### How much place plus should be willing to pay consulting firm

Assignment Help Accounting Basics
##### Reference no: EM13872654

The Place-Plus real estate development firm in Problem 24 is dissatisfied with the economist's estimate of the probabilities of future interest rate movement, so it is considering having a finan- cial consulting firm provide a report on future interest rates. The consulting firm is able to cite a track record which shows that 80% of the time when interest rates declined, it had predicted they would, whereas 10% of the time when interest rates declined, the firm had predicted they would remain stable and 10% of the time it had predicted they would increase. The firm has been cor- rect 70% of the time when rates have remained stable, whereas 10% of the time it has incorrectly predicted that rates would decrease, and 20% of the time it has incorrectly predicted that rates would increase. The firm has correctly predicted that interest rates would increase 90% of the time and incorrectly predicted rates would decrease 2% and remain stable 8% of the time. Assuming that the consulting firm could supply an accurate report, determine how much Place- Plus should be willing to pay the consulting firm and how efficient the information will be.

#### Explaining the credit terms

The company gets all of its merchandise from a supplier in Minnesota and always buys on credit with credit terms of 2/10, n/30. Which statement below best explains the credi

#### Problem regarding the statistics software

A Statistics professor has observed that for several years about 13% of the students who initially enroll in his Introductory Statistics course withdraw before the end of th

#### Prepare consolidation worksheet entry

Prepare Consolidation Worksheet Entry E at December 31, 2016 - Prepare Consolidation Worksheet Entry TA at December 31, 2016 (In order to receive credit, you must show your ca

#### The cumulative effect of this accounting change

with no residual value. At the beginning of 2011, a decision was made to change to the straight-line method of depreciation for this machine. Assuming a 30% tax rate, the cumu

#### Calculate the real wage for years

Briefly explain how you can use data on nominal wages for the years from 2007 to 2013 and data on the consumer price index for the same years to calculate the real wage for

#### The trial balance of winsor corporation is reproduced

The trial balance of Winsor Corporation is reproduced on the following page. The information below is relevant to the preparation of adjusting entries needed to both prope

#### Video on how ups works and read the cnet

Watch the video on How UPS Works and read the CNET.com article, UPS and the art of sorting a million packages a day, and then discuss the advantages and disadvantages of the

#### Taxable income of sting corporation

In the current year, Sting Corporation had net income per books of \$65,000, tax-exempt interest of \$1,500, excess contributions of \$3,000, excess tax depreciation over book

### Write a Review

#### Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!