P1 returns goods previously purchased on credit from P2.

You have won the lottery. You will receive $5,500,000 today, and then receive 40 payments of $1,900,000. These payments will sta

san4es73 [151]

Answer:

no, you shouldn't take the offer because the present value of your prize is higher than $35 million.

Explanation:

we must first calculate the present value of the annuity in 6 months. The effective interest rate per year = (1 + 9%/365)³⁶⁵ - 1 = 1.094162145 - 1 = 0.094162145 = 9.4162145

the discount rate for every 6 months:

0.094162145 = (1 + r)² - 1

1.094162145 = (1 + r)²

√1.094162145 = √(1 + r)²

1.046022058 = 1 + r

r = 0.046022058 = 4.6%

now the present value of the annuity in 6 years = $1,900,000 x (annuity factor, 4.6%, 40 periods) = $1,900,000 x 18.14185 = $34,469,515

then we must find the present value = $34,469,515 / 1.046 = $32,953,647.23

the total value of your prize = $32,953,647.23 + $5,500,000 = $38,453,647.23

6 0

3 years ago

The average cost method of process costing differs from the FIFO method of process costing in that the average cost method: Grou

pochemuha

Answer:

c. Does not consider the degree of completion of beginning work in process inventory when computing equivalent units of production.

Explanation:

The average cost method of process costing differs from the FIFO method of process costing in that it does not consider the degree of completion of beginning work in process inventory when computing equivalent units of production.

The average method Equivalent units of Production include goods transferred out and ending inventory whereas FIFO method Equivalent units of Production include goods transferred out ,ending inventory and beginning inventories as well.

FIFO accounts only for the current period costs whereas average costs account for average cost on the whole.

7 0

3 years ago

An IAC (industrially advanced country) had a per capita income of $44,000, while a DVC (developing country) had a per capita inc

faust18 [17]

The per-capita-income gap one year later will be $43,472.

<h3>What will be the per-capita-income gap one year later?</h3>

GDP per capita is the GDP of a country divided by the population of the country. It is used as a metric to determine the standard of living of the population.

GDP per capita = GDP / population

Difference in the GDP per capita = 1.04 x (44,000 - 2,200)

1.04 x 41,800 = $43,472

To learn more about GDP per capita, please check: brainly.com/question/28018695

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5 0

2 years ago

There are costs and benefits to either method of solving a Capitalizing Problem.<br> True or False?

Diano4ka-milaya [45]

Answer:

True.

Explanation:

3 0

3 years ago

Dock Corporation makes two products from a common input. Joint processing costs up to the split-off point total $33,600 a year.

Alex Ar [27]

Answer:The minimum amount is the price that will give a profit of $3700

Explanation:

The minimum amount the company should accept for product X if it's to be sold at the split off point it's maximum amount they will earn as profit if they sales after further procession.

The total cost the company will incur if they process further it's the cost they incurred at the split off point and at further procession which equals ($16,800+$15,000) =$31,800

On sales after procession they will earn a price of $35500 which means a profit of $3700 this means the firm should sale product X at spilt off point for a price that will bring a minimum profit of $3700.

6 0

3 years ago