Mustard's Inc. sold the rights to use one of its patented processes that will result in cash receipts of $2,500 at the end of each of the next four years and a lump sum receipt of $4,000 at the end of the fifth year. The total present value of these payments if interest is at 9% is:

Answers

Answer 1

Answer:

PV= $10,030.27

Explanation:

Giving the following information:

Cash flow= $2,500

Lump sum= $4,000

i= 9%

n= 5

First, we need to calculate the future value of the cash flows:

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

A= annual cash flow

FV= {2,500*[(1.09^4) - 1]} / 0.09

FV= 11,432.82

Now, the total future value:

FV= 11,432.82 + 4,000= 15,432.82

Finally, the present value:

PV= FV/(1+i)^n

PV= 15,432.82/1.09^5

PV= $10,030.27


Related Questions

creases in equity of a particular business enterprise resulting from transfers to it from other entities of something of value to obtain or increase ownership interests is a(n) Blank 1 of 1 by owners.

Answers

Complete Question:

Increases in equity of a particular business enterprise resulting from transfers to it from other entities of something of value to obtain or increase ownership interests is a(n) ________ by owners.

Answer:

Investments by owners.

Explanation:

Increases in equity of a particular business enterprise resulting from transfers to it from other entities of something of value to obtain or increase ownership interests is an investment by owners.

An owner investment can be defined as the amount of assets that is invested into a company by the owner or founder as a startup or for its smooth operations.

Generally, this type of account has a credit balance and is typically a temporary equity account.

"XYZ Corporation announces a 10% stock dividend, followed by a 5% "spin off" of a subsidiary business. A customer who owns 200 shares of XYZ will receive:"

Answers

Answer:

20 shares of XYZ and 11 shares of the spin-off

Explanation:

The 20 shares of XYS comes from

= 200 shares × 10%

= 20 shares-

So, the total number of shares now is

= 200 shares + 20 shares

= 220 shares

And there is 5% spin off

So, the number of shares contains spin off is

= 220 shares × 5%

= 11 shares

This represents the separate company

hence, there is 20 shares of XYZ and 11 shares of the spin-off

The process of taking care of the partnership's outstanding obligations and distributing any remaining assets:

a. Winding up Operation of law
b. Dissolution
c. Alienation
d. Acts of the parties Futility

Answers

Answer:

Winding up

Explanation:

Winding up in partnership is a post dissolution procedure that entails the distribution and liquidation of any remaining partnership property and assets, settling outstanding debts owed to non partners and sharing of remaining assets among the remaining partners.

The five guiding steps to winding up partnership are

Review partnership agreementDiscuss the decision to wind up  with partnersFill a  dissolution formNotify concerned partiesSettle and close out all account,

memorandum of association can be amended by

Answers

Answer:

Explanation:

A company's Memorandum of Association may be changed by the shareholders passing a special resolution in a general meeting or by written resolution. A copy of the resolution must be sent to Companies House within 15 days.

"A young widow who works has a $750,000 net worth and a securities portfolio valued at $200,000. The current asset allocation of the portfolio is 80% equity securities; 8% fixed income securities; and 12% money market securities. In which circumstance should she consider reallocating her portfolio?"

Answers

Answer: C.  If she becomes unemployed during a recessionary period

Explanation:

If the young widow becomes unemployed during a recessionary period, she would need regular income and as it is a recession, companies might be feeling the heat so she might not get any from her Equity positions.

She would need to reduce her equity holdings and increase her fixed income and money market securities as they offer more stable and regular income that she can withdraw.

The Allowance for Bad Debts account has a credit balance of $9,000 before the adjusting entry for bad debts expense. After analyzing the accounts in the accounts receivable subsidiary ledger using the aging−of−receivables ​method, the​ company's management estimates that uncollectible accounts will be $14,000. What will be the balance of the Allowance for Bad Debts reported on the balance​ sheet?

Answers

Answer:

$14,000

Explanation:

balance of account for doubtful accounts account = $9,000 (credit balance)

estimated collectible accounts = $14,000

the adjusting entry should be for = $14,000 - $9,000 = $5,000

December 31, 202x, bad debt expense

Dr Bad debt expense 5,000

    Cr Allowance for doubtful accounts 5,000

Since the company uses the aging-of-receivables ​method, the balance sheet must report the amount determined using it.

Historical evidence on the returns of large portfolios of stock and bonds shows that investments with higher volatility have rewarded investors with higher returns.

a. True
b. False

Answers

Answer:

true

Explanation:

investments with higher volatility helps in achieving higher returns by the investors and this will helps to boost the the organization morale

It should be noted that Historical evidence on the returns of large portfolios of stock and bonds shows that investments with higher volatility have rewarded investors with higher returns.

The strategy in which a company sells its exports to another country at a lower price than it sells the same product in its domestic market is referred to as

Answers

Answer:

Dumping

Explanation:

Dumping is protectionist strategy in which a company sells its exports to another country at a lower price than it sells the same product in its domestic market. Dumping is usually associated with a substantial volume of export of a product, it often endangers the financial viability of the product's manufacturer or producer in the importing nation.

What is the yield to maturity of a bond that as a face value of $1,000, is currently selling for $980, has a 5% coupon (paid semi-annually) and matures in 5 years.

Answers

Answer:

5.47%

Explanation:

The computation of yield to maturity is shown in the attachment:

Given that

FV = $1000

PV = ($980)

PMT = 5% ÷ 2 × 1,000  = $25

Number of years = 5 years × 2 =  10 Years

The formula is shown below:  

= Rate(NPER;PMT;-PV;FV;type)  

The present value come in negative  

So, after applying the above formula, the yield to maturity is

= 2.73 × 2

= 5.46%

Therefore with the help of spreadsheets (as attached),  we could explain in a better manner.

6. The EPA has a green building benchmark program in which buildings submit energy data about their building to see where they stand among like building in the country with regards to energy use. This program is known as:

Answers

Answer:

Energy Star Portfolio Manager

Explanation:

The Energy Star Portfolio Manager is available online and there you can check and compare how "green" a building or group of building is compared to others. Several environmentally issues are measured by this program, e.g. energy or water consumption, waste disposal, etc.  

Question 1 of 15 A policy will pay the death benefit if the insured dies during the 20-year premium-paying period, and nothing if death occurs after the 20-year period. What type of policy is this

Answers

Answer:

a 20 year level term policy

Explanation:

A level term policy is meant to insure a certain benefit for a specific period of time. During this time, the premium is also fixed (level) which means that it will not change as time passes. A level term policy is adjusted only after it has expired and it is generally adapted upwards since the age of the insured person increased as well as the possibility of death.

f Italy can produce 100,000 more pounds of chocolate every year by forgoing the production of 200,000 pounds of pasta, what is the opportunity cost of 1 pound of chocolate

Answers

Answer:    ADD 100,000+200,000+1 pound which is 16 to get your answer and it would be

Explanation:    300,016 that is your answer is this helpful??

A fund starts with a zero balance at time zero. The fund accumulates with a varying force of interest : δ t = 2 t t 2 + 1 for t > 0 A deposit of $100,000 is made at time 2. Calculate the number of years from the time of deposit for the fund to double.

Answers

Answer and Explanation:

Given function

S(t) =2t/t²+1 where t > 0

and fund accumulates with a varying force of interest.

and $100,000 is deposited at time 2.

Number of years it will take from the time of deposit for the fund to double,

Substituting t in the formula given that t is 1 because t>0 and deposit begins to grow from time of deposit 2

= S(t)= 2*1/1² + 1=1

Therefore time it will take for funds to double is 1 year from time of deposit

Deciding which car to buy requires thinking; critical thinking, however, involves considering multiple choice how to finance the car. whether it would be a more environmentally sound choice to ride a bike. whether you have good reasons for choosing a particular car. whether you need a car at all.

Answers

Answer:

whether you have good reasons for choosing a particular car.

Explanation:

When deciding which car to buy, it is necessary for an individual to adopt critical thinking in order to decide what are the reasons that will lead him to choose a particular car.

Critical thinking will help to identify whether the features and benefits of a car model are aligned with issues relevant to the consumer, such as price, costs, design, style, etc.

The consumer when deciding to buy something goes through different stages in the purchase decision process, which is identifying needs, searching for information on solutions to their problem, analyzing the available options and purchasing. By following these steps, it is possible to develop critical thinking that will lead the consumer to make an accurate and effective purchase to satisfy their needs and desires.

An example of a firm with market power is a delicatessen in New York. cable TV provider in Tulsa. clothing store in Chicago. family farm in Kansas.

Answers

Answer: cable TV provider in Tusla

Explanation:

Market power simply refers to instances whereby organizations, companies or group of companies raise the prices in the market above the equilibrium level. This is done by companies that have huge capital base and hence send out other competitors.

An example of a firm with market power is cable TV provider in Tusla.

You view tea and scones as perfect complements, and you prefer to consume one cup of tea with one scone. Also, your indifference curves are plotted with tea on the vertical axis. If you presently have 1 cup of tea and 3 scones, what this the marginal rate of substitution (MRS) at this point

Answers

Answer:

Infinity

Explanation:

The marginal rate of substitution means the consumer has forgone a certain quantity of one item in exchange for another whilst keeping the equal level of utility.

When two items were viewed (tea and scones), a certain amount of tea was forgone in exchange for scones. Now on the indifference curves, where the tea is on the vertical axis and the scones is one the horizontal axis, the marginal rate of substitution (MRS) at this point will be infinity

what is trade in economics​

Answers

Answer:

Trade is a basic economic concept that involves  the buying and selling of goods and services, in which compensation is  paid by a buyer to a seller, for goods or services or the exchange of goods or services between parties(which is known as trade by barter )

Explanation:

Answer: Trade means we give some thing  for some thing else

The company that you are working for has a highly available architecture consisting of an elastic load balancer and several EC2 instances configured with auto-scaling in three Availability Zones. You want to monitor your EC2 instances based on a particular metric, which is not readily available in CloudWatch. What is a custom metric in CloudWatch which you have to manually set up?

Answers

Answer:

Memory Utilization of an EC2 instance

Explanation:

An EC2 instance is a server that is in terms of virtual in the Amazon Elastic Compute Cloud (EC2) to run the applications over the web services. It is a platform that should be cloud computing for permitting the subscribers of the business in order to run the programs related to the applications

Therefore according to the given situation, the custom metric that should be manually set up is utilization of the memory for EC2 instance

David Fisher, a recently retired corporate executive, is becoming restless in his new role and would like to make this transition smoother by participating in the business community in some limited manner. Since David is financially secure and primarily interested in some sort of volunteer work, he should consider becoming involved with which of the following SBA programs?

a. ACE
b. SBIC
c. SBDC
d. SBI
e. SCORE

Answers

Answer:

E. Score

Explanation:

A movie star was paid $1 million in 1960 to do a movie. The CPI was 29.3 in 1960 and the CPI in 2014 was 240. Approximately how much did the movie star earn in 2014 dollars

Answers

Answer:

$8.19 million

Explanation:

A movie star was paid $1 million in 1960 to do a movie

The CPI was 29.3 in 1960

The CPI in 2014 was 240

Therefore the amount that was earned in dollars by the movie star in 2014 can be calculated as follows

= 240/29.3

= 8.19 × $1 million

= $8.19 million

Hence the movie star earned $8.19 million in 2014

Peterson Manufacturing and the local steelworkers' union are having a negotiation breakdown. Peterson's management is keeping employees out of the workplace and running the operation with temporary replacements. Which type of strategy is most likely being used to overcome the negotiation breakdown

Answers

Answer:

B) lockout

Explanation:

Since in the question it is mentioned the manufacturing Peterson and the local steelworkers contain the negotiation breakdown also is keep out of the work place and runs the operations with non permanenet replacements

So here to overcome this breakdown, the lockout strategy is used

And all other given options are wrong.

Based on the following information, calculate net income for Dana's Dress Shop using the traditional format. Sales $360,000 Gross Margin $140,000 Contribution Margin $110,000 Total Selling & Administrative Exp. $60,000

Answers

Answer:

$80,000

Explanation:

Calculation for the net income for Dana's Dress Shop using the traditional format

NET INCOME USING TRADITIONAL FORMAT

Using this formula

NET INCOME=Gross Margin -Total Selling & Administrative Expenses

Where,

Gross Margin =$140,000

Total Selling & Administrative Expenses=$60,000

Let plug in the formula

NET INCOME=$140,000-$60,000

NET INCOME=$80,000

Therefore the NET INCOME will be $80,000.

Answer: 80k

Explanation: Bc quizlet said so :)

Suppose the United States can produce 2,000 cars or 2,000 trucks. Japan can produce either 2,000 cars or 1,000 trucks. In terms of car production, we can conclude that

Answers

Answer: Japan has a Comparative Advantage

Explanation:

The country that has a Comparative Advantage in the production of a good is the one that has to give up less of another good to produce it. In other words, it is the country with a lower Opportunity cost.

The United States can either produce 2,000 cars or 2,000 trucks. This means that to produce 1 car the US foregoes;

= 2,000/2,000

= 1 Truck

Japan can either produce 2,000 cars or 1,000 trucks. This means that for every car produced the Japanese forgo;

= 1,000/2,000

= 0.5 trucks.

The Opportunity cost for the Japanese is less for producing cars so they have the comparative advantage.

Which of the following is a long-run adjustment? A firm lays off two workers. Two firms exit the asbestos removal industry.

Answers

Answer:

Two firms exit the asbestos removal industry.

Explanation:

This is a long-run adjustment because, the firm left one industry to focus on other part of their business. For example, it could be due to lack of finance or profit margin been small that made the firm to quit asbestos removal industry.

Karen just finished typing an important memo that she needs to send to many people, including the president of the company. Karen should _____.

Answers

Answer:

C. proofread her work carefully, ask a coworker to look it over, and correct all mistakes

Explanation:

Since in the question it is mentioned that Karen just finished the typing for an important memo and wants to send to many persons involved the president of the company

So here karen should proofread her work carefully and if it involved any kind of mistake that it should be corrected so that it would not create a bad presentation to the many people

Hence, the correct option is C.

ABC Corporation has just completed an IPO raising $100 million. The investment bankers handling the offering made total commissions of $4 million. It is most likely that this was A) a firm commitment underwriting. B) a standby underwriting. C) a best efforts underwriting. D) an all or none underwriting.

Answers

Answer:

B) a standby underwriting.

Explanation:

This is because, the investment bankers handling the ABC Corporation IPO (Initial Public Offering) listing and selling of shares would have entered into standby underwriting where they made promises to purchase whatever that remain if they were not able to complete the shares selling to the public. Fortunately, it was successful executed hence the reason why they were able to earn a commission of $4 million.

What is the term used for the inbound movement and storage of materials in preparation for those materials to enter and flow through the manufacturing process?

Answers

Answer:

Materials management

Explanation:

Materials management is the continuous supply or provision of materials required to produce goods in a manufacturing company.

The purpose of materials management is to ensure that there are no interruption or delay in the supply of quality raw materials needed for production purposes . This is because if there are interruptions in the supply of materials , such may affect the expected output of the organization hence results in lower profit . The portion of the market controlled by the organization may be affected as well including their brand reputation.

If at the end of Year 1 an appraiser provides a certified opinion that the market value of the land is $2,800 the company would continue to list the land on its books at $2,200. This statement is

Answers

Answer:

True

Explanation:

Based on the information given the statement is TRUE because if an appraiser which is person whose job and responsibility is to help assess the market value of things which is the amount in which a product can be sold had provide an approved and acceptable opinion that the market value of the land is the amount of $2,800 which means the company would continue to list the land on its books at the amount of $2,200 reason been that the amount of $2,200 is the book value of the land or the cost of purchasing the land while the amount of $2,800 is the market value which will enable the company to make a gain or profit of $600 ($2,800-$2,200) if the land was been sold for the amount of $2,800.

What is the gain or loss from purchasing a call option on $100,000 face value Treasury bonds with a strike price of $90,000 (90 points) and a premium of 1.5 points ($1,500) with an expiration date at the end of July if the end-of-July selling prices for the bonds is $80,000

Answers

Answer:

Profit of $8,500

Explanation:

Strike Price = $90,000

Premium = $1500

When Break even point = Strike price - premium

Break even point = $90,000 - $1,500

Break even point = $88,500

Hence, Profit = Break even point - Share price

Profit = $88,500 - $80,000

Profit = $8,500

Bronson Corporation incurs the following annual costs in producing 30,000 video cards for computers: However, if Bronson purchases the video cards from another company at a cost of $10 per card, what would be the increase (decrease) in net income if no fixed costs can be eliminated?

Answers

Answer: ($60,000)

Explanation:

Fixed cost is a cost that doesn't vary alongside production level. It should be noted that the relevant cost for production will be addition of the direct materials to the direct labour and the variable maufacturing overhead. This will be:

= $60,000 + $80,000 + $100,000

= $240,000

The relevant costs that will be bought will be:

= 30,000 × $10

= $300,000

Therefore there'll be decrease in net income by:

= $300,000 - $240,000

= $60,000

The answer will be ($60,000)

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