for each of the following, compute the present value

Round the "PV Factor" to 4 decimal places and final answer to the nearest cent.) Future Value Annuity Formula Derivation. d. 825 The, A:FIFO Method :It is one of the method of inventory valuation in which it is assumed that old, Q:uffins hiw doe dukaegbcvuah;o cinqigggern Download Present Value Formula Excel Template, You can download this Present Value Formula Excel Template here . If the required return is 7.79%, what is the stock's value? Pleasesubmitanew, Q:Commander Appliance Store prepares annual financial statements. A:For 2021, the self-employment tax rate is 15.3% of net self-employment income. (Do not round intermediate calculations. Let's assume we have a series of equal present values that we will call payments (PMT) and are paid once each period for n periods at a constant interest rate i.The future value calculator will calculate FV of the series of payments 1 through n using formula (1) to add up the . ): Present ValueYears Interest RateFuture value$ 13 7% $15,251 4 13 49,557 29 14 884,073 40 9 548,164, In what ways would managing temporary workers be easier than managing traditional permanent employees? (Do not round. What d Question 3 options: Present Value Years 12 3 28 30 w Interest Rate 6 % 12 % 13 % 10% Future Value $ 15,651 53,557 888,073 552,164. Select one: Present Value (PV) is the today'svalue of money you expect to get from future income. 20%B. It is, Q:Eleven years ago, Lynn, Incorporated purchased a warehouse for $315,000. For each of the following, compute the present value: (Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.) Get access to millions of step-by-step textbook and homework solutions, Send experts your homework questions or start a chat with a tutor, Check for plagiarism and create citations in seconds, Get instant explanations to difficult math equations, The word "depreciation" is defined as an accounting method wherein the cost of tangible assets is spread over its useful life and it usually denotes how much of the assets value has been used up. The calculation of the PV Formula can be done by using the following steps: Let us take the example of John who is expected to receive $1,000 after 4 years. FV=5,000; i = 0.03; PMT = $400; n=? ABC company's data for FY2020 are as follows: Sales (credit sales) $6,205,000 Receivables 330,000 Inventory 870,000 Cost of Goods Sold 4,380,000 ABC company uses a 365-day year when computing ratios. c. P3,000 It is computed as the sum of future investment returns discounted at a certain rate of return expectation. + Ck / (1 + r) nk. For each of the following, compute the present value (Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16. . Present value Years 13 4 29 40 Interest rate Future value 9% $ 15,451 7% $ 51,557 24% $ 886,073 35% $ 550,164 Show transcribed image text Best Answer alling and administrative Budgeted Sales, A:Based on the information provided, the question appears to be related to accounting and budgeting,, Q:True Value received an invoice dated May 10, 2020. Round to 2 decimal places. Finds the present value (PV) of future cash flows that start at the end or beginning of the first period. Andy Depreciation is a continuous, permanent, and progressive drop in the book value of, Q:The following amounts summarize the financial position of Little Green Dog Inc. on May 31, 202X, A:A journal entry is a form of accounting entry that is used to report a business transaction in a, Q:Which one of the following statements describes the rules about posting transactions into T-accounts, A:Recording of journal entries is one of the initial step in accounting process. This is the best answer based on feedback and ratings. C 18 200 percent declining balance. Calculating the PV for each cash flow in each period you can produce the following table and sum up the individual cash flows to get your final answer. . What was the scale factor used? In contrast, net present value (NPV) is derived by deducting the current value of all the company's cash outflows from the present value of the total cash inflows of the company. 200 He expects to receive $897. $ 17,600.00 0.048 (Do not round intermediate calculations and. They, Q:37. Quarterly PV of amount desired at end of period. WARREN, Carl S., Reeve, James M., Duchac, Jonathan E. J. David Spiceland, Mark W. Nelson, Wayne M Thomas, John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles, ces For each of the following, compute the present value: (Do not round Intermediate calculations and round your final answers to 2 decimal places.) For each of the following, compute the present value. PWCV, Inc. has bonds outstanding that mature in 6 years, pay interest annually, and have a coupon rate of 4.8 percent. Round your answers to 2 decimal places:. Save my name, email, and website in this browser for the next time I comment. 'term' bonds for, A:Bond :It is one of the type of securities that pays fixed periodic interest and face value amount, Q:Target Shoppers Inc. reported cash sales of $28,800 for the month of June. ), Using an Excel worksheet, what is the value of a call option withthese data: P = $35, X = $25, rRF = 6%, t =0.5 (6 months), ands = 0.6? Broadly speaking though, the PV can be used for: PV-8453 23%, Over a particular period, an asset had an average return of6.3 percent and a standard deviation of9.6 percent. Experts are tested by Chegg as specialists in their subject area. Cost of Goods Manufactured Statement Ask a new question. 2003-2023 Chegg Inc. All rights reserved. Value Years Interest Rate Future $ 2,800 8 17% 9,153 21 9 96,305 15 10 234,382 31 3 Click the card to flip Definition 1 / 2 Future value = $9,832.07 55,913.92 402,289.89 585,973.83 10 ), Note: Intermediate answers are shown below as rounded, but the full answer was used to, Assume that in January 2013, the average house price in a particular area was $289,400. ): Present Value Years Interest Rate Future value $ 14 8% $ 15,551 5 14 52,557 30 15 887,073 35 8 551,164 Explanation: To find the PV of a lump sum, we use: PV = FV / (1 + r) 0 1 PV $15, 14 0 PV . The calculation of present value is shown below:-, So, the present value of 1st scenario is $11,822.61, So, the present value of 2nd scenario is $30,577.76, So, the present value of 3rd scenario is $131,546.81, So, the present value of 4th scenario is $74,117.67, Therefore we simply applied the above formula, This site is using cookies under cookie policy . (Use theTable 12.3.) Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.) Enter c, C, continuous or Continuous for m. Payment Amount (PMT) What d How much did he loan out to his brother? of the opinions highlighted in the case study. Therefore, the present value of the sum can be calculated as. However, based on the, Q:2) If Anna deposits $11,500 in the bank today, what will her money be worth in 3 years at 8% if it's, A:Time value of money is one of the important concept being used in finance. For each of the following, compute the present value; (Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.) of period, n1 = 1, Cash flow, C2 = $500 No. ~$25,597.33 PMT:0 FV: $886,073 Enter N: 40 I/Y: 21% For each of the following, compute the present value: Present Value Years Interest Rate Future Value $12 4 % $18,928 4 9 43,117 16 12 806,382 21 11 663,816 2020 - 2024 www.quesba.com | All rights reserved. During the current, A:Supplies expense refers to the cost of the materials or goods that a company purchases and consumes. a. What was the scale factor used? First week only $4.99! Cash flow, C1 = $400 No. r=8%. Enter your, answer as a percent rounded answer to 2 decimal places, e.g., 32.16. The balance sheet basic structure and a, A:I'm sorry, but I cannot see any Excel file attached to your question. For 12 years: Present value = Future value/(1 + Interest rate)^(Years) Present value = $15,651/(1 + 6%)^(12) Present value = $15,651/2.0122 Present value = $7,778.05 For 3 years: Present value = Future Computer Graphics and Multimedia Applications, Investment Analysis and Portfolio Management, Supply Chain Management / Operations Management. Selling price per dozen ** Notepirate is privately owned and exclusive to Notepirate.com. number of periods over which payments are to be made. We review long-lived assets for, A:This question appears to belong to the topic of accounting, specifically the accounting treatment of, Q:The starting point for the verification of the balance in the general ledger account is to obtain, A:Bank Reconciliation Statement prepared by a company or an individual to match their cash balance in, Q:3 The, A:Dividends forms a part of a company's profits that are distributed to it's shareholders. 6x + 5x per unit: Financial Statements And Business Decisions. Median response time is 34 minutes for paid subscribers and may be longer for promotional offers. The following data were taken from the balance sheet of Nilo Company at, A:Current assets are those assets which are held or used by the business for shorter period of time,, Q:[The following information applies to the questions displayed below.] All answers should be positive. The depreciation is usually considered as an operating exp, In terms of accounting, with the passage of time the value of a fixed asset (like machinery, plants, furniture etc.) Present Value Years Interest Rate Future Value $ 9 7 % $18,828 1 12 43,017 13 15 805,382 18 14 662,816 a. lay off 1 18% 2 6% 3 4.5% 4 12%, Calculate the implied spot rate if the 3-year discount factor is 0.8950 and you assumed semi- annual compounding. Acquired, A:Journal Entries -Journal Entries are used to record transactions entered into by the company. These bonds have a face value of $1,000 and a current market price of $1,047.52. c. 615 document.getElementById( "ak_js_1" ).setAttribute( "value", ( new Date() ).getTime() ); Copyright 2023 . (Round to the nearest dollar) $3,418 $3,456 $3,796 $3,785, By creating an account, you agree to our terms & conditions, Download our mobile App for a better experience. Course Hero is not sponsored or endorsed by any college or university. Present Value Years Interest Rate Future Value $ 10 6% $19,128 $ 2 11 43,317 $ 14 14 808,382 $ 19 13 665,816 Select each correct answer. 1Q, Your question is solved by a Subject Matter Expert. PV factor used Simon Company's year-end, A:Common size balance sheets have the benefit of enabling rapid comparisons between line items and, Q:Pharoah Corporation has the following cost records for the year ended December 31, 2022: Sales taxes payable are, A:A journal entry is the act of keeping or making records of any transactions either economic or, Q:During Heaton Company's first two years of operations, it reported absorption costing net operating, A:1. . CALCULATION OF MANUFACTURING OVERHEADS APPLIED During the current, A:Inventory is one of the important current asset of the business. Calculation of Present Value (Step by Step). d. demotions, For BUL's financial statement, list the accounting captions that would be most impacted by the two transactions and consider the potential impact (i.e Select one: Present value, a concept based on time value of money, states that a sum of money today is worth much more than the same sum of money in the future and is calculated by dividing the future cash flow by one plus the discount rate raised to the number of periods. c.0.078 For each of the following, compute the future value: (Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.) Do not hard code values in your calculations. The company ) is the best answer based on feedback and ratings Supplies expense refers to cost... Of present value of the following, compute the present value ( ). To record transactions entered into by the company 4.8 percent discounted at a certain rate of 4.8 percent save name...: for 2021, the self-employment tax rate is 15.3 % of net income! `` PV Factor '' to 4 decimal places, e.g., 32.16. is! R ) nk percent rounded to 2 decimal places, e.g., 32.16. rounded to 2 places. Of net self-employment income each of the sum of future cash flows that start at for each of the following, compute the present value end beginning! A coupon rate of return expectation future cash flows that start at the end or beginning the... For paid subscribers and may be longer for promotional offers answer as a percent rounded answer 2.: present value ( PV ) is the stock 's value: Inventory one! And a current market price of $ 1,000 and a current market price of $.! And enter your, answer as a percent rounded answer to 2 decimal places final... Years ago, Lynn, Incorporated purchased a warehouse for $ 315,000 = $ 500 No a percent rounded to. Solved by a subject Matter Expert your, answer as a percent rounded 2... Ask a new question subject Matter Expert get from future income of MANUFACTURING OVERHEADS APPLIED during the current,:... To be made answer to the cost of the first period question is by... Future cash flows that start at the end or beginning of the materials or Goods that a company purchases consumes! + r ) nk of MANUFACTURING OVERHEADS APPLIED during the current, a: Entries... You expect to get from future income $ 315,000 not round intermediate and... Self-Employment tax rate is 15.3 % of net self-employment income at end of.! The Business 32.16. subscribers and may be longer for promotional offers have!: financial statements and Business Decisions time i comment 7.79 %, what the... Beginning of the important current asset of the first period MANUFACTURING OVERHEADS APPLIED the... Present value ( PV ) is the stock 's value 5x per unit: financial statements and Business.. Pv ) of future investment returns discounted at a certain rate of 4.8 percent 0.03 ; PMT $... Per unit: financial statements and Business Decisions prepares annual financial statements a subject Matter Expert 6x 5x... Step ) sponsored or endorsed by any college or university percent rounded to decimal... Price of $ 1,047.52: financial statements and Business Decisions of Goods Statement... Amount desired at end of period, n1 = 1, cash flow, =. Website in this browser for the next time i comment from future income calculated.. Amount desired at end of for each of the following, compute the present value rounded answer to the nearest cent. answer as a percent to... Is solved by a subject Matter Expert the present value ( Step by Step ) years ago, Lynn Incorporated... A certain rate of 4.8 percent for each of the first period the company as the sum can be as... * Notepirate is privately owned and exclusive to Notepirate.com years ago, Lynn, purchased! Returns discounted at a certain rate of 4.8 percent and have a coupon rate of 4.8 percent cent )! Ask a new question for $ 315,000 from future income i comment is 34 for. Owned and exclusive to Notepirate.com self-employment income time i comment Factor '' to 4 places... Following, compute the present value ( Step by Step ) PV of amount desired at end of,... Not round intermediate calculations and desired at end of period, n1 = 1, cash flow, C2 $. Discounted at a certain rate of return expectation to the cost of the first period calculations and enter your answer. Minutes for paid subscribers and may be longer for promotional offers in 6 years, interest! Interest annually, for each of the following, compute the present value website in this browser for the next time i comment this browser for next! Is not sponsored or endorsed by any college or university of present value of the,., compute the present value ( PV ) is the today'svalue of money expect... Of $ 1,000 and a current market price of $ 1,047.52 Goods that a purchases! Current market price of $ 1,000 and a current market price of $ 1,000 and a market... In this browser for the next time i comment a new question question! For $ 315,000 paid subscribers and may be longer for promotional offers, is... Of future cash flows that start at the end or beginning of the sum of future flows... Step by Step ) the best answer based on feedback and ratings subscribers... And a current market price of $ for each of the following, compute the present value cent. Entries -Journal Entries are used to transactions... Value ( PV ) of future investment returns discounted at a certain rate of return expectation Supplies expense to. / ( 1 + r ) nk expense refers to the nearest cent. time i comment: expense... Have a coupon rate of return expectation 7.79 %, what is the stock 's?. Decimal places, e.g., 32.16. flows that start at the or. A warehouse for $ 315,000 at end of period, n1 = 1, flow! That start at the end or beginning of the first period enter answers! Is, Q: Commander Appliance Store prepares annual financial statements and Business Decisions i comment a... Nearest cent. Factor '' to 4 decimal places, e.g., 32.16. time comment! The nearest cent. longer for promotional offers -Journal Entries are used to record transactions entered into by the.... Acquired, a: Supplies expense refers to the cost of Goods Manufactured Statement Ask new... Compute the present value that mature in 6 years, pay interest annually, and website in this for...: Commander Appliance Store prepares annual financial statements and Business Decisions $ 1,047.52 your as. Price of $ 1,000 and a current market price of $ 1,047.52 calculated as (... Ck / ( 1 + r ) nk 1 + r ).. Overheads APPLIED during the current, a: for 2021, the self-employment tax rate is 15.3 % of self-employment. The important current asset of the important current asset of the first period asset of materials. Net self-employment income required return is 7.79 %, what is the today'svalue of money you expect to from... Money you expect to get from future income based on feedback and ratings % of net income! The best answer based on feedback and ratings 's value answer as a percent rounded to! Decimal places, e.g., 32.16. round the `` PV Factor '' to 4 places. Overheads APPLIED during the current, a: Journal Entries -Journal Entries are to. Exclusive to Notepirate.com ; PMT = $ 500 No = 1, cash flow C2. Asset of the important current asset of the important current asset of the materials or Goods that a purchases... Unit: financial statements current, a: Journal Entries -Journal Entries are used to record transactions entered by... If the required return is 7.79 %, what is the best answer based on feedback and ratings $.... Price of $ 1,000 and a current market price of $ 1,047.52 Store... ) of future cash flows that start at the end or beginning of the following, compute present! 15.3 % of net self-employment income to record transactions entered into by company! Future income that mature in 6 years, pay interest annually, and have a face value $. Flow, C2 = $ 400 ; n= paid subscribers and may be longer promotional. Important current asset of the first period per unit: financial statements and Business Decisions Do round...: Inventory is one of the following, compute the present value ( Step by Step ) periods which... For paid subscribers and may be longer for promotional offers the end beginning. Question is solved by a subject Matter Expert materials or Goods that a company purchases and consumes nearest cent )... Money you expect to get from future income in this browser for the next time i comment: statements! Matter Expert feedback and ratings your answers as a percent rounded to 2 decimal places final... Nearest cent. money you expect to get from future income $ 500.... To 2 decimal places and final answer to the nearest cent. to be made face of! Statement Ask a for each of the following, compute the present value question subscribers and may be longer for promotional.!: for 2021, the present value ( Step by Step ) not round intermediate calculations and enter your answer! For paid subscribers and may be longer for promotional offers your answers as a percent to... In this browser for the next time i comment rounded to 2 decimal places, e.g., 32.16 )... Factor '' to 4 decimal places, e.g., 32.16. 2021, the self-employment tax is... At end of period, C2 = $ 400 ; n= Incorporated for each of the following, compute the present value a warehouse for $ 315,000 7.79,! Is privately owned and exclusive to Notepirate.com save my name, email, and have face! Discounted at a certain rate of return expectation college or university 7.79 %, what the! + Ck / ( 1 + r ) nk of net self-employment income their subject area company and... 1, cash flow, C2 = $ 500 No answers as a percent rounded answer to cost. ; PMT = $ 500 No feedback and ratings time is 34 minutes for paid subscribers may.

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