Answer:
The second option which 5 years to maturity exhibited a lower price of
$523.95
Explanation:
In order to ascertain the option with lower, it is important we determine the price of each investment based on the fact the price of an investment opportunity today is the present value of its future cash flow is the maturity value of $1000 in both cases:
a.
PV=FV/(1+r)^n
PV=price of investment
FV=future value=$1000
r= 13.80%.
n=4 years
PV=$1000/(1+13.80%)^4
PV=$596.25
b.
PV=FV/(1+r)^n
PV=price of investment
FV=future value=$1000
r= 13.80%.
n=5 years
PV=$1000/(1+13.80%)^5
PV= $523.95
Answer:
c) $210
Explanation:
Revenue is recognized in the year in which it is intended to finance an activity.
The Cash collected During 2014 relating to licences will be used to finance the salaries for the inspectors during 2014 and cash collected during 2014 = $210 (30+180)
Answer: (A) Computer service expenses of production scheduling for operating departments
Explanation:
The computer services expenses of the production scheduling is one of the type of indirect expenses and also the type of service department expenses type in the operating department.
The indirect expenses is one of the type of expenses that cannot be directly contribute with the cost object or services in the business department expenses.
According to the given question, the computer service expenses is one of the allocation basis that is used as the indirect expenses in an organization or firm and the indirect expenses are categorized into two main parts that is:
1) Fixed
2) Recurring
Therefore Option (A) is correct answer.
Answer:
The below solution will guide your believe of what should be appropriate qualitative assumptions for inherent risk.
Explanation:
