Cash flow = $61,000,
PVF at 9.7% = 0.83097
The present value = $50689.17
<u>In the third year</u>
Cash flow = $80,000
PVF at 9.7% = 0.7575
The present value = $60600
<u>In the 4th year </u>
Cash flow = $200,000
PVF at 9.7% = 0.7575
The present value = $151,500
The worth of the business today is going to be the sum of all the present values
= $151,500 + $60600 + $40106.52 + $50689.17
= $302,898
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<span>Heidi should inform them that form 13614-C has to be completed before the return can be prepared, the client will then be interviewed by whomever is preparing the return and additional questions would likely be asked, and the client would need to have a quality review done on their taxes by someone other than the person preparing the return.</span>
Answer:
d. BD 2,500
Explanation:
Accumulated Depreciation through the end of year 4 = [ Asset's cost - Salvage Value) / Estimated Useful Life] * Years Elapsed
= [(23,000 - 3,000)/8] * 4
= BD 10,000
Depreciation in Year 3 = [Asset's cost - Salvage Value - Accumulated Depreciation] / Remaining Estimated Useful Life
Depreciation in Year 3 = [23,000 - 3,000 - 10,000] / 4
Depreciation in Year 3 = 10,000 / 4
Depreciation in Year 3 = BD 2,500
