Answer:
Net present value = $2063.1922
Explanation:
given data
initially costs = $40,500
cash flows = $34,500
final cash inflow = $12,000
required rate of return = 18.5 percent
solution
The cash flows is
Year 0 = $40500
Year 1 = $0
Year 2 = $0
Year 3 = $34500
Year 4 = $34500
Year 5 = $0
Year 6 = $12000
so Net present value will be express as
Net present value = -Initial cash outflow + Present value of future cash flows ...............1
Present value of future cash flows = (cash flow in year n) ÷ (1 + required rate of return)^t ..........................2
put here value we get
Present value = 
Present value = $42563.1922
Net present value= -$40500 + $42563.1922
Net present value = $2063.1922
You eat at the time you need to and they service you
The behavior of Albert is consistent with the law of demand.
The basic law of demand says that the higher the price of a commodity, the lower the quantity demanded; and the lower the price of a commodity, the higher the quantity demanded.
Albert went to his local store, hoping to buy a pair of Levi's for $30, however, when he got there, the price was lower at $18, he then decided to buy more than one because the price was lower. This is the law of demand taking place.
<span>The answer to this
question is “TRUE”. A bond is just like a loan. However, the main difference is
that with loans, the public is borrowing money from a bank or lending source.
With Bonds, the company borrows money from the public. Both have interest rates
and payment due based on the terms of agreement.</span>
Answer:
A) taxable as ordinary income to the employee and can be taken as a deduction by the employer.
Explanation:
When an employee defers to receive the compensation plan he gets the benefit of lower tax bracket each year, ultimately decreasing his tax liability.
Further when he receives the complete amount his income stands taxable. Accordingly at that time ordinary tax rates as per FICA are applicable.
On the employers part it is only deductible when the employee includes it in the income of the year, and pays tax on such compensation received.
Thus, when he receives it as compensation on retirement it is normally taxable at ordinary rates to the employee and deduction can be claimed by the employer.
