Question: A donor makes a multi-year pledge to provide $1,000 a year for the next 10 years for the organization's unrestricted use. The net present value

A donor makes a multi-year pledge to provide $1,000 a year for the next 10 years for the organization's unrestricted use. The net present value of the annuity as of the date of the gift is $5,378. In the next year, $1,000 is collected. 


What is the net present value of the remaining 9 payments?

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock

To calculate the net present value NPV of the remaining 9 payments we need to use the formula for th... View full answer

blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!

Q:

Rossman Corporation holds 75 percent of the common stock of Schmid Distributors Inc., purchased on December 31, 20X1, for $2,340,000. At the date of acquisition, Schmid reported common stock with a...

Q:

Read the case study "Southwest Airlines," found in Part 2 of your textbook. Review the "Guide to Case Analysis" found on pp. CA1 - CA11 of your textbook. (This guide follows the last case in the...

Q:

Question: Old MathJax webview Old MathJax webview i need ans of these question but the source is alot Old MathJax webviewOld MathJax webview i need ans of these question but the source is alot these...

Q:

Introduce a celebrity NO POLITICAL FIGURES. Then, go back and review all of the characteristics of a speech of introduction. You may want an outline or write out the speech in its entirety (although...

Q:

Governmental accounting help..with journal entry. Need as many done in 40min please! Equipment which has a book value to the donor of $5,000 and a tax basis of $2,000 is donated to Hope for general...

Q:

WRITE jOURNAL ENTRY NA donor makes a multi-year pledge to provide $1,000 a year for the next 10 years for the organization's unrestricted use. The net present value of the annuity as of the date of...

Q:

A donor makes a multi-year pledge to provide $1,000 a year for the next 10 years for the organization's unrestricted use. The net present value of the annuity as of the date of the gift is $5,378. In...

Q:

A donor makes a multi-year pledge to provide $10,000 a year for the next 10 years for the organization's unrestricted use. The net present value of the annuity as of the date of the gift is $55,000....

Q:

A donor makes a multi-year pledge to provide $10,000 a year for the next 10 years for the organizations unrestricted use. The net present value of the annuity as of the date of the gift is $55,000....

Q:

A donor makes a multi-year pledge to provide $1,000 a year for the next 10 years for the organization's unrestricted use. The net present value of the annuity as of the date of the gift is $5,378. In...

Q:

A donor makes a multi-year pledge to provide $10,000 a year for the next 10 years for the organization's unrestricted use. The net present value of the annuity as of the date of the gift is $55,000....

Q:

Consider the following simple game of chance. You flip a fair coin. If the result is heads, you win $100, but if the result is tails, you lose $101. Let A be your random "winnings" on one play of the...

Q:

Explain any three business expansion strategies

Q:

Business firms sometimes refer to social media as q , media.

Q:

Ellison Inc., a manufacturer of steel school lockers, plans to purchase a new punch press for use in its manufacturing process. After contacting the appropriate vendors, the purchasing department...

Q:

On January 1, 2018, Maywood Hydraulics leased drilling equipment from Aqua Leasing for a four-year period ending December 31, 2021, at which time possession of the leased asset will revert back to...

Q:

Compute the activity cost rates for materials handling, assembly, and design based on these data: Materials Cloth..........$26,000 Fasteners........4,000 Purchased parts.....40,000 Materials Handling...

Q:

On April 1, 2016, Chuck's Deli issued $70,000 of its 9 percent bonds, maturing 10 years later. Interest is payable semiannually on April 1 and October 1. The issue price was 94.0. Chuck's has decided...

Q:

Data on U.S. work-related fatalities by cause follow (The World Almanac, 2012). Cause of Fatality Number of Fatalities Transportation incidents ............. 1795 Assaults and violent acts...

Q:

please rank on the following ... Education Experience Supervisory Complexity Impact Education Experience Supervisory Complexity Impact

Q:

What are the required financial statements of the U.S. government?

Q:

Presented below are comparative post-closing trial balances for a college. In addition, cash transactions for the year ended December 31, 2012, are summarized in the T-account. Comparative activity...

Q:

Indicate the information you would extract and some ratios you might calculate from the Comprehensive Annual Financial Report for each of the following major areas. Do not limit your answer to the 10...

Q:

Explain the general decision-analysis approach to dealing with multiple objectives.

Q:

Explain in your own words why the lottery method works to produce meaningful weights for evaluating alternatives.

Q:

Suppose that you are searching for an apartment in which to live while you go to school. Apartments near campus generally cost more than equivalent apartments farther away. Five apartments are...