Fraser Company will need a new warehouse in five years. The warehouse will cost $500,000 to build.
Question:
Fraser Company will need a new warehouse in five years. The warehouse will cost $500,000 to build.
Required:
What lump-sum amount should the company invest now to have the $500,000 available at the end of the five-year period? Assume that the company can invest money at:
1. Ten percent.
2. Fourteen percent.
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 84% (13 reviews)
1 From Exhibit 14B1 the factor for 10 for 5 periods is 0621 Therefore the company must invest 500000 0621 310500 2 From Exhibit 14B1 the factor for 14 for 5 periods is 0519 Therefore the company must ...View the full answer
Answered By
Somshukla Chakraborty
I have a teaching experience of more than 4 years by now in diverse subjects like History,Geography,Political Science,Sociology,Business Enterprise,Economics,Environmental Management etc.I teach students from classes 9-12 and undergraduate students.I boards I handle are IB,IGCSE, state boards,ICSE, CBSE.I am passionate about teaching.Full satisfaction of the students is my main goal.
I have completed my graduation and master's in history from Jadavpur University Kolkata,India in 2012 and I have completed my B.Ed from the same University in 2013. I have taught in a reputed school of Kolkata (subjects-History,Geography,Civics,Political Science) from 2014-2016.I worked as a guest lecturer of history in a college of Kolkata for 2 years teaching students of 1st ,2nd and 3rd year. I taught Ancient and Modern Indian history there.I have taught in another school in Mohali,Punjab teaching students from classes 9-12.Presently I am working as an online tutor with concept tutors,Bangalore,India(Carve Niche Pvt.Ltd.) for the last 1year and also have been appointed as an online history tutor by Course Hero(California,U.S) and Vidyalai.com(Chennai,India).
4.00+
2+ Reviews
10+ Question Solved
Related Book For
Managerial Accounting
ISBN: 978-0697789938
13th Edition
Authors: Ray H. Garrison, Eric W. Noreen, Peter C. Brewer
Question Posted:
Students also viewed these Managerial Accounting questions
-
At the end of the first year of operations, 7,500 units remained in the finished goods inventory. The unit manufacturing cost during the year were as follows: Direct material .......... $ 52.00...
-
At the end of her first year of university, Nola Lam decided that she wanted a summer job that would keep her outside enjoying the nice weather, so she set up her own courier service. She invested...
-
At the end of its reporting year (December 31, 2017), Acme Inc. reports a $60,000 patent with estimated remaining useful life of 10 years. Before closing its books, the company identifies a $20,000...
-
The pilot of a small boat charts a course such that the boat will always be equidistant from an upcoming rock and the shoreline. Describe the path of the boat. If the rock is 2 miles offshore, write...
-
From the Stock Performance Guide, published online by 1stock1 on the website 1Stock1.com, we found the closing values of the Dow Jones Industrial Averages as of the end of December for the years 2004...
-
Wilbern Ltd prepares financial statements to 30 June each year. On 1 March 2017, the company classifies a non-current asset as held for sale. The asset is eventually sold in July 2017. Calculate: (i)...
-
Use R to create a randomization scheme to randomize 222 subjects to three treatments such that there are an equal number of subjects assigned to each treatment. You may use the functions developed in...
-
Company E reports net income of $100,000 for 2011. Assume the income is earned evenly throughout the year. Dividends of $10,000 are paid on December 31. What will Company R report as investment...
-
Norsk Optronics, ALS, of Bergen, Norway, had a current ratio of 4 on June 3 0 of the current year. On that date, the company s assets were: Cash $ 6 6 , 0 0 0 Accounts receivable, net 4 0 0 , 0 0 0...
-
The ladder of a fire truck can be elevated (increase of angle ), rotated about the z axis (increase of angle ), and extended (increase of r). Initially the ladder rests on the truck ( > = 0, = 0,...
-
The Caldwell Herald newspaper reported the following story: Frank Ormsby of Caldwell is the states newest millionaire. By choosing the six winning numbers on last weeks state lottery, Mr. Ormsby has...
-
Solve each of the following parts independently: 1. Neal company would to initiate a managements development program for its executives. The program would cost $100,000 per year to operate. What...
-
The base sequence of which type of RNA is responsible for determining the order of amino acids in a protein?
-
Assume the settlement quote for September Treasury Bonds on May15h was 115-203. If the settlement price decreased by 13.1 points since the prior trading day, calculate settlement quote for September...
-
Find the mortgage balance after the first three payments on a 15-year $210,000 mortgage that was financed at an APR of 4.5 % and has a monthly payment of $1606.49. Payment Interest Principal Mortgage...
-
how to response to this When deciding on capital structure, managers must evaluate numerous elements, including the mix of debt and equity used to fund the company's operations and growth. Some of...
-
Ben's Brewery has a marginal tax rate of 40%. The before-tax cost of debt is 9%. The lease qualifies as a true tax lease for tax purposes. a) Should Ben's Brewery buy or lease the equipment? Show all...
-
Now assume that we have another project, Y, mutually exclusive with X requiring the same rate of return with the following cash flows: initial outlay $20 million, expected cash flows for the next...
-
What is the effect on a countrys economy of an artificially low exchange rate? Of an artificially high exchange rate?
-
In Exercises 105108, evaluate each expression without using a calculator. log(ln e)
-
What is the generic structure of amines? Write the structures of two specific amines.
-
Identify, in the sequence in which they are prepared, the three trial balances that are often used to report financial information about a company.
-
How do correcting entries differ from adjusting entries?
-
What standard classifications are used in preparing a classified balance sheet?
-
Determine the amount of tax liability in the following situations. In all cases, the taxpayer is using the filing status of married filing jointly. Use the Tax Tables for taxpayers with taxable...
-
Explain the concept of adaptable organization and state an example of both, organizations that proved to be adaptable as well as of those that failed to transform and adapt to their environment....
-
What specific HRM practices are likely to be associated with an organization being characterized as having a resilient and adaptable culture (and having resilient and adaptable employees)? Discuss
Study smarter with the SolutionInn App