Homework Answers
Ans:-First, we need to find the future value of the simple annuity.
The formula to calculate the future value of simple annuities is
Future value of annuity = P*{((1+r)^n-1)/r}, where P is the periodic payment, r is the rate per annum, n is the number of periods
FV of option1 = 500*{((1+0.00833)^24-1)/0.00833} = 13222.93 ( r = 0.10/12 = 0.00833)
FV of option 2 =515*{((1+0.004166)^24-1)/0.004166) = 12970.64. ( r = 0.05/12 =0.004166)
FV of option 3 = 475*{((1+0.0125)^24-1)/0.0125)= 13199.34. ( r = 0.15/12 =0.0125)
FV of option 4 =450*{((1+0.0166)6)^24-1)/0.0166) =13136.105.( r = 0.20/12 = 0.0166)
From the above calculation option, 1 is the best possible option based on the future value of the simple annuity because it will yield the highest value.
Note:- Please give thumbs up if this answer helps you thank you.
Add Answer to:
Question 2 Incorrect Mark 0.00 out of 5.00 P Flag question Instruction Fill in the blanks....
4:07 ! 0.29 K/s 0.77 23% – 't November 29, 2019 Question 2 Not complete Marked...
4:07 ! 0.29 K/s 0.77 23% – 't November 29, 2019 Question 2 Not complete Marked out of 5.00 P Flag Instruction: Fill in the blanks. Do not use thousand seperator, use 2 decimal places only Which among the following (simple) annuities will you choose based on the future value? Option 1 Option 2 Option 3 Option 4 500 515 475 450 rate per annum 10.00% 5.00% 15.00% 20.00% payments per year 12 t(years) Question 12 The best option is...
Instruction: Fill in the blanks. Do not use thousand seperator, use 2 decimal places only. Which...
Instruction: Fill in the blanks. Do not use thousand seperator, use 2 decimal places only. Which among the following (general) annuities will you choose based on the future value? Option 2 325 10.00% Option 3 375 10.00% Option 1 350 10.00% period t (years) 4 compounded 2 12 12 12 The best option is number
Instruction: Fill in the blanks. Do not use thousand seperator, use 2 decimal places only. Which...
Instruction: Fill in the blanks. Do not use thousand seperator, use 2 decimal places only. Which among the following (simple) annuities will you choose based on the future value? Option 2 Option 1 Option 3 175 Option 4 150 100 200 2.00% 8.00% 12.00% 4.00% i 12 12 12 period 12 2 t (years) 2 24 24 24 24 In The best option is number
Question 17 Incorrect Mark 0.00 out of 4.00 P Flag question Inventory Turnover and Days' Sales...
Question 17 Incorrect Mark 0.00 out of 4.00 P Flag question Inventory Turnover and Days' Sales in Inventory W. Glass & Company reported the following information in its recent annual report: 2018 2019 Cost of goods sold $4,000,000 $4,600,000 Beginning inventory 880,000 860,000 Ending inventory 860,000 760,000 Calculate the company's inventory turnover and days' sales in inventory for both years. Round answers to two decimal places. Use rounded answers for subsequent calculations. 2018 2019 80 X 0 Inventory turnover Days'...
Question 1 Incorrect Mark 0.00 out of 3.00 P Flag question High-Low Method The highest and...
Question 1 Incorrect Mark 0.00 out of 3.00 P Flag question High-Low Method The highest and lowest levels of activity for the Felton Company were 58,000 direct labor hours and 42,000 direct labor hours, respectively. Maintenance costs were $420,000 at the 58,000-hour level and $380,000 at the 42,000-hour level. Compute the maintenance cost formula Total cost = $ 412,500 x +($ 3.75 x x direct labor hours) What cost might we expect at an operating level of 52,000 direct labor...
Question 4 Incorrect Mark 0.00 out of 1.00 P Flag question Variable and Absorption Costing Pyne...
Question 4 Incorrect Mark 0.00 out of 1.00 P Flag question Variable and Absorption Costing Pyne Company produces a single product. The company has 60,000 units in its ending inventory. Pyne's variable production costs during the year were $10 per unit and fixed manufacturing overhead costs were applied at $25 per unit (which was the same as last year). The company's net operating income is $135,000 higher under variable costing than it is under absorption costing and the company uses...
Question 1 Incorrect Mark 0.00 out of 1.00 F Flag question Edit question Stage 1 ABC...
Question 1 Incorrect Mark 0.00 out of 1.00 F Flag question Edit question Stage 1 ABC at a College: Assigning Costs to Activities An economics professor at Prince Town University devotes 50 percent of her time to teaching, 35 percent of her time to research and writing, and 15 percent of her time to service activities such as committee work and student advising. The professor teaches two semesters per year. During each semester, she teaches one section of an introductory...
Question 3 Incorrect Mark 0.00 out of 1.00 P Flag question Identify and Compute NOPAT Following...
Question 3 Incorrect Mark 0.00 out of 1.00 P Flag question Identify and Compute NOPAT Following is the income statement for Lowe's Companies Inc. LOWE'S COMPANIES INC. Consolidated Statement of Earnings Twelve Months Ended (in millions) Feb. 1, 2019 Net sales $71,309 Cost of sales 48,401 Gross margin 22,908 Expenses Selling general and administrative 17,413 Depreciation and amortization Operating income 4,018 Interest expense, net 624 Pretax earnings 3,394 Income tax provision 1,080 Net earnings $2,314 Compute its net operating profit...
eBook A Prin Question 2 incorrect Mark 0.00 out of 200 P Flag question Determining Carrying...
eBook A Prin Question 2 incorrect Mark 0.00 out of 200 P Flag question Determining Carrying Value and Amortization of Intangible Assets Review the following information pertaining to Denzel Company, 1. A patent was purchased on January 2, 2018, for $104,000 when the remaining legal life was 16 years. On January 2, 2020, Denzel determined that the remaining useful life of the patent was only eight years from the date of its acquisition 2. On January 1, 2020, Denzel Company...
Question 3 Incorrect Mark 0.00 out of 3.00 P Flag question NPV: Taxes and Accelerated Depreciation...
Question 3 Incorrect Mark 0.00 out of 3.00 P Flag question NPV: Taxes and Accelerated Depreciation Assume that United Technologies is evaluating a proposal to change the company's manual design system to a computer-aided design (CAD) system. The proposed system is expected to save 10,000 design hours per year; an operating cost savings of $40 per hour. The annual cash expenditures of operating the CAD system are estimated to be $200,000. The CAD system requires an initial investment of $500,000....
4:07 ! 0.29 K/s 0.77 23% – 't November 29, 2019 Question 2 Not complete Marked out of 5.00 P Flag Instruction: Fill in the blanks. Do not use thousand seperator, use 2 decimal places only Which among the following (simple) annuities will you choose based on the future value? Option 1 Option 2 Option 3 Option 4 500 515 475 450 rate per annum 10.00% 5.00% 15.00% 20.00% payments per year 12 t(years) Question 12 The best option is...
Instruction: Fill in the blanks. Do not use thousand seperator, use 2 decimal places only. Which among the following (general) annuities will you choose based on the future value? Option 2 325 10.00% Option 3 375 10.00% Option 1 350 10.00% period t (years) 4 compounded 2 12 12 12 The best option is number
Instruction: Fill in the blanks. Do not use thousand seperator, use 2 decimal places only. Which among the following (simple) annuities will you choose based on the future value? Option 2 Option 1 Option 3 175 Option 4 150 100 200 2.00% 8.00% 12.00% 4.00% i 12 12 12 period 12 2 t (years) 2 24 24 24 24 In The best option is number
Question 17 Incorrect Mark 0.00 out of 4.00 P Flag question Inventory Turnover and Days' Sales in Inventory W. Glass & Company reported the following information in its recent annual report: 2018 2019 Cost of goods sold $4,000,000 $4,600,000 Beginning inventory 880,000 860,000 Ending inventory 860,000 760,000 Calculate the company's inventory turnover and days' sales in inventory for both years. Round answers to two decimal places. Use rounded answers for subsequent calculations. 2018 2019 80 X 0 Inventory turnover Days'...
Question 1 Incorrect Mark 0.00 out of 3.00 P Flag question High-Low Method The highest and lowest levels of activity for the Felton Company were 58,000 direct labor hours and 42,000 direct labor hours, respectively. Maintenance costs were $420,000 at the 58,000-hour level and $380,000 at the 42,000-hour level. Compute the maintenance cost formula Total cost = $ 412,500 x +($ 3.75 x x direct labor hours) What cost might we expect at an operating level of 52,000 direct labor...
Question 4 Incorrect Mark 0.00 out of 1.00 P Flag question Variable and Absorption Costing Pyne Company produces a single product. The company has 60,000 units in its ending inventory. Pyne's variable production costs during the year were $10 per unit and fixed manufacturing overhead costs were applied at $25 per unit (which was the same as last year). The company's net operating income is $135,000 higher under variable costing than it is under absorption costing and the company uses...
Question 1 Incorrect Mark 0.00 out of 1.00 F Flag question Edit question Stage 1 ABC at a College: Assigning Costs to Activities An economics professor at Prince Town University devotes 50 percent of her time to teaching, 35 percent of her time to research and writing, and 15 percent of her time to service activities such as committee work and student advising. The professor teaches two semesters per year. During each semester, she teaches one section of an introductory...
Question 3 Incorrect Mark 0.00 out of 1.00 P Flag question Identify and Compute NOPAT Following is the income statement for Lowe's Companies Inc. LOWE'S COMPANIES INC. Consolidated Statement of Earnings Twelve Months Ended (in millions) Feb. 1, 2019 Net sales $71,309 Cost of sales 48,401 Gross margin 22,908 Expenses Selling general and administrative 17,413 Depreciation and amortization Operating income 4,018 Interest expense, net 624 Pretax earnings 3,394 Income tax provision 1,080 Net earnings $2,314 Compute its net operating profit...
eBook A Prin Question 2 incorrect Mark 0.00 out of 200 P Flag question Determining Carrying Value and Amortization of Intangible Assets Review the following information pertaining to Denzel Company, 1. A patent was purchased on January 2, 2018, for $104,000 when the remaining legal life was 16 years. On January 2, 2020, Denzel determined that the remaining useful life of the patent was only eight years from the date of its acquisition 2. On January 1, 2020, Denzel Company...
Question 3 Incorrect Mark 0.00 out of 3.00 P Flag question NPV: Taxes and Accelerated Depreciation Assume that United Technologies is evaluating a proposal to change the company's manual design system to a computer-aided design (CAD) system. The proposed system is expected to save 10,000 design hours per year; an operating cost savings of $40 per hour. The annual cash expenditures of operating the CAD system are estimated to be $200,000. The CAD system requires an initial investment of $500,000....
Most questions answered within 3 hours.
-
Part 1- Inventory: You own a toy company and
you are producing wooden rocking horses. Assume...
asked 4 minutes ago -
What is aromaticity?
Identify aromatic molecules, especially those containing O, N,
S and B
asked 7 minutes ago -
A rubber solid circular wheel of uniform density spins about it
axis at rate of 60...
asked 18 minutes ago -
DNA evidence from an early human skeleton in Britain, shows that
early inhabitants of were blue...
asked 9 minutes ago -
Financial data for Joel de Paris, Inc., for last year
follow:
Joel de Paris, Inc.
Balance...
asked 18 minutes ago -
To practice Problem-Solving Strategy 19.1 Work in Ideal-gas
Processes.
A cylinder with initial volume V contains...
asked 27 minutes ago -
Depreciation for Partial Periods Bean Delivery Company purchased
a new delivery truck for $35,400 on April...
asked 31 minutes ago -
Q 5.23:
Jonathan has been doing calculations to determine a missing
component. So far he has...
asked 29 minutes ago -
Use indifference curve and the daily income-leisure choice model
to explain graphically the behavior of employees...
asked 49 minutes ago -
Record the following transactions of Fashion Park in a
general journal. Fashion Park must charge 8...
asked 49 minutes ago -
Chapter 08 Python Assignment: Question 1-5
Please I need help in my python course.
Question 1...
asked 54 minutes ago -
1.
In a study of the effectiveness of
a new pain killer,
4646
out of
821821...
asked 1 hour ago