Answer:
Net present value of machine is $5,561
Explanation:
Net present value is the method of calculating net of cash inflows and outflows in present value term using discounting of the cash flow by required rate of return.
Net Present Value of the machine is $5,561
All the calculation and workings are attached with this question please find it.
This behavior best explained by Strain theory
Explanation:
Strain theory, in sociology, a hypothesis that pressure arising from social conditions, such as lack of income or lack of quality education, causes individuals to commit a crime. Strain theory describes deviant behavior as an unavoidable consequence of the experience of distressing individuals as they are deprived of the means of attaining cultural goals.
The central principle of general strain theory is that people who encounter pressure or stress are depressed or frustrated which can lead them to commit a crime to cope.
Answer:
B. Cost of goods sold will be too low by $5,000.
Explanation:
Overstatement in closing inventory has two effects. First in income statement, that the cost of goods sold is decreased by the same amount that is overstated. Second is overstatement of Inventory value in the asset section of balance sheet. According to the given scenario The effect of this event should be as cost of goods sold will be too low by $5,000.
The convexity of the bond is 61.810 and the duration of the bond is 7.330 years.
<u>Explanation</u>:
- A newly issued bond has a maturity of 10 years. It pays a 7.7% coupon rate. The coupon payments will receive each year. Using the coupon payments the year will be reduced.
- The maturity year will get reduced. So the duration of the bond is approximately 7.330 years. If the bond is sold at par value the convexity can be calculated using the number of years.
- So the convexity of the bond is 61.810.
Answer:
<u>A and B are correct</u>
Explanation :
- The TVM concept is based on the value of money which is today may change with time as a rise or fall in prices thus this explains why the interest rates are paid and calculated on the basis of the present values that may change such as future sum of money of cash flows, can get discontinued at the discounted rates.
- Future values can be ascertained based on the present value of the product/assert. Thus the interest rates and inflation rates change as the risks and the consumer's needs will always be present and have existed earlier.
- It's calculated by the present value and future value of money multiplied by the interest rate and the total number of years. I.e
- FV = PV x [ 1 + (i / n) ] (n x t)
