How much would $50,000 due in 25 years be worth today if the expected rate were 5.5%? (Rounded)$10,680 $12,456$11,242 $13,112$11,833

Given details: P = $50,000 n = 25 years r = 5.5% or 0.055 Present value = P1+rn

Answered: How much would $50,000 due in 25 years…

Business

Accounting

How much would $50,000 due in 25 years be worth today if the expected rate were 5.5%?

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter11: Capital Budgeting Decisions

Section: Chapter Questions

Problem 14EB: How much must be invested now to receive $50,000 for 8 years if the first $50,000 is received in one...

See similar textbooks

Related questions

Q: O What happened to the company's return on assets and equity for the pasy five (5) years? 2016 2017…

A: The return on investment indicates the return on the amount of investment in assets, It also…

Q: Exercise 24-22A (Algo) Using Excel to compute IRR LO P4 Following is information on two alternative…

A: The internal rate of return (IRR) is a metric used in financial analysis to estimate the…

Q: 1. A company that operates 300 days a year requires 928 units of product B annually. The supplier…

A: Disclaimer: "Since you have asked multiple questions in a single question so we solve first…

Q: Avalanche Inc. revealed the following information for the year ended December 31, 2021: Preference…

A: Legal capital is the par value of total outstanding shares . It is that amount of company capital…

Q: Which of the following statements is not true? O a. Expenses increase stockholders' equity. O b. The…

A: The accounting equation states that assets equal to sum of liabilities and equity.

Q: Malit Corporation has a total shareholders' equity of P1,000,000, including retained earnings of…

A: Stockholders are the company's business owners who invest in the company's equity. As a return on…

Q: Kenjie owns shares of stocks of Luna Corporation ,a domestic corporation. He decided to sell the…

A: Donor's Tax shall be levied at 6% on the amount of gift/donation made over and above P250,000. For…

Q: Draw a graph related to your previous answers in a) and b). Consider the information from the graph,…

A: a) Currently Diversity Ltd is selling at Break even point i.e. Break even number of units. The…

Q: What are some advantages of using IT and audit software when conducting an audit?

A: The audit can be defined as the independent examination of internal control, accounting records, and…

Q: On December 31, 2020, Naruto Company leased a new machine from Sasuke with the following pertinent…

A: A lease contract is a written agreement between two parties that details the lease conditions and…

Q: Inc. has a shoes and a shirts division. The company reported the following segmented income…

A: Total net operating income with Shirts = $0 Total net operating income without Shirts =…

Q: A company reported the following: Net income $423,790 Preferred dividends $31,390 Shares of common…

A: Calculation of company's price-earnings ratio :- To calculate company price earnings ratio we need…

Q: received 1,000,000 Long-term loss accrual in excess…

A: The difference between Financial income and Taxable income will result in Deferred tax assets or…

Q: Decision-Making Across the Organization CT14.3 Norman Roads and Sara Mesa are examining the…

A: (a) DEL CARPIO SLU Statement of Cash Flows For the Year Ended January 31, 2020 Cash…

Q: Based on the Module 1 content, briefly explain what the theory of comparative advantage would…

A: Opportunity cost means the number of units of a product forgone in order to produce a unit of…

Q: For three years Chona's Merchandise failed to recognize accruals, prepayments and other transactions…

A: Adjusted amounts are the one which are required to be added or subtracted in the financial…

Q: 1.)During the year 2021,David Company purchased 1,000 shares of Goliath Company ordinary shares at…

A: 1) Holding gain should David report in equity on Dec 31, 2021 :- 1,000 ordinary shares of Goliath…

Q: How much investment income is recognized by Beyonce on the sale of 2,000 stock rights?

A: Right issue refers to the offer of shares by a company to its existing shareholders in proportion to…

Q: Bellingham Company produces a product that requires 2.5 standard pounds per unit at a standard price…

A: Introduction: Income statements show a company's financial success over a certain time period. The…

Q: JSON-2603 Inc. produces Products X5, Y8, and Z9. The following table provides per unit information…

A: Introduction: Direct materials are the resources utilized to manufacture a product in accounting.…

Q: ider “control environment.” Why it is important for auditors to understand a client’s control…

A: A controlled environment refers to the term "Internal control environment" which implies that the…

Q: 53. On January 1, 2019 Cheese Company acquired and installed an oil rig. The was acquired at its…

A: As per IAS16, an entity shall also capitalise the cost of dismantling the asset in future along with…

Q: Del Gato Clinic's cash account shows an $12,472 debit balance and its bank statement shows $13,074…

A: Bank reconciliation: It is a statement drawn up by the business to verify the cash book balance with…

Q: Direct Materials and Direct Labor Variances At the beginning of June, Kimber Toy Company budgeted…

A: variance arises whenever there is difference arises in the standard set and the actual that takes…

Q: Daley Company prepared the following aging of receivables analysis at December 31. Days Past Due 31…

A: Req-(a) Accounts Receivable Percent Uncollectible (%) Estimated Uncollectible (A)…

Q: What is the adjusted net income for 2019?

A: 2019 Reported Net Income $ 4,00,000.00 Adjustments: a. Failed to record Accrued Expense…

Q: On January 1, 2020, Riverbed Company sold 12% bonds having a maturity value of $850,000 for…

A: Formula: Amortization of bond premium = Interest payment - Interest expense where, Interest payment…

Q: On january 1, 2017, Nolte Company leased a machine from Durdil, Inc. for a five- year period. Equal…

A: At inception of lease, lease liability is recorded at present value of minimum lease payments. Hence…

Q: Perpetual Inventory Using FIFO Beginning inventory, purchases, and sales for Item Zeta9 are as…

A: Purchases Sales Closing balance Date Quantity Rate Amount Quantity Rate…

Q: CCC Partners is negotiating with its audit client, Muir Industries, for the audit fees for the…

A: According to section 142 of the Companies Act 2013, the pay of the company's auditors (other than…

Q: There were following activities occurred during the first month of Babara Schmidt's new hair cutting…

A: Assets = Liabilities + Equity

Q: What is the adjusted net income/loss in 2021? For net loss please put minus sign before the amount…

A: The net income for 2018, 2019 & 2020 has been provided. So the adjusted net income/loss of the…

Q: The following data were accumulated for use in reconciling the bank account of Nakajima Co. for…

A: The balance sheet represents the financial position of the company. It involves the assets,…

Q: The selling price for bonds is computed by calculating the present value of future cash receipts by…

A: A bond is a liability for the company on which the company would require to pay the interest until…

Q: 3 The bank statement opposite shows transactions over a one-month period for a savings account that…

A: Interest income: It implies to the revenue that is earned by the lender from lending funds to the…

Q: Bramble Company uses a flexible budget for manufacturing overhead based on direct labor hours.…

A: Flexible Budget: A budget that is based on a different volume of activities is called a Flexible…

Q: Jhonson Co. provided the following information regarding an automobile; Acquisition date April 1,…

A: "Since you have posted a question with multiple sub parts, we will solve first three sub-parts for…

Q: Inc. Balance Sheet March 31 Assets Cash $ 83,000 Accounts receivable Inventory 126,000 69,750…

A: Purchases = Cost of goods sold + Ending inventory - Beginning inventory

Q: Reported in the ledger of Mayumi Company On December 31, 2017, is a Patent account with a balance of…

A: Balance of patent as on 31 December 2017 = P 120,000 Useful life of an asset = 8 years Amount of…

Q: depletion expense should be recognized for 2021? 550,000

Q: Account

A: The account is a statement that records journal entries. In the double-entry system of accounting,…

Q: They Company owns land and building classified as investment property. The land and building is…

Q: P3,000,000. Of this total, P500,000 relates to current items. The entity also had deductible…

A: Tax expenses for a particular year is reported as : CURRENT TAX DEFERRED TAX

Q: What is the annual straight-line depreciation charge?

A: In straight line method of depreciation the depreciation amount is same in all the years of useful…

Q: w material purchases of $29,80 7,700 of raw material was on han

A: Raw material used during the month is the raw materials available less the raw material in hand at…

Q: A laboratory equipment costing ₱146,000 has a projected salvage value of ₱15,000 after 6 years of…

A: Depreciation is the amount of charge against the cost of a fixed asset to meet the obsolescence…

Q: Standard Direct Materials Cost per Unit Crazy Delicious Inc. produces chocolate bars. The primary…

A: Introduction: Direct materials are the fundamental components of produced goods. Businesses track…

Q: Assets are the O a. resources owned by the business. O b. personal property of the owners. O c. c.…

A: A business asset is an item or resources of a value owned by the company which can be tangible or…

Q: A printing machine initially costs ₱179,000. It can be sold for ₱15,000 at the end of its 10-year…

A: Depreciation: Depreciation means the reduction in the value of an asset over the life of the assets…

Q: On Jan. 1, Town Company purchased for P5,400,000, including appraiser fee of P50,000, a warehouse…

A: When group of assets are acquired at an single consideration then total purchase Value is your…

Concept explainers

Present Value

Present value (PV) is defined as the current or present value of all future sums of cash flow or money at a specified rate of return. This rate of return is known as the discounted rate, which is essentially the interest rate, discounted over some time. The expected cash flows are discounted at a discount rate to compute the present value. The higher the discount rate, the higher the future value (FV), but the lower the present value.

Question

How much would $50,000 due in 25 years be worth today if the expected rate were 5.5%? (Rounded)
1. $10,680 $12,456
2. $11,242 $13,112
3. $11,833

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions

How much would you invest today in order to receive $30,000 in each of the following (for further instructions on present value in Excel, see Appendix C): A. 20 years at 22% B. 12 years at 10% C. 5 years at 14% D. 2 years at 7%
If you invest $15,000 today, how much will you have in (for further instructions on future value in Excel, see Appendix C): A. 20 years at 22% B. 12 years at 10% C. 5 years at 14% D. 2 years at 7%
An investment of 1,000 produces a net cash inflow of 500 in the first year and 750 in the second year. What is the payback period? a. 1.67 years b. 0.50 year c. 2.00 years d. 1.20 years e. Cannot be determined
If you invest $12,000 today, how much will you have in (for further Instructions on future value in Excel, see Appendix C): A. 10 years at 9% B. 8 years at 12% C. 14 years at l5% D. 19 years at 18%
How much must be invested now to receive $50,000 for 8 years if the first $50,000 is received in one year and the rate is 10%?
Assume that an investment of 100,000 produces a net cash flow of 60,000 per year for two years. The discount factor for year 1 is 0.89 and for year 2 is 0.80. The NPV is a. 0 b. 6,800 c. 1,400 d. (4,000)