User Account

All Pages

What is the present value of his consulting contract

Assignment Help Managerial Accounting
Reference no: EM133069022

Question - Les Moore retired as president of Goodman Snack Foods Company but is currently on a consulting contract for $59,000 per year for the next 12 years.

a. If Mr. Moore's opportunity cost (potential return) is 11 percent, what is the present value of his consulting contract?

b. Assuming Mr. Moore will not retire for two more years and will not start to receive his 12 payments until the end of the third year, what would be the value of his deferred annuity?

Reference no: EM133069022

Questions Cloud

What is cap rate indicated by technique : Your client asks you to indicate a cap rate for the subject property using the band-of-investments technique, using the following parameters:
Compute the descriptive statistics of sales : Mikel Bookstore has four locations in one large metropolitan area. Monthly sales (in thousands of dollars) from a random of 24 months
Calculate the price level : Suppose you are short 21 futures contracts of Silver (contract size = 5000 oz.) The futures price is 21.05 per ounce.
Calculate the 5-month forward exchange rate : The spot exchange rate for US and Japan is quoted as 105.33 (¥ per $). The US continuously compounded risk-free rate is 1.00%. Japan's continuously compounded r
What is the present value of his consulting contract : If Mr. Moore's opportunity cost (potential return) is 11 percent, what is the present value of his consulting contract
Saving monthly electricity expense : Jenny decided to do the following things after completion of her finance degree at Holmes Institute:
Find the correlation matrix for the three assets : Find the correlation matrix for the three assets using the given variance/covariancematrix. Show your work and report to 2 decimal places.
What is the per unit product cost that would be recorded : What is the per unit product cost that would be recorded on Footy Ltd.'s balance sheet (statement of financial position) at the end of the year
What is the discount being offered by the supplier : The company just placed an order for 700 kg of chicken drumsticks at a unit price of $3/kg. The supplier offers credit terms of 2/15, net 45.

Reviews

Write a Review

Managerial Accounting Questions & Answers

  Manage budgets and financial plans

Explain the budgeting process and its importance to a business, identifying the components of different budgets, forecast estimates for inclusion in the budgets.

  Prepare a retained earnings statement

Prepare a retained earnings statement for the year and Prepare a stockholders' equity section of given case.

  Prepare a master budget for the three-month period

Prepare a master budget for the three-month period.

  Construct the companys direct labor budget

Construct the company's direct labor budget for the upcoming fiscal year, assuming that the direct labor workforce is adjusted each quarter to match the number of hours required to produce the forecasted number of units produced.

  Evaluate the predetermined overhead rate

Evaluate the Predetermined Overhead Rate

  Determine the company''s bid

Determine the company's bid if activity-based costing is used and the bid is based upon full manufacturing cost plus 30 percent.

  Compute the pool rates for the different activities

Complete the schedule to compute the pool rates for the different activities.

  Prepare Company financial statements

Prepare Company financial statements

  Prepare an analysis of terracycles

This individual assignment is based on the TerraCycle Inc.

  Discuss the ethical issues

Discuss the ethical issues

  Political resources in emerging markets

Calculate the GDP in Income Approach  and Expenditure Approach

  Management accounting - ehsan electronics company

A new plant accountant suggested that the company may be able to assign support costs to products more accurately by using an activity based costing system that relies on a separate rate for each manufacturing activity that causes support costs.

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!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

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