Answer:
$80.364.45
Explanation:
The lump sum that would make the employee indifferent can be determined by calculating the present value of the annuity
Present value is the sum of discounted cash flows
Present value can be calculated using a financial calculator
Cash flow in year 0 = $10,000
Cash flow in year 1 = $40,000
Cash flow in year 2 = $40,000
I = 9%
PV = $80,364.45
To find the PV using a financial calculator:
1. Input the cash flow values by pressing the CF button. After inputting the value, press enter and the arrow facing a downward direction.
2. after inputting all the cash flows, press the NPV button, input the value for I, press enter and the arrow facing a downward direction.
3. Press compute
Answer and Explanation:
The effect of the given transaction is shown in the attachment below. Please find the attachment
As we know that
Accounting equation is
Total assets = Total liabilities + total stockholder equity
So,
1. In the first transaction there is an increased in assets by $29,000 and decreased the assets by $29,000 plus the same is to be recorded in the operating section of the cash flow statement
2. In the second transaction, there is decreased in asset for $49,020 also the retained earning is also decreased by same amount plus there is a bad debt expense also
Answer:After-tax cost of debt capital = 4.78%
Explanation:
Cost of debt (After-tax):
= 
(1 – tax rate)
Where,
= After tax cost of debt
F = Floatation cost
= Net proceeds
Net proceeds = Bond face value ± Premium or Discount
Net proceeds: $ 1000 - $ 15 = $ 985
Flotation cost = $ 36
Tax rate 34% or 0.34
Hence, after tax cost of debt = 
(1 - 0.34)
= 4.778 % (approx.)
i.e. 4.78%
Answer:
D) have customers who operate in many different parts of the country.
Explanation:
A lockbox is basically a bank mailing address where a company's clients can send their payments to. It is similar to mailbox that receives letters, only that this one receives checks and cash. The bank is in charge of opening the lockbox and depositing the cash and checks to the company's account, and reporting the information.
