Answer:
The future value of the $200 invested yearly for 4 years at 8% is $973.32
Explanation:
The future value of an immediate annuity is given by the formula = (1+r)*[P*((1+r)^n-1)/r]
P=is the periodic payment of $200
r=rate of return=8 percent
n=number of years=4
By slotting the variables into the formula we have:
Fv=(1+0.08)*(200*((1+0.08)^4-1)/0.08)
FV=$973.32
Judging by the concept of time value of money, it is expected that the sum invested at interest would have been much more at maturity of the investment as $1 today should give a lot more than $1 in future.
Answer:
$2.80 per chair
$2.25 per table
Explanation:
If cost is assigned at a rate based on direct labor hours, the total disposal cost for chairs and tables is, respectively:
The respective disposal cost per unit is:
Answer:
EV of node 4 = 0.6×5 + 0.4×0 = 3
EV of node 5 = 0.1×5 + 0.9×0 = 0.5
EV of node 2 = (0.8×5 + 0.2×EV of node 4) - 3
EV of node 2 = (0.8×5 + 0.2×3 ) - 3
EV of node 2 = 4.6 - 3
EV of node 2 = 1.6
EV of node 3 = (0.5×5 + 0.5×EV of node 5) - 1
EV of node 3 = (0.5×5 + 0.5×0.5 ) - 1
EV of node 3 = 2.75 - 1
EV of node 3 = 1.75
EV of node 3 is higher, therefore, best attend pattern is to attend randomly.
Answer:
$200,000 and $500,000
Explanation:
The computations are shown below:
For gain recognized:
= Fair market value of the received land - corporation basis
= $500,000 - $300,000
= $200,000
For land basis received by Red Blossom corporation:
= $500,000
It records only the fair market value of the land, not the land basis for tea Company so only $500,000 would be considered
Answer:
5.52%
Explanation:
Cost of Furniture= $150,000
discount= 5.25% (120-day note)
To get the exporter's true effective annual financing cost, we have:
=(150,000/147,375) 365/120-1 = 5.52%
Therefore, the exporter's true effective annual financing cost is 5.52%