Answer: 11.65%
Explanation:
The $13,241.39 is a future value amount as it is what is to be accumulated in 2 years.
Future value formula therefore applies:
Future value = Current value * ( 1 + interest rate) ^ no. of years
13,241.39 = 10,621.36 * ( 1 + i) ²
(1 + i)² = 13,241.39 / 10,621.36
(1 + i)² = 1.24667556697
1 + i = √1.24667556697
i = 1.116546267 - 1
i = 11.65%
Answer:
The depreciation expense for year 2 is $13,469
Explanation:
Computing the depreciation expense for year 1 is:
Depreciation expense = Asset cost / Number of useful life
= $110,000 / 7
= $15,714.28
Computing the depreciation expense for year 2 is as:
Asset cost for year 2 = Asset cost - Depreciation expense for year 1
$110,000 - $15,714.28
= $94,285.72
So, depreciation expense would be:
Depreciation expense = Asset cost for year 2 / Number of useful life
= $94,285.72 / 7
= $13,469
Answer and Explanation:
The description is as follows:
The annual maintenance for an equipment is $5,600 it would be classified as a normal repairs & maintenance and the same would be expensed
The remodeling of office for $22,200 would be classified as an improvement. The same would be capitalized & depreciated
The rearrangement of the shipping & receiving area for $35,200 would be classified as a rearrangement and The same would be capitalized & depreciated
The addition for $25,200 would be classified as an addition and The same would be capitalized & depreciated
Answer:
b. central tendency error
Explanation:
Central tendency error is the error in which the rater propensity could place the most items on the middle side of the rating scale. In this the employer puts the employees based on the performance i.e it varies from 4 to 7, 8 to 10, 1 to 3, etc
Therefore in the given situation, when the rate of assessors determined the rate for all workers as an average so the central tendency occurs
Hence, the correct option is b.
Answer:
The answer is: Today you could accept any lump sum ≥ $111,144.18
Explanation:
First we must calculate the present value of the three cash flows. We can do it manually or in an excel spreadsheet using the PV formula.
Using an excel spreadsheet the present value is $111,144.18
Today you could accept any lump sum ≥ $111,144.18
You can do this calculation manually also:
pv = [$36,000 / (1 + 7%)] + [$42,000 / (1 + 7%)²] + [$50,000 / (1 + 7%)³] = $111,114.18
