Find the Mean of 18, 24, 17, 21, 24, 16, 29, 18

A series of cash flows may not always necessarily be an annuity. Cash flows can also be uneven and variable in amount, but the c

skad [1K]

Answer:

1 Purple Lion Beverage Company

Year Cash flows($) Dfc (6.5%) Present Value($)

1 250,000 0.9389 234,741.78

2 37,500 0.8817 33,062.22

3 180,000 0.8278 149,012.84

4 300,000 0.7773 233,196.93

5 550,000 0.7299 401,434.46

Total Present value = 1,051,448.23 (D)

2) Annuity Payment - You recently moved to a new apartment and signed a contract to pay monthly rent to your landlord for a year.

Uneven Cash flow - SOE Corp. hires an average of 10 people every year and matches the contribution of each employee toward his or her retirement fund.

Uneven Cash flow - Franklinia Venture Capital (FVC) invested in a budding entrepreneur’s restaurant. The restaurant owner promises to pay FVC 10% of the profit each month for the next 10 years.

Annuity Payment - You have committed to deposit $600 in a fixed interest–bearing account every quarter for four years.

Explanation:

1) Dfc i.e. discount factor is calculated by - 1 / (1 + r)ⁿ

where r is the rate at 6.5%

and n is the time period - 1,2,3,4,5

for year 1 = 1 / (1 + 0.065)¹ = 1/1.065 = 0.9389

for year 2 = 1 / (1 + 0.065)² = 1/1.1342 = 0.8817

for year 3 = 1 / (1 + 0.065)³ = 1/1.2079 = 0.8278

for year 4 = 1 / (1 + 0.065)⁴ = 1/1.2865 = 0.7773

for year 5 = 1 / (1 + 0.065)⁵ = 1/1.3701 = 0.7299

while Present value is gotten by multiplying annual cash flow by the discount factor

2) a) Monthly rental payment is normally for the same amount i.e it is an annuity payment

b) The contribution of each employee would vary and not always be the same and as such it would be an uneven cash flow

c) The profit from the restaurant would not always be the same for every month and as such the payment of 10% on profit would also vary per month

d) The deposit of $600 is for a fixed amount and such is an annuity payment

Note: an annuity is a fixed payment made at equal intervals while uneven cash flows as cash flows that vary with amount paid

8 0

3 years ago

Transfer payments are Multiple Choice excluded when calculating GDP because they do not reflect current production. included whe

PolarNik [594]

Answer:

Excluded when calculating GDP because they do not reflect current production.

Explanation:

Transfer payments such as medicare, social security, medicaid, unemployment benefits, and other welfare programs are not calculated in GDP because they do not represent government purchases of goods and services, or in other words, they do not reflect goods and services currently produced and purchased.

They are instead, resources that the government takes either in the form of taxes, debt, or money supply, and allocates, or transfers, to specific recipients.

6 0

4 years ago

if, in the market for lattes shown in the figure, the government assesses a tax of $0.75 on each latte, the price the consumer p

masya89 [10]

If, in the market for lattes shown in the figure, the government assesses a tax of $0.75 on each latte, the price the consumer pays for a latte after the tax will increase from $2 to $2.25.

Living things that need to hunt, accumulate and consume their food are called purchasers. Purchasers ought to eat to gain electricity or they will die. There are 4 types of consumers: omnivores, carnivores, herbivores, and decomposers.

A client is someone who buys matters for a non-business purpose, either for themselves or for others. Companies use patron advertising campaigns to sell to purchasers. Campaign messaging makes a specialty of each acquiring capability clients and keeping modern customers.

A customer is a person who's the very last user of an object–a good or carrier. For instance, while you consume, you eat the food. You're the final vacation spot, the final person of the meals, making you a customer of food.

Learn more about consumers here brainly.com/question/25743891

#SPJ4

7 0

1 year ago

The Aggie Graphics Company was organized on January 1, 2017.The trial balance before adjustment at December 31, 2017 contained t

Ymorist [56]

Answer:

B. Supplies for $1,200

Explanation:

(A) The $2,700 balance in Supplies Expense represents supplies purchased in January. At December 31, there was $1,200 of supplies on hand.

The journal entry was incorrect, supplies account should have been debited, not supplies expense account.

Supplies expense for the year = beginning balance + purchases - ending balance of supplies account = $0 + $2,700 - $1,200 = $1,500

the adjusting journal entry should be:

Dr Supplies 1,200

Cr Supplies expense 1,200

3 0

4 years ago

A car costs $25,000 plus $675 for tax, title, and license fees. ari finances the car by putting down $2,500 in cash and taking o

zmey [24]

Ari's EMI if including tax, title and license fees in the cost of the car is $684.22.

Ari's EMI excluding tax, title and license fees from the cost of the car is $664.29.

Since there is no mention of whether Ari is paying the tax, title and license fees separately we can either assume that they are part of the total cost to buy the car; or we can assume that Ari will meet these expenses separately. We have the following data:

With Fees  Without Fees

Price of the car $25,000 $25,000

Tax Title and License fees $675 $675

Total cost of the car $25,675 $25,000

less: Down payment $2,500 $2,500

Total Loan Amount $23,175 $22,500

Annual Interest rate 4% 4%

Loan period in years 3 3

Interest rate per month (r) 0.33333 % (4%/12) 0.33333 % (4%/12)

Loan period in months (n) 36 (3×12) 36 (3×12)

Since the EMI is a constant payment in dollar terms, we can use the PV of an annuity formula to find the EMI. The Formula is:

$Present Value of Annuity = P * [\frac{1- (1+r)^{-n}}{r} ]$