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Galina-37
1 day ago
6

Tom Adams has received a job offer from a large investment bank as a clerk to an associate banker. His base salary will be $59,0

00. He will receive his first annual salary payment one year from the day he begins to work. In addition, he will get an immediate $15,000 bonus for joining the company. His salary will grow at 3.9 percent each year. Each year he will receive a bonus equal to 10 percent of his salary. Mr. Adams is expected to work for 20 years. What is the present value of the offer if the discount rate is 10 percent?
Business
1 answer:
Scilla [3.5K]1 day ago
3 0
The present value of the offer is $739,018.03 The cash flows mentioned, spanning from the end of year 1 to the end of year 20, form a growing annuity for 20 years. The present value formula for a growing annuity is as follows: PV= where P represents the annuity payment in the first year, i is the interest rate per period, g is the growth rate, and n denotes the number of payment periods. The first year’s P is the base salary of $59,000 along with a 10% bonus of $5,900, totaling $64,900; g is 3.9%; i=0.1, and n=20. The present value of the offer equals 15,000 received immediately plus the present value of the growing annuity = 739,018.03.
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Jamison Company has the following obligations at December 31: For each obligation, indicate whether it should be classified as a
marusya05 [3428]

Answer:

Explanation:

Current liabilities refer to obligations due within one year or less.

The classification is as follows:

a. A note payable for $100,000 due in 2 years. = Not classified as a current liability, as it is due in 2 years and classified as long-term liability.

b. A 10-year mortgage of $300,000 to be paid in ten annual payments of $30,000. = Only the first payment is a current liability; the rest are long-term liabilities.

c. An interest payment of $15,000 on the mortgage. = This is a current liability since it is due within one year.

d. Accounts payable of $60,000. = This is also a current liability because it is due within one year.

Current liabilities are recorded on the liability side of the balance sheet.

7 0
1 month ago
Washington Inc. issued $846,000 of 6%, 20-year bonds at 98 on January 1, 2009. Through January 1, 2017, Washington amortized $9,
harina [3514]

Answer:

The bond discount at issuance is calculated as follows: $846,000 - ($846,000/100 *98)

The bond discount upon issuance is $846,000 minus $829,080

Thus, the bond discount at issuance equals $16,920

Bond Payable = $846,000

The un-amortized bond discount calculates to $16,920 - $9,840

This gives an un-amortized bond discount of $7,080

The redemption value of the bond is determined by 102/100 * $846,000

Thus, the redemption value of the bond is $ 862,920

Finally, the loss on bond retirement is given by the difference between the redemption value and (Bond Payable - Un-amortized bond discount)

Loss on retirement of the bond = $862,920 - ($846,000 - $7,080)

The loss on retirement of the bond calculates to $862,920 - $838,920

This results in a loss of $24,000

4 0
4 days ago
In early 2008, you purchased and remodeled a 120-room hotel to handle the increased number of conventions coming to town. By mid
soldi70 [3439]

Answer:

To tackle this issue, let's begin by calculating the total expenses:

Total expenses = Capital expenses + Capital cost

Total expenses = $20 M + 0.10 * $20 M

Total expenses = $22 M

The break-even price reflects when total income matches total expenses. Thus:

$15 M + 20,000 * X = $22 M

Where X indicates the break-even cost per room for one night

Calculating for X:

20,000 * X = $7 M

X = $350

Thus, the break-even rate is $350 per room for one night.

Explanation:

Mark as brainiest

5 0
25 days ago
Rather than acquire an existing textile manufacturer in Jakarta, FauxFabric Inc. chose to establish new operations in Indonesia.
soldi70 [3439]

Answer: (A) Greenfield investment

Explanation:

 A greenfield investment is a form of Foreign Direct Investment (FDI) aimed at constructing various new production facilities within a business.

The primary aim of the greenfield investment method is to provide investors with control while creating diverse opportunities for managing market partnerships.

Based on the provided question, the greenfield investment method is instrumental in establishing new operations in Indonesia, thus representing a type of foreign direct investment.

Therefore, Option (A) is the correct selection.

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