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Lady_Fox [76]
2 years ago
11

You will receive 27 annual payments of $22,500. The first payment will be received 7 years from today and the interest rate is 5

.1 percent. What is the value of the payments today?
Business
1 answer:
bixtya [17]2 years ago
6 0

Answer:

PV= $230,148.09

Explanation:

Giving the following information:

You will receive 27 annual payments of $22,500. The first payment will be received 7 years from today and the interest rate is 5.1 percent.

First, we need to calculate the final value of the payments.  We need to use the following formula:

FV= {A*[(1+i)^n-1]}/i

A= annual pay= 22,500

n= 27

i= 0.051

FV= {22,500*[(1.051^27)-1]}/ 0.051

FV= $1,248,819.52

Now, we can calculate the present value:

PV= FV/(1+i)^n

PV= 1,248,819.52/ (1.051^34)

PV= $230,148.09

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Joshua Industries is considering a new project with cash inflows of $478,000 for the indefinite future. Cash costs are 68 percen
Alex

Answer:

$93,940.85

Explanation:

Adjusted present value is the sum of net present value of after tax cash flow and net present value of tax shield.

First compute after tax cash flow:

Cash inflow = $478,000

Cash cost = 68% of $478,000 = $325,040

Pre-tax profit = 478,000 - 325,040 = $152,960

Tax = 34 %

After tax cash flow = 152,960 (1 - 0.34) = $100,953.60

Net present value of after tax cash flow = \frac{After\ tax\ cash\ flow }{Cost\ of\ equity} -Intial\ investment\\

= \frac{100,953.60}{0.142} - 685,000

= $25,940.85

Present value of tax shield = Amount of debt × tax rate

= 200,000 × 0.34

= $68,000

Adjusted present value = 28,940.85 + 68,000

= $93,940.85

4 0
2 years ago
If the marginal cost of producing the tenth unit of output is $3, and if the average total cost of producing the tenth unit of o
Dahasolnce [82]

Answer:

True

Explanation:

Since marginal cost is above the average total cost so average total cost is rising.

8 0
2 years ago
From the beginning of 2000 until its peak in 2012, Apple’s stock price rose from $27.97 to $702.10, an increase of 25 times. Yet
Tcecarenko [31]

Answer:

Steve Jobs coming back, Innovations, and Tim Cook taking over as COO

Explanation:

The fluctuations in stock prices of a company are due to improved performance of the company in meeting it's objectives and perception that the business will do better in the future.

In the given scenario there was an initial increase in Apple’s stock price from $27.97 to $702.10, an increase of 25 times.

This can be attributed to the return of Steve Jobs as the CEO of Apple. There was a confidence boost by his coming back. Also there were various innovations like: iPhone, iMac, iPod, and iTunes. These improved the performance and by extension share price of Apple.

However when Tim Cook took over as COO he reduced production by half resulting in stock price decrease by 37% from its peak in September 2012 until the end of March 2013, from $702.10 to $442.66.

3 0
2 years ago
On March 25, Osgood Company sold merchandise on account, $3,200 terms n/30. The applicable sales tax percentage is 6%. Record th
Vlad1618 [11]

Answer:

the transaction record as given below

Explanation:

given data

sold merchandise =  $3,200

terms n/30

sales tax percentage = 6%

solution

as here with 6% sale tax payable is

sale tax payable = 6% of 3,200 = $192

and account Receivable will be $192 + $3200 = $3392

so

we get here the transaction record that is as

date         title                                    Dr.              Cr.

25-Mar    Accounts Receivable        3392    

               Sale                                                      3200

               Sales tax payable                                192

25-Mar    Cost of goods sold      

               Inventory                              

3 0
2 years ago
Based on the lesson and your research, how would you fund a four-year college degree? In two to three sentences, explain your ch
LekaFEV [45]
You can fund a four-year college degree by either of the following:

1. Loans
Loans can be acquired through federal aid or private means. They must be paid back with interest when the student has graduated. They are guaranteed by the federal government.

2. Scholarships
Scholarships depends on criterias from who will sponsor it. These criterias may include financial need, merits, field of study, etc. There are those who can help students look for a scholarship that fit them like counselors, the government or its agency, community organizations, etc.

3. Work-study programs
They operate with the financial aid office of the school. However, they require the student's determination and financial needs. 
9 0
2 years ago
Read 3 more answers
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