Answers
Answer:
$338,805.68
Explanation:
The computation of the amount of annual level of expenditure is shown below
Here we use the PMT formula
Given that
NPER = 15
RATE = 8%
FV = $0
PV = $2,900,000
The formula is shown below:
= PMT(RATE, NPER,-PV,FV,TYPE)
The present value comes in negative
After applying the above formula, the amount of annual level of expenditure is $338,805.68
Related Questions
Marsh is deciding whether or not to open a lemonade stand. She expects to sell 20 cups of lemonade for $1 per cup. She already made a sign that cost her $10 and will have $15 worth of additional costs for cups and lemonade mix if she decides to open the stand.
If Marah decides to open the lemonade stand, how much profit will she earn?
Answers
Answer:
none
Explanation:
If Marsh expects to sell 20 cups of lemonade for $1 per cup then that is a total of $20. Unfortunately, Marsh has already spent $10 and is expecting to spend another $15 which would mean that his total costs would be $25 (10 + 15). This is a whole $5 more than what he is expecting to make from selling the 20 cups of lemonade. Therefore, if he does open the lemonade stand he will not earn any profit and will be at a $5 loss.
Answer:
$5 profit
Explanation:
$10 cost to make the sign is sunk cost and should be ignore when making the decision! She should open the lemonade stand.
Gerald owns 465 shares of stock, with a basis of $2,831. The stock split 3 for 1. Gerald now owns ______ shares at ______ per share.
Answers
Answer:
Gerald now owns 1,395 shares at $2.03 per share.
Explanation:
Gerald originally owned 465 stocks, but after the stock split he will own 465 x 3 = 1,395 stocks. His basis though will not change, it will be the same $2,831. So the basis per share = $2,831 / 1,395 stocks = $2.029 ≈ $2.03 per stock. Stock splits do not alter the basis of a portfolio, it only increases the total number of stocks.
The amount of shares Gerald now owns is 1,395 shares and the price per share is $2.03.
When there is a stock split, the number of stock outstanding is increased by a constant number. When there is a stock split 3 for 1, for every 1 stock a shareholder owns, the shareholder now owns 3 stocks.
Number of shares owned = 465 x 3 = 1,395 shares
When there is a stock split, the value of the stock declines per share.
Value per share = $2831 / 1395 = $2.03
To learn more about stock splits, please check: https://brainly.com/question/25513890
Whispering Winds Corp. has these accounts at December 31: Common Stock, $12 par, 6,100 shares issued, $73,200; Paid-in Capital in Excess of Par Value $19,600; Retained Earnings $44,600; and Treasury Stock, 560 shares, $12,320.
Required:
Prepare the stockholders’ equity section of the balance sheet.
Answers
Answer:
The answer is $125,080.
Explanation:
Common stock = $73,200($12 par x 6,100 shares)
Paid-in Capital = $19,600
Retained Earnings = $44,600;
Treasury Stock = $12,320( for 560 shares).
The stockholders’ equity is therefore :
$73,200 + $19,600 + $44,600 - $12,320
= $125,080.
NOTE: Treasury stock was subtracted from the rest because treasury stocks reduce the total number of stocks outstanding
The amount of money a person pays each month to secure insurance
coverage is the ____.
O A. premium
O B. collateral
O C. policy
O D. deductible
Answers
Answer= Premium
Which of the following is most likely to be the most challenging part of this first step of absolute valuation process?
a. Making the assumptions upon which to project future performance
b. Locating the required historic data within company releases and earnings Statements
c. Dividing the market cap by the number of shares
d. Conducting the necessary mathematics
Answers
Answer:
a) making the assumptions upon which to project future performance
Explanation:
Absolute value can be regarded as as a method that utilize discounted cash flow analysis in knowing the worth of a organization financially. It should be noted that making the assumptions upon which to project future performance is most likely to be the most challenging part of this first step of absolute valuation process.
PLEASE HELP!
Agnes and Sons had ordered 11,500 machine parts. The cost of the parts was $48,000.00. Find the cost
of each part to the nearest whole cent?
Answers
Answer:
$4.2 per part
Explanation:
11,500 machine parts were ordered
Total cost of the parts was $48,000.00
the cost per part will be total cost divided by the number of parts
i.e., cost per part = total costs/ number of parts
Cost per part =$48,000 / 11,500
Cost per part =$4.17
=$4.2 per part
If Jane Key invests $18,527.74 now and she will receive $40,000 at the end of 10 years, what annual rate of interest will she be earning on her investment?
A. 8.5%
B. 10%
C. 8%
D. 9%
Answers
Answer:
C. 8%
Explanation:
Future value factor:
= $18527.74 / $40000
= 0.4631935
At 8% for 10 years the future value factor is 0.4631935
Note: Proof of calculation is attached below as picture
The independent variable in the Situational school of leadership is: a. Maturity of the followers b. Clarity of the task c. Time horizon d. Organizational support for the leader e. b), c), and d) Only
Answers
Answer:
Maturity of the followers, clarity of the task, organizational support of the leader
Explanation:
Situational leadership takes into account the situational factors that are attached to the task of the leader. This type of leadership style does not take a one size fits all approach or a universal style of leadership, and therefore pays attention to factors such as relationship with members of the team, type of task etc. The above are factors that determine leadership style. Time horizon is not one of them. Another factor not included in the options is the relationship of the team or group members with the leader.
Assume the following information about the market and RoseApple's stock.
RoseApple's beta = 1.50, the risk-free rate is 2%, the market risk premium is 8.0%. Using the SML, what is the expected return for RoseApple's stock?
Answers
Answer:
the expected return for RoseApple's stock is 14%
Explanation:
The computation of the expected rate of return is shown below:
As we know that
Expected return = Risk-free rate of return + Beta × market risk premium
= 2% + 1.50 × 8%
= 2% + 12%
= 14%
Hence, the expected return for RoseApple's stock is 14%
Therefore the above formula is applied to determine the expected return
rialto company collected $5,000 on account. what impact will this transaction have on the firm's current ratio
Answers
Answer:
There would be NO IMPACT
Explanation:
From the question, we are informed about, rialto company collected $5,000 on account. In this case there will be no impact of this transaction on the firm's current ratio. The collection on account can be regarded as exchange of asset transaction, any increase change in current asset account cash, then there will be decreases in Accounts Receivable , the ration of current asset to current liabilities gives the current ratio, there is no impact of transaction on the current ratio, since the transaction doesn't affect both the
current asset to current liabilities
Under final regulations, a self-employed taxpayer may elect to apply a de minimis safe harbor to amounts he or she paid to acquire or produce tangible property to the extent such amounts are deducted by him or her for financial accounting purposes or in keeping his or her books and records. For taxable years beginning on or after January 1, 2016, the Internal Revenue Service increased the de minimis safe harbor threshold to what amount per invoice or item for self-employed taxpayers without applicable financial statements?
a. $500
b. $1,000
c. $2,000
d. $2,500
Answers
Answer:
d. $2,500
Explanation:
In the case of minimis safe harbor threshold limit amount per invoice or item for a taxpayers who are self employed without apply the finanical statement is the $2,500
Therefore as per the given statement, the correct option is D
And, the same is relevant
Also, the rest of the options are incorrect
The IBM Corporation invented the ________ benchmark to help with the design of its mainframe systems.
Answers
Answer:
Performance
Explanation:
IBM is widely known as the leader in the computer manufacturing business. Hence, they establish performance benchmarking to assess and analyze how the firm's product and services are operating in terms of sales revenue, profit generation, and customer happiness. This performance benchmarking is conducted to evaluate both internal and external performance.
Therefore, The IBM Corporation invented the PERFORMANCE benchmark to help with the design of its mainframe systems.
Given the following information, analyze XYZ Company's liquidity. Year 2013 Total quick assets $30,000 Total current assets $40,000Total current liabilities $22,000 Acid-test ratio 1.36 Current ratio 1.82 Industry acid-test ratio 70 Industry current ratio 1.65 A. They are more liquid than others in their industry. B. They are less liquid than others in their industry. C. They have sufficient quick assets to pay off short-term debt if needed. D. They don't have sufficient liquid assets to pay off short-term debt if needed.
Answers
Answer:
A. They are more liquid than others in their industry. C. They have sufficient quick assets to pay off short-term debt if needed.Explanation:
The Acid-test and current ratios are used to measure the liquidity of a company with higher figures meaning more liquidity. XYZ Company has a both a higher acid-test and current ratio so they are more liquid than others in their industry.
The Acid-test and current ratio also enable one to find out if a company is able to pay off its current obligations/ liabilities using current assets. With the acid-test ratio being above one, XYZ is able to pay off short-term debt using quick assets.
Jim buys a 10-year bond with par value of 10,000 and 8% semi-annual coupons. The redemption value of the bond at the end of 10 years is 10,500. Calculate the purchase price to yield 6% convertible quarterly.a. 11,700.b. 14,100.c. 14,600.d. 15,400.e. 17,700.
Answers
Answer:
a. 11,700
Explanation:
The purchase price of the Bond is its Present Value or PV. The fact the Bond is convertible quarterly does not affect the normal calculations of this Present Value.
Calculation of Bond Purchase Price
N = 10 × 2 = 20
FV = 10,500
PMT = ($10,000 × 8%) ÷ 2 = $400
I = 6 %
P/YR = 2
PV = ?
Using a financial calculator to input the values as shown above the PV would be $11,765
The purchase price is thus closest to $11,700
The cost of a high-quality 250-horsepower compressor was $13,500 when recently purchased. What would a 608-horsepower compressor be expected to cost
Answers
Answer:
Cost of 608 hp compressor = $32,832
Explanation:
Given:
Cost of 250 hp compressor = $13,500
Find:
Cost of 608 hp compressor
Computation:
Cost of 608 hp compressor = Cost of 250 hp compressor x [608 / 250]
Cost of 608 hp compressor = $13,500 x [608 / 250]
Cost of 608 hp compressor = $32,832
Which inventory costing method generally results in the most recent costs being assigned to ending inventory?
a. LIFO.
b. FIFO.
c. Weighted average cost.
d. Simple average cost.
e. Specific identification.
Answers
Answer:
B. FIFO.
Explanation:
This is known in full as First in, First out which has a general ideology that purchases that are been made first are those to be sold also first too.bTherefore it is seen to be the discussed inventory when it comes to recent costing been assigned to ending inventories. They are been assumed to remain inventory consists of items purchased last. In other words, its alternate LIFO is an accounting method in which assets purchased or acquired last are disposed of first. Also it is seen in an inflationary market, lower, older costs are assigned to the cost of goods sold under the FIFO method.
Desmond's 4-unit complex brings in an average of $1,250 per unit per month. The property is valued at $625,000. What is the gross rent multiplier (GRM) for this property
Answers
According to modern growth theory, the key to economic growth is Group of answer choices a large pool of unskilled labor. skilled labor. institutions. paved roads. modern buildings.
Answers
Answer:
Skilled labor
Explanation:
As per the modern economic growth theory, the economic growth would be possible via expenditure done on research & development and have the knowledge regarding innovations so for this the skilled labor is required that helps in research & development and so for innovations
So as per the given statement, the skilled labor is the correct option
Hence, the same is to be considered
Despite Africa's young, urbanizing population, abundant natural resources, and growing middle class, obstacles that have confronted would-be investors in Africa for years - widespread corruption, a lack of infrastructure and ready talent, and an underdeveloped consumer market - continue to stunt economic growth there. In formulating international strategy for a multinational firm, we would regard these obstacles as
Answers
Answer:
Opportunities
Explanation:
In the case when the international strategy is to be formulated for a firm i.e. multinational so the obstacles like infrastructure lacking, ready talent, non-developed consumer market etc would be classified as an opportunities as due to this there is a stunt in a economic growth.
So the given situation represent the opportunities and hence the same is to be considered
Which one of the following is not a demographic base for segmentation? A. EducationB. OccupationC. ReligionD. Personality
Answers
Answer: Personality
Explanation:
Demographic segmentation is when a particular market is being grouped into segments based on a trait that's common to them such as income, age, gender, education, family status, cultural background, ethnicity, and occupation.
It should be noted that from the options given, option D which is personality is not part of the demographic base for segmentation.
When it comes to segmentation by demographic factors, it is not possible to use D. Personality
Demographic factors:
Are used to reference people of a particular group in the population.Include things like gender, age, race, and marital status.A person's personality is unique and so cannot be used to reference a group of people so it is not considered to be a demographic factor like income status or educational level.
In conclusion, option D is correct.
Find out more about demographic segmentation at https://brainly.com/question/6049145.
A property and casualty insurance company categorizes its policyholders into three groups: low risk, medium risk, or high risk. 25% of the policyholders are low risk and 30% are high risk. The high risk policyholders are three times as likely as medium risk policyholders to file an insurance claim and the medium risk policyholders are twice as likely as the low risk policyholders to file an insurance claim. Determine the proportion of the insurance claims filed by medium risk policyholders.
Answers
Answer:
The correct approach is "0.39".
Explanation:
The given values are:
Low risk percentage,
= 25%
i.e.,
= 0.25
High risk percentage,
= 30%
i.e.,
= 0.30
Now,
The medium risk percentage will be:
= [tex]1-(low+high)[/tex]
= [tex]1-(0.25+0.30)[/tex]
= [tex]1-0.55[/tex]
= [tex]0.45[/tex]
Should let probability of either an assertion by a low-risk policyholder be p,
Percentage of medium risk policyholder will be,
= 2p
Percentage of high risk policyholder will be,
= 3×2p
= 6p
By applying Bayes' theorem, we get
⇒ [tex]P(A | B) = \frac{P(A \$ B)}{P(B)}[/tex]
⇒ [tex]=\frac{(0.25p + 0.45\times 2p)}{(0.25p + 0.45\times 2p + 0.30\times 6p)}[/tex]
⇒ [tex]=\frac{1.15}{2.95}[/tex]
⇒ [tex]=0.39[/tex]
Answer:
the approach is "0.39"
Explanation:
Adama Company incurred the following costs.Indicate to which account Adama would debit each of the costs.1. Sales tax on factory machinery purchased$ 5,000 Select the account to be debitedEquipmentPrepaid InsuranceBuildingLandLand Improvements2. Painting of and lettering on truck immediately upon purchase700 Select the account to be debitedLandPrepaid InsuranceEquipmentBuildingLand Improvements3. Installation and testing of factory machinery2,000 Select the account to be debitedPrepaid InsuranceBuildingLandEquipmentLand Improvements4. Real estate broker’s commission on land purchased3,500 Select the account to be debitedLandLand ImprovementsPrepaid InsuranceBuildingEquipment5. Insurance premium paid for first year’s insurance on new truck880 Select the account to be debitedLandEquipmentPrepaid InsuranceLand ImprovementsBuilding6. Cost of landscaping on property purchased7,200 Select the account to be debitedEquipmentLand ImprovementsLandBuildingPrepaid Insurance7. Cost of paving parking lot for new building constructed17,900 Select the account to be debitedLand ImprovementsLandBuildingPrepaid InsuranceEquipment8. Cost of clearing, draining, and filling land13,300 Select the account to be debitedPrepaid InsuranceLandLand ImprovementsBuildingEquipment9. Architect’s fees on self-constructed building10,000
Answers
Answer:
1. Sales tax on factory machinery purchased - $5,000
Account to be debited: Equipment
2. Painting of and lettering on truck immediately upon purchase - $700
Account to be debited: Equipment
3. Installation and testing of factory machinery - $2,000
Account to be debited: Equipment
4. Real estate broker’s commission on land purchased - $3,500
Account to be debited: Land
5. Insurance premium paid for first year’s insurance on new truck - $880
Account to be debited: Prepaid Insurance
6. Cost of landscaping on property purchased - $7,200
Account to be debited: Land Improvements
7. Cost of paving parking lot for new building constructed - $17,900
Account to be debited: Land Improvements
8. Cost of clearing, draining, and filling land - $13,300
Account to be debited: Land
9. Architect’s fees on self-constructed building - $10,000
Account to be debited: Buildings
The free-rider problem; A. Arise from the ability to exclude an individual from the benefits of someone else's purchase B. Is a government failure resulting from consumption of private goods. C. Reflects the inability to exclude an Individual from the benefits of someone else's purchase. D. Means that the market mechanism is the most efficlent way to produce public goods.
Answers
Answer: C. Reflects the inability to exclude an Individual from the benefits of someone else's purchase.
Explanation:
The Free-rider problem is a concept in economics that describes the fact that sometimes people benefit from goods and services that they wither did not pay for or underpaid for.
There has been a failure to exclude those individuals who are free-riding from the benefits of goods and services that other people are paying for. A simple example of the free-rider phenomenon is using Wikipedia. Most of those who use it do not contribute or pay for its upkeep in any way yet reap the benefits of its extensive information.
If the nominal interest rate is 6 percent and the rate of inflation is 10 percent, then the real interest rate is:______
Answers
Answer:
The real interest rate = - 4 percent
Explanation:
Given:
Nominal interest rate = 6 percent
Rate of inflation = 10 percent
Find:
The real interest rate
Computation:
The real interest rate = Nominal interest rate - Rate of inflation
The real interest rate = 6 - 10
The real interest rate = - 4 percent
You have been asked by the president of your company to evaluate the proposed acquisition of a new special-purpose truck for $60,000. The truck falls into the MACRS 3-year class, and it will be sold after three years for $19,800. Use of the truck will require an increase in NWC (spare parts inventory) of $1,800. The truck will have no effect on revenues, but it is expected to save the firm $20,400 per year in before-tax operating costs, mainly labor. The firm’s marginal tax rate is 34 percent. What will the cash flows for this project be? (Negative amounts should be indicated by a minus sign. Round your answers to 2 decimal places.)
Year 0 1 2 3
FCF $ $ $ $
Answers
Answer:
NCF year 0 = -$61,800
NCF year 1 = $20,264
NCF year 2 = $22,613.40
NCF year 3 = $32,782.60
Explanation:
initial outlay = $60,000 + $1,800 = $61,800
depreciation expense per year:
year 1 = $60,000 x 33.33% = $20,000
year 2 = $60,000 x 44.85% = $26,910
year 3 = $60,000 x 14.81% = $8,886 residual value = $4,204
after tax salvage value = $19,800 - [($19,800 - $4,204) x 34%] = $14,497.36
cost savings per year = $20,400
net cash flow year 1 = [($20,400 - $20,000) x (1 - 34%)] + $20,000 = $20,264
net cash flow year 2 = [($20,400 - $26,910) x (1 - 34%)] + $26,910 = $22,613.40
net cash flow year 3 = [($20,400 - $8,886) x (1 - 34%)] + $8,886 + $14,497.36 + $1,800 = $32,782.60
A company reports total assets of $920,000 and stockholders' equity of $540,000. Calculate the debt ratio. (Round your answer to two decimal places.)
Answers
Answer: 41.3%
Explanation:
From the question,
Total assets = $920,000
Stockholders' equity = $540,000
Debt will be the difference between the assets and the equity. This will be:
= $920,000 - $540,000
= $380,000
Debt ratio = Debt / Total assets
= $380,000 / $920,000
= 0.413
= 41.3%
Zhang Company reported Cost of goods sold of $855,000, beginning Inventory of $41,200 and ending Inventory of $48,300. The average Inventory amount is:
Answers
Answer:
the avergae inventory amount is $44,750
Explanation:
The computation of the average inventory would be
= (Opening inventory + beginning inventory) ÷ 2
= ($41,200 + $48,300) ÷ 2
= $89,500 ÷ 2
= $44,750
hence, the avergae inventory amount is $44,750
We simply applied the above formula so that the correct value could come
And, the same is to be considered
The other values would be ignored
Corporate spending on equipment, structures and intellectual property, decreased an annualized 2.2 percent after a 3.4 percent fall in the first quarter. Outlays for equipment dropped for the fourth time in the past five quarters. Spending on structures -- everything from factories to shops to oil rigs -- have increased in just one quarter since the end of 2014. Inventories and the trade gap are two of the most volatile components in GDP calculations. To get a better sense of demand in the U.S., economists look at final sales to domestic purchasers, or GDP excluding inventories and net exports. That measure increased 2.1 percent last quarter after a 1.2 percent gain. Also holding back economic growth in the second quarter was a decrease in residential investment, which fell at a 6.1 percent pace. That was the most since the third quarter of 2010 and marked the first decrease in two years. Government spending also shrank last quarter, declining 0.9 percent, the most in more than two years as outlays for the military fell. States and municipalities also cut back. The GDP report also showed price pressures remain limited. A measure of inflation, which is tied to consumer spending and strips out food and energy costs, climbed at a 1.7 percent annualized pace compared with 2.1 percent in the prior quarter. Fed policy makers, who left interest rates unchanged this week, said risks to the U.S. outlook have "diminished" and the labor market is getting tighter, suggesting conditions are turning more favorable for an increase in borrowing costs. U.S. Economy Grew Less-Than-Forecast 1.2% in Second QuarterSho ChandraIfU.S. households decide to work fewer hours and take more leisure time, which component of GDP is most likely to decrease as a result? A. net exports B. investment C. consumption D. government spending2. Based on the information in the article, does it appear that in early 2016 U.S. households in fact worked fewer hours and took more leisure time? What do the data suggest? According to the article (household consumption,hoisehold incomes, or unemployment) grew at an annualized rate of ( what) percent, a ( drop or jump ) compared to the recent past. This suggests that households worked (fewer) hours and took (less or more) leisure time
Answers
Answer:
1. c. consumption
If US household decide to work fewer hours and take more leisure time, the component of GDP that is most likely to decrease is consumption and the households' income will decrease. Consumption in economics means the purchase of goods and services demanded by individuals in an economy and its occurs according to household income level.
2. The sentence that is required to know the growth rate of household consumption is Household consumption. Household consumption accounts for about 70% of the economy and grew at 4.2% annualized rate which is the biggest jump since the end of 2014.
Household consumption grew at an annualized rate of 4.2%, a jump compared to the recent past. This suggest household worked more hours and took less leisure time.
Dexter Company purchases $ 30,000 of equipment on January 1, 2020. The equipment is expected to last five years and be worth $ 5,000 at the end of that time. Prepare the journal entry to record one year's depreciation expense of $ 5,000 for the equipment as of December 31, 2020
Answers
Answer:
Dr Depreciation expense- Equipment $5,000
Cr Accumulated depreciation- Equipment $5,000
Explanation:
Preparation of the journal entry to record one year's depreciation expense
Based on the information given we were told that the Company purchases Equipment at the amount of $ 30,000 in which the equipment is expected to last for five years and the Equipment will be worth the amount of $5,000.
Based on this the Appropriate journal entry to record one year's depreciation expense of the amount of $ 5,000 for the equipment as of December 31, 2020 will be :
Dr Depreciation expense- Equipment $5,000
Cr Accumulated depreciation- Equipment $5,000
Calculated as:
Depreciation Expense-Equipment= ($30,000 – $5,000) / 5 years
Depreciation Expense-Equipment= $15,000/5 years
Depreciation Expense-Equipment= $5,000
Drag each example to the corresponding step in the new-product development process.
1. Idea Generation
2. Concept Testing
3. Product Development
4. Market Testing
5. Product Launch
6. Evaluation of Results
A. Samples
B. Big box
C. Brainstorm
D. Prototypes
E. Strong sales
F. Presentation
Answers
Answer:
1. Idea Generation ⇒ C. Brainstorm
Brainstorming is a process used to generate a large number of ideas where participating members contribute with any ideas that they can come up with.
2. Concept Testing ⇒ B. Big box
3. Product Development ⇒ D. Prototypes
When a company is developing a product, the firs thing that they will come up with is a prototype of the product.
4. Market Testing ⇒ A. Samples
Free samples are important when you are testing a new product, e.g. handing out free samples
5. Product Launch ⇒ F. Presentation
The formal presentation of a product takes place when the product is launched into the market.
6. Evaluation of Results ⇒ E. Strong sales
The way that a company can evaluate if a product was accepted or not by the market is to see their sales records, if sales are strong, then the product was accepted.