Answer:
Annuity due would be be chosen.
Explanation:
Let us assume the similar annual interest rate is 10%.
To decide which to choose, the present values of the two annuities are calculated and compared as follows:
1. For annuity due
Under an annuity due, payments are made to investors at the beginning of each time period. The present value of an annuity due can be calculated as follows:
PVd = P × [{1 - [1 ÷ (1+r)]^n} ÷ r] × (1+r) .................. (1)
Where;
PVd = Present value of an annuity due = ?
P = Annual payment = $1,000
r = interest rate = 10%, or 0.10
n = number of years = 20
Substituting the values into equation (1) above, we have:
PVd = $1,000 × [{1 - [1 ÷ (1 + 0.10)]^20} ÷ 0.10] × (1 + 0.10) = $9,364.92
2. For ordinary annuity
Under an ordinary annuity, payments are made to investors at the end of each time period. The present value of an ordinary annuity can be calculated as follows:
PVd = P × [{1 - [1 ÷ (1+r)]^n} ÷ r] .................. (2)
Where
PVo = Present value of an ordinary annuity = ?
P = Annual payment = $1,000
r = interest rate = 10%, or 0.10
n = number of years = 20
Substituting the values into equation (1) above, we have:
PVo = $1,000 × [{1 - [1 ÷ (1 + 0.10)]^20} ÷ 0.10] = $8,513.56
3. Decision
Since the present value (PV) of the annuity due of $9,364.92 is greater than the PV of ordinary annuity of $8,513.56, annuity due would be be chosen.
Answer: resources
Explanation: In simple words, resources refers to assets that are owned and used by a company to operate efficiently in the market.
In the given case, Carl scheduled safety training for the employees and took care that the injured employee gets his insurance. He performed all these decisions by using the money of the company.
Thus, he had been using the resources to tackle the situation.
Answer:
$5,055,000 TOTAL CURRENT ASSETS
$2,435,000 TOTAL CURRENT LIABILITIES
$4,691,000 Retained Earnings
Explanation:
2017 Balance Sheet
$875,000 Cash
$2,095,000 Accounts Receivable
$2,085,000 Inventories
$5,055,000 TOTAL CURRENT ASSETS
$7,566,000 Property, plant, and equipment
$600,000 Accounts Receivable
$8,166,000 TOTAL NONCURRENT ASSETS
$13,221,000 TOTAL ASSETS
$1,761,000 Accounts Payable
$20,000 Deferred Income Tax Liability
$654,000 Income Tax Payable
$2,435,000 TOTAL CURRENT LIABILITIES
$65,000 Deferred Income Tax Liability
$65,000 TOTAL NONCURRENT LIABILITIES
$2,500,000 TOTAL LIABILITIES
$2,350,000 Common Stock
$3,680,000 Paid in Capital
$4,691,000 Retained Earnings
$10,721,000 TOTAL EQUITY
$13,221,000 TOTAL EQUITY + LIABILITIES
Income Statement 2021
Sales $13.560,000
Cost and Expenses -$11.180,000
Net Income Before Taxes and Int $2.380,000
Interest Expenses -$1.179,000
Net Income Before Taxes $1.201,000
Please find full question attached
Answer and Explanation:
I will use Apple and HP in this comparison.Here I would compare Apple's laptop to that of Hewlet Packard as this is where they meet in the industry. Apple employs a strategy of differentiation and standing out in competition through their products. They aim to create products that are quite different and unique/innovative from other products in the market, and yet what the customer wants. In doing this, Apple has a trade-off for cost as they charge alot higher for their products than their competitors. HP on the other hand focus on making the best possible products that get the job done/meet the needs of customers while also being affordable. HP is more focused on affordable devices for their market and therefore have a different market segment for laptops from that of Apple. There is a trade-off for cost and market segment in this comparison
Answer:
$9,236.71
Explanation:
The computation of the maturity value of the note is shown below:-
Interest Amount = ($9000 × 8%) × 120 ÷ 365
= $720 × 120 ÷ 365
= $236.71
So, the Maturity Value is
= Face value + Interest amount
= $9,000 + $236.71
= $9,236.71
Therefore for computing the maturity value we simply applied the above formula.
b. 200
c. 50
d. 100
e. 1000
Answer: 100
Explanation: Its 100
Canliss Mining Company borrowed $41,006.
To find out how much Canliss Mining Company borrowed, we'll work step by step.
Future Value of $1 (FV): This factor calculates the future value of a present sum after a certain number of periods.
Given that the annual installment payments of $10,000 are not due for three years, we'll find the future value of this annuity.
The FV factor for 7% over three years is approximately 1.225.
So, the future value of the annuity is
Present Value of $1 (PV): This factor calculates the present value of a future sum. In this case, we want to find out how much the $12,250 due in three years is worth in present terms.
Using the PV factor for 7% over three years, we find it's approximately 0.816.
So, the present value is
This means that Canliss Mining Company borrowed approximately $10,002 from the local bank.
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