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xxMikexx [17]
2 years ago
14

You have just turned 27 and may now spend a portion of the trust fund your parents established for you. The terms of the trust f

und allow you to withdraw 50 beginning−of−the−year cash flows of​ $40,000 each. An investment firm has offered to pay you cash for all of the fund today. If the rate they use to discount the cash flows is​ 14% per​ year, what is their offer price today for your pension​ fund?
Business
1 answer:
Dafna11 [192]2 years ago
4 0

Answer:

the present value is $325,249.13

Explanation:

The computation of the offer price today is given below:

It means we have to measure the present value

Given that

RATE is 14%

NPER is 50

PMT is $40,000

FV is $0

The formula is given below:

=-PV(RATE,NPER,PMT,FV,PV,TYPE)

After applying the above formula, the present value is $325,249.13

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vladimir1956 [14]

Answer:

$7,500

Explanation:

Calculation for the Depreciation of rah second year of the asset's life

Second year depreciation=(1/8 years*2)*[($40,000)-(1/8 years*2* $40,000)]

Second year depreciation=(0.25)*[($40,000)-(0.25*$40,000)]

Second year depreciation=(0.25)*[($40,000-$10,000)]

Second year depreciation=0.25*$30,000

Second year depreciation=$7,500

Therefore the Depreciation of rah second year of the asset's life using the double-declining-balance method is: $7,500

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3 years ago
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Answer:

Foster Inc.'s assets will decrease by a net amount of $30,000.

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Explanation:

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the amount of the loan = $30,000

this means that the company's liabilities will increase by $30,000

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2 years ago
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Answer:

Detailed solution is given below:

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Which market segment should a no-frills hotel target?
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Answer:

the answer would be d. I got it right on Plato

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