For the cash flows below, determine the amount in year 1, if the annual worth in years 1through 9 is $4000 and the interest rate is 12% per year.Year146.789.Cash,$1000AA+40 A+80A+120 A+160 A+200 A+240 A+280 A+320The amount in year 1 is $es

Annual Worth Net of all the benefits and costs incurred over a one-year period is called annual…

Answered: The amount in year 1 is $

Business

Accounting

The amount in year 1 is $

Financial Management: Theory & Practice

16th Edition

ISBN:9781337909730

Author:Brigham

Publisher:Brigham

Chapter4: Time Value Of Money

Section: Chapter Questions

Problem 1MC

See similar textbooks

Related questions

Q: How much is the Unearned Revenue at December 31,

A: A revenue is called earned when it is realised irrespective of its…

Q: On 7/1, the beginning balance in sales tax payable is a $50,000 credit. On 7/15, a $45,000 cash…

A: Liability means the amount which is to be paid to an outsider . When any liability is paid in cash ,…

Q: If EBITDA is 60000 OMR, depreciation is 2000 OMR, amortization is 1000 OMR, interest is 1500 OMR,…

A: EBITDA means Earnings Before Interest, Tax, Depreciation and Amortization Amortization is used to…

Q: e current year expires in 20 years and lue for 5 years. Additionally, research sts of $300,000 were…

A: An intangible asset is a non-physical asset that will be consumed over more than one accounting…

Q: In 2021, Ryan Management collected rent revenue for 2022 tenant occupancy. For financial reporting,…

A: Taxable income is the measurement of income which is used to calculate the amount of tax that needs…

Q: You are finishing your 3rd year in business with $516,000 of gross income and $270,000 in…

A: Given, 3rd year Gross income: $ 5,16,000 Deductions applicable in Current year: $ 2,70,000…

Q: On November 1, 2019, Holiday, Inc. received $16,000 that it would earn over the next 16 months.…

A: Revenue means the amount earned by selling the goods or services. Unearned revenue means the amount…

Q: In Q2 of 2022, Dogs Company made advertising expense amounting to P800,000. The said advertisement…

A: Accrual system of accounting says that every thing which is accrued has to be provided in books of…

Q: During the current year, Stern Company had pretax accounting income of $45 million. Stern's only…

A: Solution Taxable income is the income on which tax is paid by the tax payer to the government and…

Q: The following information is available for Marigold Corporation for 2020. 1. Depreciation…

A: Journal entry is the process of recording the business transactions in the books of accounts for the…

Q: . Adoptions and More drew on 8 annual notes totaling $250,000 to be paid upon completion of the…

A: Answer: Given 8 annual notes = $250,000 Payable next year = $ 75000

Q: A, a real estate dealer sold a house and lot for 600,000 on November 20, 2021. The cost of the…

A: Income calculation for 2021 Installment = 125,000/600,000 = 20.83% Total gain on sale of house =…

Q: How about these other questions? 4.Using the same information above, how much is the balance of the…

A: Construction work in progress means the cost related to the work in progress of each incomplete work…

Q: On March 16, 2022, BLUE Company paid property taxes of P375,000 on its building for calendar year…

A: Answer

Q: Calculate the taxable income for the following property: Annual NOI is $200,000, debt payments for…

A: Interest on debt and depreciation are tax deductible. These are need to be deduct from Annual NOI.…

Q: During the current year, Stern Company had pretax accounting income of $42 million. Stern's only…

A: The differences that may arise due to the variation between the value of assets and liabilities as…

Q: depreciation expense

A: Depreciation expense = (Cost or last fair value - Residual value)/Useful life in years

Q: The result of operation of MPG Corporation for 2018 whose taxable year is on a calendar year basis,…

A: The income tax credit means the tax credit a company gets when the company pays more tax than its…

Q: The following information is available for Remmers Corporation for 2020. 1. Depreciation reported…

A: a.Compute taxable income for 2020.

Q: b. The January 7, 2020, collection from Lomas Industries. Amount

A: T account: T account is a T-shaped appearance of the journal entries related to a specific account…

Q: Current liabilities include interest revenue received in advance, with a carrying amount if P1,000.…

A: Tax base is the value that is assessed for an item in balance sheet as per taxation of that…

Q: The following information has been obtained for Tamarisk Corporation. 1. Prior to 2020, taxable…

A: The bottom income statement starts with income before tax and it is adjusted by some additional…

Q: On January 1, 2019, Christian company took out a loan of 12,000,000 with an annual interest of 10%…

A: Interest on specific borrowing from 1st January to 31st October =10 months Interest =…

Q: What amount should Montague include as a provision in his financial statements for the year ended 31…

A: Answer

Q: e process of using the net worth method, ou find that the reported taxable income of a person is…

A: Requirement: In the given problem it is asked to calculate unexplained net worth increase or…

Q: The following information has been obtained for Sheridan Corporation. 1. Prior to 2020, taxable…

A: Introduction:- Individuals or enterprises (taxpayers) pay an income tax depending on their earnings…

Q: The following information is available for Marigold Corporation for 2020. 1. Depreciation…

A: Taxable Income=Income taxTax rate=29700040% =$742,500

Q: The Snella Company reports 2023 Pre-tax Net Income of $10,000. The following items exist:

A: Income tax is levied on income. The composition of total tax revenue earned from this taxation…

Q: The following information is available for Marigold Corporation for 2020. 1. Depreciation…

A: Taxable income = Income Tax / Tax Rate Pretax financial income = Taxable Income + Excess…

Q: n Q2 of 2022, Chix Company made advertising expense amounting to P800,000. The said advertisement…

A: Advertising Expenses: Advertising Expense is the account on the revenue statement that records the…

Q: 1. Prior to 2020, taxable income and pretax financial income were identical. 2. Pretax financial…

A: Pretax financial income = $1,359,000 Equipment Purchased = $1,260,000 Life = 5 years Depreciation on…

Q: What is the revenue earned from award credits for 2022? *see attached a. P 0 b. P 28,000 c. P…

A: Given, Total Sales for 3 years = P 2,800,000 Actual Warranty Expenditure = P 136,000 Total expected…

Q: Flip's Pizzeria Inc. has the following financial items for the current year: Adjusted Taxable Income…

A: SOLUTION- INTEREST EXPENSE DEDUCTION= [(30% * ADJUSTED TAXABLE INCOME BEFORE INTEREST) + BUSINESS…

Q: NCLCO is allowed as a deduction from business income for the next 3 succeeding years TRUE OR FALSE?

A: NOLCO:- Net Operating Loss Carried Over is a deduction allowed in gross income and which is allowed…

Q: Part 1 XYZ Co. at the end of 2018, its first year of operations, prepared a reconciliation between…

A: Deferred Income Tax (DIT):-It is a difference of amount between the method of computing taxable…

Q: The following information is available for Splish Corporation for 2020. 1. Depreciation reported…

A: Taxable income: Imposition of tax on income called taxable income. Taxes to be paid to Governments.

Q: A property is assessed at $135, 000. There is an equalization rate of 125%. The annual property tax…

A: Equalization rate is that the outcome of equalization method that sets the land tax base for the…

Q: Current liabilities include interest revenue received in advance, with a carrying amount if P1,000.…

A: Under Cash basis of taxation, income and expenses are recognized in the year when they are actually…

Q: Calculate the depreciation expense by sum-of-the-years'-digits for 2021.

A: Depreciation: Depreciation refers to the reduction in the monetary value of a fixed asset due to its…

Q: eight-year tax life. e project, the ass

A: Given information :

Q: r each transaction in the books of anuary, 20-.

A: Given: $75.00; cash sales slip no. 4923.$120.00; cash sales slip no. 4924.$58.60; invoice…

Q: The following information is for Apple Co. for 2019: 1. Depreciation reported on the tax return…

A: Computation of the Taxable Income for 2019 Income tax due per the tax return of 2019 = $2,400,000…

Q: 1. Pretax accounting income was S70 million and taxable income was $8 million for the year ended…

A: Journal entries refers to the process of systematic recording of the financial transactions of a…

Q: After making four quaterly estimated payments of $3,500, a corporation's actual income tax liability…

A: Income tax: Income tax is a tax levied on an individual’s income (taxable income). It is a direct…

Q: A machine is classified as seven-year MACRSproperty. Compute the book value for tax purposesat the…

A: MACRS stands for Modified Accelerated Cost Recovery System. For the purpose of tax, MACRS…

Concept explainers

Capital Gain

Any capital asset when sold can give the seller a higher or lower price from its purchase price leading to a capital gain or capital loss. The time period of holding an asset is decided based on if it is a long term or short-term capital gain. On that basis, the rate of taxation is decided if it is 20%, 15% or according to the tax brackets. The rate of taxation differs in the case of equity or debt, whether long or short term. The capital gain can be adjusted from capital loss to arrive at a net capital gain. The amount of gains and the exemption has to be reported in the tax return filed in the financial year in which the asset was transferred. The tax return can be filed quarterly, monthly, semi-annually or annually.

Question

For the cash flows below, determine the amount in year 1, if the annual worth in years 1
through 9 is $4000 and the interest rate is 12% per year.
Year
1
4
6.
7
8
9.
Cash,
$1000
A
A+40 A+80
A+120 A+160 A+200 A+240 A+280 A+320
The amount in year 1 is $
es

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

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)
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
Brook Corporation’s free cash flow for the current year (FCF0) was $3.00 million. Its investors require a 13% rate of return on (WACC = 13%). What is the estimated value of operations if investors expect FCF to grow at a constant annual rate of (1) −5%, (2) 0%, (3) 5%, or (4) 10%?
For the cash flows shown, determine the value of G that makes the present worth in year 0 equal to $14,000. The interest rate is 10% per year.Year 0 1 2 3 4 Cash flow, $ per year — 8000 8000-G 8000-2G 8000-3G
For the cash flows below determine the amount in year 1, if the annual worth in years 1 through 9 is $3500 and the interest rate is 10% per year
In a geometric sequence of annual cash flows starting at the end of year zero, the value of A at e zero(Ao) is $1304.35( which is cash flow). The value of the last term in the series, A10 is $5276.82 what is equivalent value for A for year 1-10? Interest is 10%.
For the cash flows shown, calculate the equivalent annual worth in years 1 through 4 at an interest rate of 10% per year. Year 0 1 2 3 4 Cash Flow, $ 250,000 275,000 300,000 325,000 375,000
In a geometric sequence of annual cash flows starting at the EOY zero, the value of A0 is $1,304.35 (which is a cash flow). The value of the last term in the series, A10, is $5,276.82. What is the equivalent value of A for years 1 through 10? Let i = 20% per year.
In a geometric sequence of annual cash flows starting at the EOY zero, the valueof A0 is $65,217.50 (which is a cash flow). The value of the last term in the series,A10, is $263,841. What is the equivalent value of A for years 1 through 10? Let i= 20% per year.
What is the present value of a stream of cash flows, which has the timeline given below.(After year 11, all cash flows are $500)Discount rate is 10%. CF $850 850 850 850 500 500 500 750 700 500 500…….Year 0 1 2 3 4 5 6 7 8 9 10 11…….
For the cash flows shown, find the value of x that makes the equivalent annual worth in years 1 through 7 equal to $300 per year. Use an interest rate of 10% per year. Year Cash Flow, $ Year Cash Flow, $ 0 x 4 300 1 300 5 300 2 300 6 300 3 300 7 x
What is the present value of the following set of cash flows at an interest rate of 8% p.a. compounded annually? End of Year 1 $1,150 End of Year 2 $2,300 End of Year 3 $5,100 Select one: a. $7,401.20 b. $7,085.23 c. $8,550.00 d. $7,805.23