User Account

All Pages

What is the present value of this note

Assignment Help Financial Management
Reference no: EM132385806

Question

On January 1, 2018, Desert Co. sold goods to Jungle Company. In exchange, Jungle signed a zero-interest-bearing note requiring payment of $200,000 each year for seven years. The first payment is not due until December 31, 2018. The prevailing rate of interest for this type of note at date of issuance was 10%. Information on present value factors is as follows:

# Periods PV of 1 at 10% PV of Ordinary Annuity at 10% 6 0.5645 4.3553 7 0.5132 4.8684

What is the present value of this note?

Reference no: EM132385806

Questions Cloud

What is the shareholders basis in the property received : What is the amount of the shareholder's dividend income on the distribution? What is the shareholder's basis in the property received
COMP 350 Numerical Computing Assignment Problem : COMP 350 Numerical Computing Assignment - Floating Point Arithmetic and IEEE Standard, Assessment Help, McGill University, Canada - GENP and LU Decomposition
Is barry required by law to report the income from his lab : Barry has a successful methamphetamine laboratory. Producing methamphetamine is illegal under federal law. Is Barry required by law to report the income.
Calculate sherrys net income from the vacation home : Calculate Sherrys net income (or loss) from the vacation home for this tax year. Base allocation on number months, rather than days
What is the present value of this note : On January 1, 2018, Desert Co. sold goods to Jungle Company. In exchange, Jungle signed a zero-interest-bearing note requiring payment of $200,000.
Calculate the equivalent units and costs per equivalent : Calculate the equivalent units and costs per equivalent unit of material X, material Y, and conversion for the mixing department.
Role for the accounting profession in analytics : explain in detail why there be a greater role for the accounting profession in analytics and less on cost control as part of performance optimisation
Explain how to prepare the general journal entry : Explain how to prepare the General Journal entry for the January 2 and January 15 entries - On January 15, Alpha Corporation issued 1,100 shares of its $100 par
Calculate the number of tons completed and transferred : How would your answer in requirement 2 change if the percentage of completion in ending inventory were as follows: direct materials 30%, conversion 40%?

Reviews

Write a Review

Financial Management Questions & Answers

  What was the firm free cash flow

The firm was required to spend $15,250 to buy new fixed assets and to invest $6,850 in net operating working capital. What was the firm's free cash flow?

  What is the reward-to-volatility ratio for the equity fund

What is the reward-to-volatility ratio for the equity fund?

  Compounded daily on its savings accounts

Gold Door Credit Bank is offering 8.7 percent compounded daily on its savings accounts. You deposit $6182 today. How much will you have in account in 12 years.

  Whether the standard deviation or covariance

Justify whether the standard deviation or covariance is the most significant measurement when adding a risky asset to an already highly risky portfolio. Provide support for your justification.

  Find the present day price of the cash streams

Assume that capital markets are perfect. Find the present day price of the following cash streams.

  Federal-plus-state corporate tax

Companies U and L are identical in every respect except that U is unlevered while L has $10 million of 5.7% bonds outstanding. Assume that (1) all of the MM assumptions are met, (2) both companies are subject to a 31% federal-plus-state corporate tax..

  The underlying makes no cash payments

The spot price is $30, the annual risk-free rate is 4 percent, and the underlying makes no cash payments

  Analysis showing the pros and cons of each decision

Eric and Tammy feel like they will live in their home forever. They are considering refinancing their home. Eric and Tammy were told by a mortgage broker that they would qualify for a 3.8% rate on a 15 year or 4% on a 30-year mortgage. Provide an ana..

  How much do you expect to leave as bequest to beneficiaries

How much do you expect to leave as bequest to your beneficiaries?

  Financing costs with the most aggressive asset-financing mix

Compute the anticipated return after financing costs with the most aggressive asset-financing mix.

  Value a constant growth stock financial analysts

Value a Constant Growth Stock Financial analysts forecast Wal-Mart Stores (WMT) growth for the future to be 13.00 percent.

  What do you expect to happen to wages

What do you expect to happen to wages and the size of the workforce?- How will this answer change in markets where labor is inelastically demanded?

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