User Account

All Pages

What is the present value of this commitment

Assignment Help Accounting Basics
Reference no: EM133165041

Question - When Marilyn Monroe died, ex-husband Joe DiMaggio vowed to place fresh flowers on her grave every Sunday as long as he lived. The week after she died in 1962, a bunch of fresh flowers that the former baseball player thought appropriate for the star cost about $7. Based on actuarial tables, "Joltin' Joe" could expect to live for 25 years after the actress died. Assume that the EAR is 9.8 percent. Also, assume that the price of the flowers will increase at 4.2 percent per year, when expressed as an EAR. Assume that each year has exactly 52 weeks and Joe began purchasing flowers the week after Marilyn died.

Required - What is the present value of this commitment?

Reference no: EM133165041

Questions Cloud

Prepare an entry as of december : Prepare an entry as of December 31, 2020, to reclassify the items from the intangible assets account to the appropriate accounts
Entrepreneurship leads to prosperity and philanthropy : How has innovation and entrepreneurship leads to prosperity and philanthropy?
What are the different types of discontinuity : What are the different types of discontinuity? How is a tangent line different from a secant line?
High qua and good customer values : When a product is priced using premium pricing (eg market skimming), does that mean it has high qua and good customer values?
What is the present value of this commitment : Assume that each year has exactly 52 weeks and Joe began purchasing flowers the week after Marilyn died. What is the present value of this commitment
Marketing milestone-nike company : What is their age demographic? Where does your target audience go to get their information about products or services?
Calculate the equivalent units of production : Calculate the Equivalent Units of Production for Pennsauken Company's Work In Process, based on the following facts as of December 31, 2021
Reinvigorate facebook slowing growth : Allowing tweens to create profiles could reinvigorate Facebook's slowing growth. But Facebook has already come under fire for privacy issues,
Differences between direct and indirect costs : Explain the differences between direct and indirect costs. In addition, discuss why these costs are important to determine the return on assets

Reviews

Write a Review

Accounting Basics Questions & Answers

  How much control does fed have over this longer real rate

Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest.   How much control does the Fed have over this longer real rate?

  Coures:- fundamental accounting principles

Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.

  Accounting problems

Accounting problems,  Draw a detailed timeline incorporating the dividends, calculate    the exact Payback Period  b)   the discounted Payback Period. the IRR,  the NPV, the Profitability Index.

  Theory of interest - term structure of interest rates

Term Structure of Interest Rates

  Write a report on internal controls

Write a report on Internal Controls

  Prepare the bank reconciliation for company

Prepare the bank reconciliation for company.

  Cost-benefit analysis

Create a cost-benefit analysis to evaluate the project

  Theory of interest

Theory of Interest: NPV, IRR, Nominal and Real, Amortization, Sinking Fund, TWRR, DWRR

  Liquidity and profitability

Distinguish between liquidity and profitability.

  What is the expected risk premium on the portfolio

Your Corp, Inc. has a corporate tax rate of 35%. Please calculate their after tax cost of debt expressed as a percentage. Your Corp, Inc. has several outstanding bond issues all of which require semiannual interest payments.

  Simple interest and compound interest

Simple Interest, Compound interest, discount rate, force of interest, AV, PV

  Capm and venture capital

CAPM and Venture Capital

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