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.
Q. What is Balance Sheet? Balance Sheet - Basic FINANCIAL STATEMENT, generally accompanied by appropriate DISCLOSURES which describe the basis of ACCOUNTING used in its prepara
Most firms build and keep inventories in the course of doing business. Manufacturing firms hold raw material, finished goods and spares and work in process in inventories. Financia
Personal Property - Movable property which isn't affixed to land (REAL PROPERTY). Personal property comprises tangible items likecars, cash and computers and intangible items, like
INCOME ACCOUNT (a) Classification : Income will be classified under appropriate headings: Rents; Interest on Government securities; Dividends; Interest on
The principle that (1) requires revenue to be recognized at the time it is earned, (2) allows the inflow of assets associated with revenue to be in a form other than cash and (3
i need to prepare a steep analysis report for kathmandu
summary of key financial ratios with formula
Q. Show example on Ratio calculations? The current gearing of Springbank plc = 100 × (3·5m/4m) = 87·5% Total debt after issuing $3·4m of debt = 3·5m + 3·4m = $6·9m New le
Let us assume that you deposit Rs.1000 in a bank that pays 10 percent interest compounded yearly for a period of 3 years. The deposit will grow as given details: Fir
The SIMPLEX financial system is characterized by a required reserves ratio of 11 percent; initial excess reserves are $1 million, and there are no currency or other leakages. a.
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