What is the present value of 10 equal payments of $22,500 to be made at the end of each year for the next 10 years? the annual interest rate is 10%. (fv of $1, pv of $1, fva of $1, and pva of $1) (use the appropriate factor(s) from the tables provided. round your answer to the nearest whole dollar.)

b.

global stores is downsizing and must let some employees go. employees volunteering to leave are being offered a severance package of $120,000 cash, another $131,000 to be paid in one year, and an annuity of $29,500 to be paid each year for seven years with the first payment coming at the end of this year. (fv of $1, pv of $1, fva of $1, and pva of $1) (use the appropriate factor(s) from the tables provided. round your answer to nearest whole dollar.)

what is the present value of the total severance package, assuming an annual interest rate of 6%? \

c.

you have just won the state lottery and have two choices for collecting your winnings. you can collect $107,000 today or receive $20,500 at the end of each year for the next seven years. a financial analyst has told you that you can earn 8% on your investments.

calculate the present value of both the options (fv of $1, pv of $1, fva of $1, and pva of $1) (use the appropriate factor(s) from the tables provided. round your answers to nearest whole dollar.)

d.

an investment will pay $15,000 at the end of each year for eight years and a one-time payment of $150,000 at the end of the eighth year. (fv of $1, pv of $1, fva of $1, and pva of $1) (use the appropriate factor(s) from the tables provided.)

determine the present value of this investment using a 7% annual interest rate. (round your answer to the nearest whole dollar.)

Fred smithers, a recent college graduate decided to open his own portable juice bar, smithers smoothies, to wheel around newport beach. you, a trusted friend of fred, are a business major that has also recently graduated and agreed to handle the books for a while to get some practical experience and have a favor that you can ask of fred in the future. given the following five transactions concerning the new venture, prepare the necessary journal entries for the transactions, post the journal entries to appropriate t accounts and prepare a trial balance as of the end of the month in order to answer to the necessary may 2: fred invests $12,000 of his own money to start the new company. this money was obtained from a part-time job working at a legal firm while he was in school. may 3: fred spent $5,100 cash to purchase a refrigerated trailer that he can pull behind his car and set up at the beach. under your advice, fred agrees to place the new asset under an account called "equipment." may 6: fred bought $640 of supplies on account from the flav-o-rite confectioners company. because they will last longer than a single accounting period fred agrees to record them as, "supplies" as per your suggestion. may 13: fred sat on the beach for six hours without a single sale and was feeling very down. right before he left, however, a plumber escorting his family reunion along the beach stopped by his stand and bought $800 worth of smoothies for the entire family. under your advice, fred agrees to call this cash revenue, "sales." may 15: excited about his new venture, fred withdraws $350 from the company to take his girlfriend out to dinner. what would be the balance in the cash account at the end of the period following the posting of all the transactions?

You are purchasing a bond that currently sold for $985.63. it has the time-to-maturity of 10 years and a coupon rate of 6%, paid semi-annually. the bond can be called for $1,020 in 3 years. what is the yield to maturity of this bond?

Engberg company installs lawn sod in home yards. the company’s most recent monthly contribution format income statement follows: amount percent of sales sales $ 80,000 100% variable expenses 32,000 40% contribution margin 48,000 60% fixed expenses 38,000 net operating income $ 10,000 required: 1. compute the company’s degree of operating leverage. (round your answer to 1 decimal place.) 2. using the degree of operating leverage, estimate the impact on net operating income of a 5% increase in sales. (do not round intermediate calculations.) 3. construct a new contribution format income statement for the company assuming a 5% increase in sales.