Already have an account? Get multiple benefits of using own account!
Login in your account..!
Remember me
Don't have an account? Create your account in less than a minutes,
Forgot password? how can I recover my password now!
Enter right registered email to receive password!
Let us assume you expect to obtain Rs.2000 yearly for the next three years. The receipt of Rs.2000 is evenly divided. One part that is: Rs.1000 is obtained at the beginning of the year and the remaining Rs.1000 is received on the end of the year. We are interested in understanding the present value while the discount rate is 10%. The cash flows declared above are of two types that are similar to annuity due and regular annuity. The present value of such cash flow is determined as follows:
a) Present value of Rs.1000 obtained at the end of each year for three years as Regular annuity.
Rs. 1000 (1/ 1.10) + Rs.1000 (1/ 1.10)2 + Rs.1000 (1/ 1.10)3
= (1000 * 09091) + (1000 * 08264) + (1000 + 0.7513)
= Rs.2479.
b) Present value of Rs.1000 obtained at the starting of each year for three yearas annuity due
= Rs. 1000 + Rs. 1000 (1/ 1.10) + Rs.1000 (1/ 1.10)2
= 1000 + (1000 * 09091) + (1000 + 08264)
= Rs.2735
The present value of such annuity = Rs. 2479+Rs.2735 = Rs. 5214.
The opening entries 1. Assets of the estate or trust In both cases the various assets of the estate or trust are debited to appropriate accounts and credited to the Estate Ca
Q. What is Contractor Ledger? Accounts relating to contractors should be kept as personal accounts in contractor's ledger and a separate folio should be opened in the Contracto
Van Aalst Company's comparative balance sheet and income statement for last year appear below: Comparative Balance Sheet
Received 10,000 contribution from bill london in exchange for common stock What 2 accounts are used
You are the CFO of Diversi?ed Industries. Diversi?ed has suffered through 4 or 5 tough years. This has deteriorated its ? financial condition to the point that Diversi?ed is in dan
APPLICABILITY OF THE OPERATING CYCLE IN VEGETABLE GROWING BUSINESS
Time for disclaimer The trustee may disclaim in writing at any time within twelve months of his appointment, or of becoming aware of the property, or such extended period as th
Terry Corporation had 300,000 shares of common stock outstanding at December 31, 2010. In addition, it had 90,000 stock options outstanding, which had been granted to certain execu
Budgetary Control is a technique of managerial control through budgets. Elaborate.
What are some critics by individuals and professional bodies in this joint project?
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!
whatsapp: +91-977-207-8620
Phone: +91-977-207-8620
Email: [email protected]
All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd