Compute the present value of the receivable on

Assignment Help Accounting Basics
Reference no: EM13614245

The following problem requires present value information:

Biotech sold a patent on a new blood analyzer to Pharma. Thesales agreement which was signed on January 1, 2006 requires Pharmato pay Biotech $1 million immediately. In addition, Pharma isrequired to pay $600,000 each December 31 for 20 years startingwith December 31, 2006. Pharma and Biotech judge that 10 percent isan appropriate interest rate for this arrangement.

1. Compute the present value of the receivable on Biotech'sbooks for January 1, 2006 immediately after receiving the $1million down payment.
2. Compute the present value of the receivable on Biotech'sbooks on December 31, 2006.
3. Compute the present value of the receivable on Biotech'sbooks on December 31, 2007.

Reference no: EM13614245

Questions Cloud

The piston will be moved slowly and reversibly until 25 : one kilogram of saturated liquid methane at 160 k is placed in an adiabatic piston-and-cylinder device and the piston
A what is the kinetic energy of the particle as it passes : identical 50uc charges are fixed on an x-axis at x -3.0 m. a particle of charge q-15uc is then released from rest at a
A compressor operating adiabatically is to compress 283 : a compressor operating adiabatically is to compress 2.83 m3min of air at 29.4 c and 102.7 knm2 to 311.6 knm2. calculate
A 250-turn solenoid carries a current of 90a the radius of : a 250-turn solenoid carries a current of 9.0a. the radius of the solenoid is .075m and its length is .14m. determine
Compute the present value of the receivable on : the following problem requires present value informationbiotech sold a patent on a new blood analyzer to pharma.
Calculate the brake kw of the fan and its efficiency is 65 : a centrifugal fan is to be used to take a flue gas at rest zero velocity and at a temperature of 352.6k and a pressure
Charge of 500 x 10-9 c and a charge of -400 x 10-9 c are : charge of 5.00 x 10-9 c and a charge of -4.00 x 10-9 c are separated by a distance of 60.0 cm. find the position at
An 878-kg block slides with an initial speed of 162 ms down : an 8.78-kg block slides with an initial speed of 1.62 ms down a ramp inclined at an angle of 27.1deg with the
A firm of manufacturers whose books are closed on : a firm of manufacturers whose books are closed on 31stdecember purchased machinery for rs.50000 on 15 january1980.

Reviews

Write a Review

Accounting Basics Questions & Answers

  Net short-term capital loss

Robin Corporation has ordinary income from operations of $30,000, net long-term capital gain of $10,000, and net short-term capital loss of $15,000. What is the taxable income for 2007?

  Banking sector plays vital role in the capitalist economies

banking sector plays vital role in the capitalist economies all over the world especially this role also gets

  Describe the functions of managerial accounting

A VP of operations has asked you to make recommendations at the weekly status meeting on how to improve the efficiency and effectiveness of each producing sub processes individually and as a whole.

  Inventory valuation methods determine the cost of goods

inventory valuation methods determine the cost of goods sold and the inventory balance. 1 explain how the average cost

  Decision variables for the mbi corporation problem

Identify the decision variables for the MBI Corporation problem. Identify the objective for the above problem, and write a formula for it. Identify the constraints for the above problem and write the formula for each

  Duncan brooks needs to borrow 500000 to open new stores

duncan brooks needs to borrow 500000 to open new stores. brooks can borrow 500000 by issuing 5 10-year bonds at a price

  Raven company is considering replacing equipment which

raven company is considering replacing equipment which originally cost 500000 and which has 460000 accumulated

  During 2012 robbys camera shop had sales revenue of 170000

during 2012 robbys camera shop had sales revenue of 170000 of which 75000 was on credit. at the start of 2012 accounts

  The lowell merchandising corporation purchased 240000 of

the lowell merchandising corporation purchased 240000 of display equipment on january 1 2009. the equipment was

  Inventory cost by the first-in and first-out method

Determine the inventory cost by the first-in, first-out method, the last-in, first-out method, and the average cost method.

  Sketch a job-cost record

Western State University uses job-cost records for various research projects. A major reason for such records is to justify requests for reimbursement of costs on projects sponsored by the federal government.

  The compnanys goal is to produce 319500 pizzas in the first

the compnanys goal is to produce 319500 pizzas in the first year. they plan to keep a one month supply of pizzas in

Free Assignment Quote

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!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd