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bonufazy [111]
2 years ago
13

A manufacturer of industrial grade gas handling equipment wants to have $725,000 in an equipment replacement contingency fund 10

years from now. If the company plans to deposit a uniform amount of money each year beginning now and continuing through year 10 (total of 11 deposits), what must be the size of each deposit
Business
1 answer:
Amanda [17]2 years ago
7 0

Answer:

$41,354.98

Explanation:

Required future worth = Annual savings x FVIFA(r%, N) x (1 + r)

Required annual savings ($) = [Required future worth / FVIFA(r%, N)] / (1 + r)

= 725,000 / [FVIFA(10%, 10) * 1.1]

= 725,000 / (15.9374 * 1.1)

= 725,000 / 17.53114

= 41354.98318991235

= $41,354.98

Note: Since this is annuity due (deposit made at beginning of year), FV is divided by (1+r).

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Tan Corporation issued $600,000,000 of 7% bonds on November 1, 2015, for $644,636,000. The bonds were dated November 1, 2015, an
jonny [76]

Answer:

Interest Expense $6,446,360

Interest Payable $7,000,000

Explanation:

Interest Expense for the year =

Issued amount * Effective interest rate * \frac{Remaining months in the year}{Total months in the year}

$644,636,000 * 0.06 * 2/12 = $6,446,360

Interest Payable =

Face Value of the bond * Interest rate * \frac{Remaining months in the year}{Total months in the year}

$600,000,000 * 0.07 * 2/12 = 7,000,000

7 0
3 years ago
Keidis Industries will pay a dividend of $3.55, $4.65, and $5.85 per share for each of the next three years, respectively. In fo
german

Answer:

price = $47.82

Explanation:

Find the present value of each dividend at the required rate of return and sum them up to get the current price;

PV = FV /(1+r)^n

PV(D1) = 3.55/ (1.099^1) = 3.2302

PV(D2) = 4.65/ (1.099^2) = 3.8500

PV(D3) = 5.85 / (1.099^3) = 4.4072

PV(Price at t=4) = 53 / (1.099^4) = 36.3316

Price = 3.2302+2.9392+4.4072+36.3316

= 47.81897

Therefore, price = $47.82

8 0
3 years ago
(a) A local bookseller is considering expanding store space to increase his capacity for books.
Ksju [112]

The book seller should invest in the extra space.

<u>Explanation:</u>

As per the given data:

rent for the additional space given is $300 per year, the additional profit that will be pulled by adding on the space = $4000 per year, the current rate of interest given is = 12%

In order to calculate about the decision, the present values needs to be calculated first

The present value of the investment = (- $ 3000 plus $ 4000) by 1.121

The present value of the investment = $ 571.43

The present value of the investment is positve, hence the book seller should invest in the extra space.

8 0
3 years ago
Jamie ensures that his subordinates are closely guided and instructed throughout a project. He believes that this makes him a hi
GaryK [48]

The blind area REASON: Jamie is unaware that his behavior is viewed as controlling to others.

7 0
3 years ago
Adam and Bob are identical twins who attended grammar school through high school together. Adam got a job after high school, and
Alexxandr [17]

Answer: Option A

                                         

Explanation: In simple words, human capital refers to the economic value of an individual employee to the organisation in which he or she works as based on the skill sets and experience that he she possess.

    The economic value can be created using various tools like education, training, good health or loyalty etc. Human capital is considered as an intangible asset but is not recorded in the balance sheet of the company as it cannot be quantified.

However, it is considered as the most important asset because the effective use of other resources depends on the human capital of an organisation.

7 0
3 years ago
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