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s344n2d4d5 [400]
2 years ago
8

A perpetuity will pay $1000 per year, starting five years after the perpetuity is purchased. What is the present value (PV) of t

his perpetuity on the date that it is purchased, given that the interest rate is 4%?
Business
1 answer:
nika2105 [10]2 years ago
5 0

Answer:

$21,370.1071

Explanation:

The computation of the present value of this perpetuity is shown below:

= The present value after five years + present value on the date of purchase

where,

The present value after five years is

= ($1,000) ÷ (1.04)^5

= $821.9271

And, the present value on the date of purchase is

=  $821.9271 ÷ 4%

= $20,548.18

Hence, the present value of the perpetuity is

= $821,.9271 + $20,548.18

= $21,370.1071

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What are the managerial implications of a borderless organization?
Andrews [41]
<span>In my opinion, the managerial implications of a borderless organization could be a language barrier: complete from a different spoken language to even just day to day colloquial words or phrases. Another could be different labor laws in different countries. Another big one is the fact that different time zones could come into play and if improperly accounted for or organized with, this could really turn business upside down.</span>
7 0
2 years ago
Marquez purchased some equipment for $58,750 on August 15, 2018.
Sauron [17]

Answer:

$4,714

Explanation:

Given that,

Cost of equipment = $58,750

Equipment was subject to depreciation of $6,964 for 2018 and 2019.

Sale value of equipment = $56,500

Net book value = Cost of equipment - Depreciation

                          = $58,750 - $6,964

                          = $51,786

Capital gain = Net book value - Sale value

                    = $51,786 - $56,500

                    = $4,714

Therefore, the Marquez recognize a gain of $4,714 on the sale of the equipment.

4 0
2 years ago
You have calculated the pro forma net income for a new project to be $46,050. The incremental taxes are $22,540 and incremental
Delicious77 [7]

Answer:

The multiple choices are:

A) $46,050 B) $68,590 C) $85,190 D) $29,450 E) $62,650

Option E is the correct option,$62,650

Explanation:

The operating cash flow=net income+incremental depreciation

the operating cash flow=$46050+$16,600=$62650

The incremental taxes have already been factored into the computation of the net income, hence it is,it is expected that the depreciation would just be added to the net income in a bid to ascertain operating cash flow of the business

3 0
2 years ago
Refer to Exhibit 3-17. At a price of $16, the quantity demanded of good X is ____________ than the quantity supplied of good X,
il63 [147K]

The answer is (b) Greater,Rise ,toward

Explanation:

Refer to Exhibit 3-17. At a price of $16, the quantity demanded of good X is  <u>Greater </u>than the quantity supplied of good X, and economists would use this information to predict that the price of good X would soon <u>Rise</u> .This would push the price <u>Toward</u> the equilibrium price

The law of Demand states that the price and the supply of the product are inversely related (i.e . ceteris Paribus).

Also an increase in the number of buyers  of a particular product leads to a shift in the demand curve towards the right side

4 0
2 years ago
Harrison Industries began July with a finished-goods inventory of $48,000. The finished-goods inventory at the end of July was $
Anestetic [448]

Answer:

Option (D) is correct.

Explanation:

Given that,

Began July with a finished-goods inventory = $48,000

Finished-goods inventory at the end of July = $56,000

Cost of goods sold during the month = $125,000

Cost of goods manufactured during July:

= Ending finished goods inventory + Cost of goods sold - Beginning finished goods inventory

= $56,000 + $125,000 - $48,000

= $133,000

8 0
2 years ago
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