Is it canidate c is bc its my guess hut jot positive with my answer
Answer:
<em>d) Slightly greater than 4 years</em>
Explanation:
<em>The portfolio's Macaulay period (MaD) is the mean maturity of its retained earnings.</em>
Fifty per cent of cash flows (in terms of PV) come after three years and another fifty per cent arrive after five years, so the MaD is 0.53 + 0.55 = 4.
We must divide the MaD by (1+ytm/2) to get Modified Duration (MoD).
<em>Then portfolio MoD is </em><u><em>4/(1 + 0.02/2) = 3.96.</em></u>
Answer and Explanation:
Debit bad debt expense for $40,000 and credit allowance for uncollectible accounts for $40,000
Answer:
Correct option is A 5.01%
Explanation:
Let irr be x%
At irr,present value of inflows=present value of outflows.
1,500,000=350,000/1.0x+475,000/1.0x^2+400,000/1.0x^3+475000/1.0x^4
Hence x=irr=5.01%(Approx).
Answer:
Accumulated Depreciation at the end of year = $16,000
Explanation:
<em>Under the straight line method of depreciation, the cost of an asset less the salvage value is spread equally over the expected useful life.</em>
<em>An equal amount is charged as annual depreciation over the life of the asset. The annual depreciation is calculated as follows:</em>
Annual depreciation:
= (cost of assets - salvage value)/ Estimated useful life
Cost - 100,000
Residual value = 20,000
Estimated useful life = 10 years
Annual depreciation = (100,000- 20,000)/10 =8,000
Annual depreciation = 8,000
Accumulated Depreciation for 2 years = Annual depreciation× number of years
= 8,000× 2 = 16,000
Accumulated Depreciation for 2 years = $16,000
