Answer:
Present Value= $19,652.37
Explanation:
Giving the following information:
You are the financial manager for a recreation center that has signed an option to purchase new elliptical machines for $22,500 in two years. If you have an investment opportunity that guarantees 7% interest.
PV= FV/(1+i)^n
PV= 22,500/ (1.07^2)= $19,652.37
Answer:
annual rate of interest = 9.01 %
Explanation:
given data
future value = $345,000
present value = $73,000
time period = 18 years
to find out
annual rate of interest
solution
we get here annual rate of interest that is express as
annual rate of interest =
- 1 ..................................1
put here value and we get annual rate of interest that is
annual rate of interest =
- 1
annual rate of interest = 9.01 %
Answer:
The answer is "8.37%".
Explanation:












Equity charges
By DDM.


Debt expenses
Bond1

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![k=1\\\\K =20 \times 2\\\\980 = \sum [ \frac {(5.1 \times \frac{1000}{200})}{(1 + \frac{YTM}{200})^k}] + \frac{1000}{(1 + \frac{YTM}{200})}^{20 \times 2}\\\\k=1\\\\\ YTM1 = 5.2628923903\\\\Bond2\\](https://tex.z-dn.net/?f=k%3D1%5C%5C%5C%5CK%20%3D20%20%5Ctimes%202%5C%5C%5C%5C980%20%3D%20%5Csum%20%20%5B%20%5Cfrac%20%7B%285.1%20%5Ctimes%20%5Cfrac%7B1000%7D%7B200%7D%29%7D%7B%281%20%2B%20%5Cfrac%7BYTM%7D%7B200%7D%29%5Ek%7D%5D%20%2B%20%20%20%5Cfrac%7B1000%7D%7B%281%20%2B%20%5Cfrac%7BYTM%7D%7B200%7D%29%7D%5E%7B20%20%5Ctimes%202%7D%5C%5C%5C%5Ck%3D1%5C%5C%5C%5C%5C%20YTM1%20%3D%205.2628923903%5C%5C%5C%5CBond2%5C%5C)

![Bond \ Price = \sum [ \frac{\text{(Semi Annual Coupon)}}{(1 + \frac{YTM}{2})^k}] + \frac{Par\ value}{(1 + \frac{YTM}{2})^{N \times 2}}](https://tex.z-dn.net/?f=Bond%20%5C%20Price%20%3D%20%5Csum%20%20%5B%20%5Cfrac%7B%5Ctext%7B%28Semi%20Annual%20Coupon%29%7D%7D%7B%281%20%2B%20%5Cfrac%7BYTM%7D%7B2%7D%29%5Ek%7D%5D%20%20%20%20%20%2B%20%20%20%5Cfrac%7BPar%5C%20%20value%7D%7B%281%20%2B%20%5Cfrac%7BYTM%7D%7B2%7D%29%5E%7BN%20%5Ctimes%202%7D%7D)

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The cost of the debt for the company:

Business debt cost=
after taxation cost of debt:


Answer:
C. A change from expensing certain costs to capitalizing these costs due to a change in the period benefited, should be handled as a change in accounting estimate.
Explanation:
The statement above describes or the other hand talks about expenditure and capitalization.
Therefore, expenditure is explained as either capitalized as a cost of the asset on the company’s balance sheet or it is expensed in the income statement of the incurred period.
Under IFRS, the following rules govern the categorization of the expenditure as an asset:
If the expenditure is expected to give economic benefits in future over several accounting periods.
If one can measure the cost reliably. Also, increases the assets on the company’s balance sheet.
Recorded on the cash flow statement as a cash outflow for investing.