What is the present value of this payment

Assignment Help Financial Accounting
Reference no: EM132823843

Question - An aircraft company has signed a contract to deliver a plane 3 years from now. The price they will receive at the end of 3 years is $20 million. If the firm's cost of capital is 6%, what is the present value of this payment?

Reference no: EM132823843

Questions Cloud

Operations in a healthcare organization : How does a high employee turnover rate impact the operations in a healthcare organization?
Calculate depreciation for year six : Calculate depreciation for year 6. Pie Industries purchased a machine for $42 000 and is depreciating it with a straight-line method
Define empathy and social awareness : Define empathy and social awareness. Provide explanations and examples of how they can be used to help Human Service Professionals and their clients.
Prepare necessary journal entries for transactions for moon : Prepare necessary journal entries for above transactions. Moon Ltd issued a prospectus on 1 November offering 40,000 ordinary shares
What is the present value of this payment : The price they will receive at the end of 3 years is $20 million. If the firm's cost of capital is 6%, what is the present value of this payment
Identify the outcomes that the person espoused : In this assignment, you will select an educational leader (past or present) and describe this person's leadership traits and behaviors.
Calculate cost of the receivables loan to Raya Enterprise : Calculate the cost of the receivables loan to Raya Enterprise where the firm borrows the $192,000.00. The prime rate is currently 13%
Do you think computer decision-making systems : Do you think computer decision-making systems can effectively take ethical issues into account? What is the role of human decision makers in creating ethical
What should be the diluted earnings per share for the year : Assuming the income tax rate was 30%, what should be the diluted earnings per share for the year ended December 31, 2018, rounded to the nearest penny?

Reviews

Write a Review

Financial Accounting Questions & Answers

  Find what is the value of the option to expand

Find What is the value of the option to expand? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)

  Analyze the effect of each transaction on assets

Analyze the effect of each transaction on assets, liabilities, and stockholder's equity: Selected transactions for Thyme Advertising Company, Inc.

  What basis will deli corporation have in the equipment

Individual A, an accountant, receives 50 shares of stock for services in connection with the organization of X corporation. Individual A has ordinary income to the extent of fair market value of the 50 shares.

  Data for use in its activity-based costing system

Silicon Optics has supplied the following data for use in its activity-based costing system: Overhead Costs Wages and salaries $ 354,000 Other overhead costs 203,000 Total overhead costs $ 557,000 Activity Cost Pool Activity Measure Total Activity Di..

  How do construct journal entry to record issuance of bond

Cullumber Company issued $620,000, 11%, 10-year bonds on December 31, 2019, Prepare the journal entry to record the issuance of the bonds

  Compute the value of this stock price in five years

Compute the value of this stock price in five years. Calculate the present value of these cash flows using an 8 percent discount rate.

  Which would you recommend the company choose

Based on the lower cost (annual percentage yield), which would you recommend the company choose? You must show your calculations to receive full credit. Do not just calculate "r".

  Different between onshore and offshore interest rates

Onshore-offshore interest differential i.e the different between onshore and offshore interest rates (define more explicity what this means and state how it can be used to consider the extent of intertemporal trade between countries.

  Find the value of right is

An issue price of $10.00 per share for every five shares they hold. If the cum-right shares are priced at $12.00, the value of right is given as

  What is the present value to be received in four years

What is the present value of $1,200 to be received in four years if the appropriate interest rate is 7.5% (annual compounding)?

  Witness in numerous lawsuits involving accounting fraud

Dr. Werner is a full-time professor of accounting at Pelican University. During the year, he teaches continuing education programs for CPA groups in several cities. He also serves as an expert witness in numerous lawsuits involving accounting fraud. ..

  Issuance of bonds with detachable warrants

(Issuance of Bonds with Detachable Warrants) On December 1, 2014, Universal Coat Company sold 10,000 of its 10%, 15-year, $1,000 face value, nonconvertible bonds with detachable stock warrants at 102. Prepare in general journal format the entry to re..

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