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Lemur [1.5K]
2 years ago
14

Suppose you will receive a payment of $300 one year from now. True or False: If during the year the interest rate rises, this in

creases the present value of your future payment. True False
Business
1 answer:
stepladder [879]2 years ago
5 0

Answer:

False

Explanation:

When value of money is evaluated over time, the interest rate is put into consideration.

Present value of future cash flows of a loan is an estimate of how much will be paid on a certain amount given a specific interest rate over a period of time.

So if there is a fall in interest rate it means that less of the original amount is being discounted, so present value increases.

On the other hand when interest rate increases more of original amount is discounted. So the present value reduces.

In the given scenario when you receive a payment of $300 one year from now and during the year the interest rate rises, this reduces the present value of your future payment

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They can look at the revenue receipt.

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4 0
3 years ago
Suppose that Japan is considering placing trade restrictions on imports of U.S. pharmaceuticals. It could choose either a tariff
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Answer:

1) Japanese buyers of pharmaceuticals.

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2) Japanese producers of pharmaceuticals.

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3 years ago
The decision to migrate is:
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Answer: The decision to migrate is an investment decision based on differences in earnings.

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4 0
3 years ago
John wanted to know how much he would pay this year in federal income taxes. which form would he use to determine this amount?
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In Canada it is the   Schedule 1 Federal tax which includes the non-refundable tax deduction for such things as disability tax allowance, medical expenses and other expenses and then a percentage of the total of these deductions is used as the deduction. Then on the  second page the the federal tax rate is used to calculate the tax payable from which the above deduction is subtracted to get the net payable in Federal tax.
7 0
3 years ago
Ivanhoe Company has the following cumulative taxable temporary differences: 12/31/22 12/31/21 $3200000 $2260000 The tax rate ena
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Answer:

$6,840,000

Explanation:

        12/31/21                   12/31/22    

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Ivanhoe's pretax financial income = 2022 taxable income + (temporary differences 2022 - temporary differences 2021) = $5,900,000 + ($3,200,000 - $2,260,000) = $5,900,000 + $940,000 = $6,840,000

A taxable temporary difference will affect future taxable amounts when determining a profit or loss.

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3 years ago
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