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IRINA_888 [86]
2 years ago
12

McClary Tires plans to save $20,000, $25,000, $27,500, and $30,000 at the end of each year for Years 1 to 4, respectively. If it

earns 3.3 percent on its savings, how much will the firm have saved at the end of Year 4
Business
2 answers:
Lunna [17]2 years ago
6 0

Answer: $107,130.78

Explanation:

Given the following ;

Cash flow(CF)

CF1 $20,000

CF2 $25,000

CF3 $27,500

CF4 $30,000

Discount rate(r) = 3.3% = 0.033

Taking the cash for each year and finding the future value using the formula

FV = CF × (1 + r)^n

WHERE

FV = future value

CF = Cashflow

r = interest rate = 0.033 for all 4 years

t = Time (0 to 3)

FV = (CF1×(1+r)^3) + (CF2×(1+r)^2) + (CF2×(1+r)^1) + CF3

FV = $20,000×(1.033)^3 + $25,000×(1.033)^2 + $27,500×1.033 + $30,000

FV = $22046.05874 + $26677.225 + $28407. 50 + $30000 = $107,130.78

fomenos2 years ago
4 0

Answer:

Total= $107,130.79

Explanation:

Giving the following information:

McClary Tires plans to save $20,000, $25,000, $27,500, and $30,000 at the end of each year for Years 1 to 4, respectively.

The discount rate is 3.3%.

To calculate the future value, we need to use the following formula for each cash flow:

FV= PV*(1+i)^n

Cf1= 20,000*1.033^3= 22,046.06

Cf2= 25,000*1.033^2= 26,677.23

Cf3= 27,500*1.033= 28,407.5

Cf4= 30,000

Total= $107,130.79

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A company must decide between scrapping or reworking units that do not pass inspection. The company has 13,000 defective units t
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Answer: $67,600 and $2600

Explanation:

Total unit = 13,000

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Full price = $8.20

Opportunity cost

= Full price - replacement unit

= 8.20 - 5.20

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= . Cost of reselling

= 13,000 × 3.00

= $39,000

1. Cost of defective units

= 13,000 × 5.20

= $67,600

2. Cost of reworked

= $5.00 × 13,000

= $65,000

3. Full price

= 13,000 × $8.20

= $106,600

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8 0
2 years ago
What is​ fraud? A. Fraud is untruthful financial reporting. B. Fraud is the misappropriation of assets. C. Fraud is the intentio
aniked [119]

Answer:

The correct answer is C. Fraud is the intentional misrepresentation of facts made for the purpose of persuading another individual to act in a way that causes injury or damage to that individual.

Explanation:

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 "A false statement knowing the truth or the concealment of a material fact for the Fraud Scheme to induce another to act at its expense."

Consequently, fraud includes any intentional or deliberate act of depriving another of property or money by cunning, deception, or other unfair acts.

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Presented below is information related to Hale Corporation: Share Capital—Ordinary, P1 par P4,300,000 Share premium—Ordinary 550
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Answer:

$4,850,000

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The computation of the total contributed capital related to the ordinary shares is shown below:

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= $4,850,000

We simply added the ordinary share capital and the share premium of ordinary shares so that the total contributed capital could arrive

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Ryker Manufacturing, inc. provided the following information for the year: The inventory account balances as of January 1 are gi
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Answer:

B. $304,060

Explanation:

We know that

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8 0
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