Consequences of using information which is not reliable

Calculate the present value of the following: a-1. Annual payment of $800 for 10 years at 5% interest. (Do not round intermediat

kipiarov [429]

Answer:

a-1 Present value = 6,177.39

a2- Present Value =6,227.79

a3- Choose the payment stream with the highest present value = a2

b1- Present Value=3,353.98

b2-Present Value=2,805.28

b3-Choose the payment stream with the highest present value = b1

Explanation:

a-1 describes an ordinary annuity whose present value is calculated as follows:

$Present value =PMT*\frac{[1-(1+i)^-^n]}{i}$

where PMT=$800; i= 5%, n= 10

$Present value =800*\frac{[1-(1+0.05)^-^1^0]}{0.05}$ = 6,177.39

a2- $Present value =600*\frac{[1-(1+0.05)^-^1^5]}{0.05}$ = 6,227.79

a3- If I were receiving these payments annually, I would prefer the payment stream with the highest present value ie a2 -Annual payment of $600 for 15 years at 5% interest.

b1- $Present value =800*\frac{[1-(1+0.20)^-^1^0]}{0.20}$ = 3,353.98

b2- $Present value =600*\frac{[1-(1+0.20)^-^1^5]}{0.20}$ =2,805.28

b3- f I were receiving these payments annually, I would prefer the payment stream with the highest present value ie b1- Annual payment of $800 for 10 years at 20% interest.

3 0

3 years ago

黑。Will someone help me come up with a name for my product?

skad [1K]

Cinnamon Scrub is a fine name

8 0

3 years ago

Jose wanted to make a graph to show his budget for the month. what type of graph would be the most appropriate to graph for jose

Andru [333]

D. Circle (Pie) graph

3 0

3 years ago

Read 2 more answers

Masse Corporation uses part G18 in one of its products.

DaniilM [7]

Answer:

Masse Corporation

1. The effect on the company's total net operating income of buying part G18 from the supplier rather than continuing to make it inside the company is an additional cost of $47,100.

2. Masse Corporation should continue to produce the part in-house. The "Make" alternative is better.

Explanation:

a) Data and Calculations:

Units of part G18 needed yearly = 17,100

Costs of production:

Direct materials $4.30

Direct labor 5.00

Variable overhead 8.00

Supervisor's salary 8.70

Total variable costs= $26 * 17,100 = $444,600

Avoidable general overhead cost = $23,100

Total avoidable costs = $467,100

Outside supplier's offered price for the part = $32 each

Total cost for the outside supply = $547,200 ($32 * 17,100)

Unavoidable fixed costs:

Depreciation of special equipment 9.30

Allocated general overhead 6.30 * 17,100 = $107,730

Unavoidable cost = $84,630 ($107,730 - $23,100)

b) The effect on the company's total net operating income of buying part G18 from the supplier rather than continuing to make it inside the company is an additional cost of $47,100 ($547,200 - $467,100 - $33,000).

4 0

3 years ago

A gardener is filling 5 planter boxes (cubical pots) with potting soil. Each box is 1.5 feet long on each side. The gardener has

Daniel [21]

Answer:

There is not enough potting soil. The gardener needs 1.875 cubic feet more potting soil.

Explanation:

In the given scenario we need to calculate the total volume of the cubic boxes.

Cubic volume = side * side * side

Cubic volume = 1.5 * 1.5 * 1.5

Cubic volume = 3.375 cubic feet

Since there are 5 planter boxes

Total volume = 3.375 * 5 = 16.875 cubic feet

The volume of soil in the 3 bags is

Volume of soil in bags = 3 * 5 cubic feet = 15 cubic feet

So there is insufficient soil to fill the planter boxes.

The difference is

Difference = 16.875 - 15

Difference = 1.875 cubic feet of soil is short

4 0

3 years ago

Consequences of using information which is not reliable​

Consequences of using information which is not reliable