a. Calculate the future value will be if you open the account with $1,000 today, and then make the $100 deposits at the end of each year?

b. The deposit those payments into an account earning 8%, for 10 years?

c. An investment will provide you with $100 at the end of each year for the next 10 years. What is the present value of that annuity if the discount rate is 8% annually? 

d. What is the present value of the above if the payments are received at the beginning of each year?

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On February 11, 2016, Bombardier closed the sale to the CDPQ of a $1.5-billion convertible Class-B share investment in Bombardier Transportation's newly-created holding company, Bombardier Transportation (Investment) UK Limited (BT Holdco). Under the terms of the investment, the CDPQ is entitled to its pro-rata portion (on an as- converted basis, initially equal to 30% of BT Holdco Class A common shares) of any dividends declared. Dividends are payable in cash or, subject to certain conditions, in additional convertible shares at the option of BT Holdco (any such issuance to increase the CDPQ's participation, consequently the conversion feature percentage is not fixed). The auditors have analyzed the transaction and have determined that a comparable non-convertible financial security is valued at $1.2 billion. Assume BT Holdco converted its CDPQ's shares into 32.5% of BT Holdco's Class A common shares on February 16", 2020. Assume that the fair value of BTs assets and liabilities are equal to $39 billion and $32 billion respectively. 1) Using the case facts above and applying IFRS discuss the measurement and classification of the transaction 2) Write any journal entries for Bombardier Transport's that you deem necessary On February 11, 2016, Bombardier closed the sale to the CDPQ of a $1.5-billion convertible Class-B share investment in Bombardier Transportation's newly-created holding company, Bombardier Transportation (Investment) UK Limited (BT Holdco). Under the terms of the investment, the CDPQ is entitled to its pro-rata portion (on an as- converted basis, initially equal to 30% of BT Holdco Class A common shares) of any dividends declared. Dividends are payable in cash or, subject to certain conditions, in additional convertible shares at the option of BT Holdco (any such issuance to increase the CDPQ's participation, consequently the conversion feature percentage is not fixed). The auditors have analyzed the transaction and have determined that a comparable non-convertible financial security is valued at $1.2 billion. Assume BT Holdco converted its CDPQ's shares into 32.5% of BT Holdco's Class A common shares on February 16", 2020. Assume that the fair value of BTs assets and liabilities are equal to $39 billion and $32 billion respectively. 1) Using the case facts above and applying IFRS discuss the measurement and classification of the transaction 2) Write any journal entries for Bombardier Transport's that you deem necessary

Answer rating: 100% (QA)

a The future value of the account would be 10001008101001008101008238106 b The future v... View the full answer