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mestny [16]
2 years ago
6

$6 million contract. The contract calls for a payment of $1.2 million today, $1.5 million one year from now, $1.5 million two ye

ars from now, and $1.8 million three years from today. What is this contract really worth if Ramon can earn 10.5 percent on his money
Business
1 answer:
Zina [86]2 years ago
3 0

Answer:

the present value is $5.12 million

Explanation:

The computation of the present value is shown below:

As we know that

Present value = Cash flows × Present value of discounting factor (rate% and duration)

= $1.2 million + $1.5 million ÷ 1.105 + $1.5 million ÷ 1.105^2 + $1.8 million ÷ 1.105^3

= $5.12 million

Hence, the present value is $5.12 million

We simply applied the above formula so that the correct value could come

And, the same is to be considered  

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A Kubota tractor acquired on January 8 at a cost of $315,000 has an estimated useful life of 10 years. Assuming that it will hav
grandymaker [24]

Answer:

A. Year 2 $31,500

Year 2 $31,500

B. Year 1 = 63,000

Book Value of Tractor $252,000

Year 2 $ 50,400

Book Value of Tractor $201,600

Explanation:

a. Calculation to Determine the depreciation for each of the first two years by the straight-line method

Year 1 = $315,000 / 10

Year 1 = $31,500

Year 2 = $315,000 / 10

Year 2= $31,500

B) Calculation to determine the depreciation for each of the first two years by the double-declining-balance method

Based on the information given we are first going to calculate the percentage of depreciation using straight line method and then double it

Percentage = $ 315,000 *10%

Percentage=$31,500

Now let depreciation the book value each year by 20% Using the double-declining-balance method method

Year 1=20% of $ 315,000

Year 1= 63,000

Book Value=$315,000 - $63,000

Book Value= $ 252,000

Year 2= 20% of 252,000

Year 2 = $ 50,400

Book Value=$ 252,000 -$50,400

Book Value= $201,600

8 0
2 years ago
"
ss7ja [257]
As seen in the chart  B has the comparative advantage in coal because 1/3 > 1/5 It means they are better at producing coal than the U.S.Have in mind examples like:
U.S. 
1 barrel of oil = 4 hrs 
1 ton of coal = 5 hrs 

B 
1 barrel of oil = 7 hrs 
1 ton of coal = 3 hrs 
After seeing this we can say that the country which has more availability has a comparative advantage over other countries.
Hope this helps
8 0
3 years ago
Read 2 more answers
What is the basic economic problem?
photoshop1234 [79]
It’s either c or d they make the most science honestly I’d say d tho
5 0
3 years ago
Identify the incorrect statement about trade barriers. They may limit a firm's ability to serve a country from locations outside
son4ous [18]

Answer:

They may put a firm at a competitive advantage to indigenous competitors

Explanation:

Trade barriers is when the government put up barriers to import. The goal of this is to increase local production of goods and services.

Trade barriers can be in the form of quotas or import taxes

Trade barriers makes the import of goods more expensive and this discourages imports

8 0
2 years ago
Calculate the payback period for the following investment: Invest ($10,000). Cash flows in Yr1: 1,000; Yr2: 3,000; Yr3: 3,000; Y
mihalych1998 [28]

Answer:

4 years

Explanation:

The computation of the payback period is shown below:

In the payback, we analyze in how many years the invested amount is recovered

In year 0 = -$10,000

In year 1 = $1,000

In year 2 = $3,000

In year 3 = $3,000

In year 4 = $3,000

In year 5 = $100,000

In year 6 = $250,000

If we sum the first 4 year cash inflows than it would be $10,000

And, the initial investment is also $10,000

So, in 4 years, the investment amount is recovered

8 0
3 years ago
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