A donor agrees to contribute $5,000 per year at the end of each of the next five years to a voluntary health and welfare organization. The donor did not place any use restrictions on the amount pledged. The stream of the payments is discounted at 6 percent. The first payment of $5,000 is received at the end of the first year. The present value factor for a five-payment annuity due on June 30, 20X9, at 6 percent is 4.2124. The present value factor for a four-payment annuity due on June 30, 20X9, at 6 percent is 3.4651.Based on the preceding information, the increase in present value of the contributions receivable recognized at the end of the first year equals:
A. $4,212.
B. $787.
C. $1,264.
D. $5,000.
Answer: C
You might also like to view...
Researchers have found that buyer-supplier relationships differed according to four factors: availability of alternatives; importance of supply; complexity of supply; and supply market dynamism. Based on these four factors, they classified buyer-supplier relationships into eight different categories. What are those categories?
What will be an ideal response?
The pretrial conference includes the defendant and the plaintiff without their lawyers
Indicate whether the statement is true or false
If a union makes a request to an employer for the names and addresses of employees eligible to vote in the union election:
A. The employer can refuse to provide the list on the grounds that it must protect the privacy of its employees. B. The employer must turn the information over to the union within 7 days of the request. C. The employer must turn the information over to the union within a week after the NLRB has scheduled the election. D. The employer can petition to the NLRB for an injunction to gain permission to withhold the information.
Refer to the information above. What is the optimal EPQ?
A) 1389 B) 1425.68 C) 1250.27 D) 1000 E) 1581.14