onsider the following schedule: (Same Schedule as problém 8, Pepeated agan nere) nnual withdrawal of $500 for ten years Deposit of 10,000 at year 1 Another deposit of 15,000 at year 5. What is the equivalent future worth of above schedule? $31,392 B $34,392

onsider the following schedule: (Same Schedule as problém 8, Pepeated agan nere) nnual withdrawal of $500 for ten years Deposit of 10,000 at year 1 Another deposit of 15,000 at year 5. What is the equivalent future worth of above schedule? $31,392 B $34,392

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter11: Capital Budgeting Decisions

Section: Chapter Questions

Problem 3PB: Use the tables in Appendix B to answer the following questions. A. If you would like to accumulate...

See similar textbooks

Related questions

Q: Information for Duncan Corporation is shown below: 20X1 Net Income ₱ 400,000 Average Inv...

A: Formula: Capital Turnover = Sales Revenue/Average Investment

Q: The following data were taken from the records of Westbrooks Company: INVENTORIES Aug. 31, 2020 ...

Q: Using the DCF approach, what is its cost of common equity? Do not round intermediate calculations. R...

A: As per our protocol we provide solution to the one question only but you have asked multiple questio...

Q: a. An analysis of WTI' Insurance policies shows that $2,400 of coverage has expired. b. An Inventory...

A: Adjusted trial balance is prepared by management for its own use. It is not part of financial statem...

Q: Carlos is a resident citizen. He maintains a savings account deposit with the BPI-Baguio City Branch...

A: Solution Given Carlos is a resident citizen Interest income from saving account deposit =6000 F...

Q: Information for Duncan Corporation is shown below: 20X1 Net Income ₱ 400,000 Average Inv...

A: Sales margin = Net income / sales revenue where, Net Income = Total revenue - Total expenses

Q: ,500 into a bank account that paid an interest rate of 5.5 ths. Find the interest earned after 3 yea...

A: Interest earned = Future Value of sum - Principal amount Future Value = P *(1*i)^n Principal amount ...

Q: Barton Industries expects next year's annual dividend, D1, to be $2.50 and it expects dividends to g...

A: Cost of Retained Earnings: The cost of retained profits is the expense to a firm of funds that have ...

Q: RAMCO had revenue of $250,000, total expenses of $200,000, and it paid dividends of $20,000. Based...

Q: Barton Industries estimates its cost of common equity by using three approaches: the CAPM, the bond-...

A: CAPM = Risk free rate + beta * market risk premium Bond yield plus risk premium = Bond yield + risk ...

Q: You make deposits of $300 each year for the next 17 years at 5 % compounded annually. How much is in...

A: Annual deposit (P) = $300 Interest rate (r) = 5% Period (n) = 17 Years

Q: On September 30, ABC paid employee salaries of $7,000, including $1,000 it owed to its employees las...

A: Introduction:- The following balance sheet (Accounting) equation used as follows under:- Assets = Li...

Q: San Jose Company operates a Manufacturing Division and an Assembly Division. Both divisions are eval...

A: When it is related to transfer price, (a) When the full capacity is not utilized, then variable pric...

Q: Davis Corporation reported the following for the month of November: Total hourly wages of plant wor...

A: Note: Administrative and Advertising expenses are not included in the cost of inventory. These expen...

Q: a) What factors should be considered in determining the issue price of a debenture. On 1 July 20...

Q: The following standards for variable overhead have been established for a company that makes only on...

A: Variable overhead efficiency variance = (standard hours allowed - actual hours worked) x standard Va...

Q: 9. Two machinery alternatives are described below. Complete the table below, assuming an interest ra...

Q: Which costs will change with a decrease in activity within the relevant range? Unit variable cost an...

A: Cost can be classified into two categories i.e fixed cost and variable cost. The fixed cost remains ...

Q: Company Healthy produces two main products: Daily vitamins and prenatal vitamins. They use ac Monthl...

Q: What is the double entry system in accounting?

A: Solution Note : Dear student as per the Q&A guideline we are required to answer the first questi...

Q: On October 1. Ebony Ernst organızed Ernst Consulting: on October 3. the owner contributed $84,580 in...

A: Net income = Total Revenue - Total expenses

Q: Unit cost $ 53 agna is expected to sell all of 40,000 units produced to its regular customers for a ...

A: Solution given Maximum capacity 40000 units Variable manufacturing $30 Variable sell...

Q: The unadjusted Trial Balance Columns of a worksheet total $85,500. The Adjustments columns contain e...

A: Introduction:- Unadjusted trial balance contains list of all the general ledger balances before maki...

Q: QUESTION 2 a) Amirah received a 130-day promissory note at 5% simple interest rate on 10 May 2021. S...

A: A promissory note is referred to as the financial instrument which is exchanged between two parties...

Q: Required information Use the following information to answer questions. (Algo) [The following inform...

Q: Sage sells its specialty combination gas/wood-fired grills to local restaurants. Each grill is sold ...

A: Financial transactions are initially recorded in the form of journal entries by the company.

Q: Required Information Use the following information for exercise 15 to 18 LO P2 [The following inform...

A: The income statement is prepared to record revenues and expenses for the current period and find net...

Q: В. Canto Merchandising sells facsimile, copiers and other types of office equipment. Transactions du...

A: Journal entry - It refers to the process where the business transactions are recorded in the books o...

Q: An individual is planning to take an 800-mile trip between two large cities. Three possibilities exi...

A: Individual is ready to pay $ 30 per hour saved Air costs = $ 600 , Time = 8 hours Rail costs = $ 450...

Q: Net Carrying Amount of machineries are part of the net operating working capital True False

A: Solution Note Dear student as per the Q&A guideline we are required to answer the first question...

Q: Problem 13-10 (AICPA Adapted) On September 30, 2021, a fire destroyed most of the merchandise invent...

A: SOLUTION WORKING NOTES GROSS PROFIT RATE ON COST = (2250000/6750000)*100 = 33.33% PERCENTAGE FOR SAL...

Q: iness. For example, Coca‐Cola has announced that it wants to buy China Huiyuan Juice Gr

A: The details are discussed as follows

Q: QUESTION 1 RM3,500 was deposited into an account on 12 July 2020. If the simple interest rate was 4....

A: Simple interest is the method which helps in calculating the interest for a principal amount for a p...

Q: Nowitzki Corporation sells sets of encyclopedias. Nowitzki sold 4,000 sets last year at ₱25,000 a se...

A: Contribution margin: Difference between the sales and the variable costs is called contribution marg...

Q: After preparing and posting the closing entries for revenues and expenses, the income summary accoun...

A: The closing entries are prepared to close the temporary accounts of the business including revenue, ...

Q: The Sanding Department of Quik Furniture Company has the following production and manufacturing cost...

A: In this question, we have to make a production cost report For making it we need to first make as w...

Q: Information for Duncan Corporation is shown below: 20X1 Net Income ₱ 400,000 Average Inv...

A: Return on investment (ROI) = Net Income / Average Investment where, Average Investment = (Beginning...

Q: I don't understand how to get the percentage for the Sales to start off.... Income statement inf...

A: For vertical analysis of income statement, the accounts of income statement are compared with the sa...

Q: The following data summarize the operations during the year. A. Purchase of raw materials on account...

A: Journal entry A journal entry is the act of maintaining or producing records of any economic or non-...

Q: Laflame Corporation uses a job-order costing system with a single plantwide predetermined overhead r...

A: Total estimated manufacturing overhead includes fixed manufacturing cost and variable manufacturing ...

Q: Mr. Lim ran for a government position during the country’s 2019 elections. He received campaign fund...

A: Answer: Campaign fund donations = Php 100 M Campaign related expenses = Php 75M Excess funds = Php 2...

Q: When closing overapplied manufacturing overhead to Cost of Goods Sold, which of the following would ...

A: When closing overapplied manufacturing overhead to Cost of Goods Sold, Gross profit will increase. ...

Q: Bucao, Basco, and Blanco share profits and losses in the ratio of 2:3:5, respectively. Their partne...

A: The partnership comes into existence when two or more persons agree to do the business and further s...

Q: Butrico Manufacturing Corporation uses a standard cost system, records materials price variances whe...

A: Answer - Direct Materials Price Variance - Direct material price variance is the difference betwee...

Q: On December 31, 2021 what is the adjusted cash in bank? In an audit of Danao Company on Dec. 31, 202...

A: Answer - Adjusted Book Balance - A bank reconciliation is a schedule each company prepares to re...

Q: The monthly income statement for Jordan Stores is given below: 1st Branch 2nd Branch To...

A: Segment Reporting: When a company's operational segments are reported in the financial statements th...

Q: The Clarke Chemical Company produces a special kind of body oil that is widely used by professional ...

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

Q: 2010 Casey made a taxable gift of $5.7 million to both Stephanie and Linda (a to quired: Iculate the...

A: A gift tax is a tax imposed on cash or assets given by one person or corporation to another. A gift ...

Q: What are the main types of decisions made by the financial managers of a company?

A: FINANCIAL manager are managers responsible for important decisions in the company and responsible ...

Q: Kenzie Company purchased a 3-D printer for $597,000. Although this printer is expected to last for t...

A: Depreciation- A depreciation term refers to reduce or fall in the price of tangible assets till its ...

Question

Answer the first picture question please. I posted the other question because it's based upon it.

Consider the following schedule: (Same Schedule as problem 8, repeated again here) number of years =10; annual interest rate 6%
Annual withdrawal of $500 for ten years
Deposit of 10,000 at year 1
Another deposit of 15,000 at year 5.
What is the equivalent future worth of above schedule?
A) $31,392
$34,392
C) $32,392
D) $33,392

You wish to accumulate $2,000,000 in 40 years. If 40 end-of year deposits are made into an account
earning 6% interest annually, what size deposit is required each year to meet your objective?
A) $10,000
B) $13,000
C) $11,000
D $12,000

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

You put $250 in the bank for S years at 12%. A. If interest is added at the end of the year, how much will you have in the bank after one year? Calculate the amount you will have in the bank at the end of year two and continue to calculate all the way to the end of the fifth year. B. Use the future value of $1 table in Appendix B and verity that your answer is correct.
Use the tables in Appendix B to answer the following questions. A. If you would like to accumulate $4,200 over the next 6 years when the interest rate is 8%, how much do you need to deposit in the account? B. If you place $8,700 in a savings account, how much will you have at the end of 12 years with an interest rate of 8%? C. You invest $2,000 per year, at the end of the year, for 20 years at 10% interest. How much will you have at the end of 20 years? D. You win the lottery and can either receive $500,000 as a lump sum or $60,000 per year for 20 years. Assuming you can earn 3% interest, which do you recommend and why?
You put $600 in the bank for 3 years at 15%. A. If Interest Is added at the end of the year, how much will you have in the bank after one year? Calculate the amount you will have in the bank at the end of year two and continue to calculate all the way to the end of the third year. B. Use the future value of $1 table In Appendix B and verify that your answer is correct.
(1) What is the value at the end of Year 3 of the following cash flow stream if the quoted interest rate is 10%, compounded semiannually? (2) What is the PV of the same stream? (3) Is the stream an annuity? (4) An important rule is that you should never show a nominal rate on a time line or use it in calculations unless what condition holds? (Hint: Think of annual compounding, when INOM = EFF% = IPER.) What would be wrong with your answers to parts (1) and (2) if you used the nominal rate of 10% rather than the periodic rate, INOM/2 = 10%/2 = 5%?
Define the stated (quoted) or nominal rate INOM as well as the periodic rate IPER. Will the future value be larger or smaller if we compound an initial amount more often than annually—for example, every 6 months, or semiannually—holding the stated interest rate constant? Why? What is the future value of $100 after 5 years under 12% annual compounding? Semiannual compounding? Quarterly compounding? Monthly compounding? Daily compounding? What is the effective annual rate (EAR or EFF%)? What is the EFF% for a nominal rate of 12%, compounded semiannually? Compounded quarterly? Compounded monthly? Compounded daily?
Use the tables in Appendix B to answer the following questions. A. If you would like to accumulate $2,500 over the next 4 years when the interest rate is 15%, how much do you need to deposit in the account? B. If you place $6,200 in a savings account, how much will you have at the end of 7 years with a 12% interest rate? C. You invest $8,000 per year for 10 years at 12% interest, how much will you have at the end of 10 years? D. You win the lottery and can either receive $750,000 as a lump sum or $50,000 per year for 20 years. Assuming you can earn 8% interest, which do you recommend and why?
You want to invest $8,000 at an annual Interest rate of 8% that compounds annually for 12 years. Which table will help you determine the value of your account at the end of 12 years? A. future value of one dollar ($1) B. present value of one dollar ($1) C. future value of an ordinary annuity D. present value of an ordinary annuity