Multiple Choice$44,035.$40.855.$69,035.$65,855. Garland Inc. offers a new employee a single-sum signing bonus at the date of employment, June 1, 2021. Alternatively, the employee can receive $39,000 at the dateof employment plus $10,000 each June 1 for five years, beginning in 2025. Assuming the employee's time value of money is 9% annually, what single amount of theemployment date would make the options equally desirable? (EV. of $1. PV of $1. EVA of $1. PVA of $1 EVAD of 51 and PVAD of 5) (Use appropriate factor(s) from thetables provided.)Pr

A lump sum payment refers to a single, large payment of money that is made all at once, rather than…

Answered: Garland Inc. offers a new employee a…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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A company offers the following bonus package to its employees. What is the Net Present Value of the package assuming an annual discount rate of 6% and annual compounding? Round to the nearest dollar. $70,000 upfront An annuity of $12, 500 to be paid each year from year 1 through year 20 An additional $15,000 at the end of year 5 Please note that this question has a numeric format, so commas will be placed automatically in the answer (this will not result in a wrong answer).
When your firm hires a new employee this year, it is obligated to contribute GBP £5,000 to a defined contribution plan for that employee, one year after the hire date. The contribution must be adjusted annually for inflation. Assume that inflation will be a constant 2.0% a year from this point forward. What is the pension cost to you of hiring a 30 year old who will be with the company for 32 years if the appropriate discount rate is 10%? Round your answer to the nearest pound.
Dillion Savage decides to make semiannual $5000 deposits into an account that pays 5% compounded semiannually. If his first deposit is on January 1, 2021, then how much is in the account immediately after the deposit on January 1, 2030?
On October 31, 2019, Strongman Samson borrowed P100,000.00 from Pretty Delilah subject to an interest rate of 6% per year until full payment. If Samson is able to pay both the principal and the interest on March 10, 2020, how much should Samson prepare in order to satisfy his agreement with Delilah?
You are working at Grey Company. You purchased a house in 2020. Gray Company gave you a housing loan on May 1, 2020 for $80,000 at a rate of 2 percent interest. You pay the interest on the loan every month. The 2020 prescribed interest rates are as follows: First quarter Second quarter Third quarter Fourth quarter What is your taxable benefit on the above loan for 2020? A) Nil. B) $267.40. C) $670.68. D) $1,073.97. E) $2,147.95. F) $667.40. 5% 4% 3% 3%
Today is July 14, 2021 and an investor enters into a FRA in which she will pay 8% per year for a three month period starting on April 14, 2022 on a principal of $ 1,000,000. On Dec 14, 2021, the forward rate for the three month period starting on April 14, 2022 is 7.6% and the risk free spot rate for April 12, 2022 is 7%. What is the value of the FRA for the investor on Dec 14, 2021? All the rates presented in this problem are in continuous compounding.
AN EMPLOYEE IS ABOUT TO RECEIVE THE SUM OF P300.00 AT THE END OF EACH YEAR FOR 5 YEARS. ONE YEAR PRIOR TO THE RECEIPT OF THE FIRST SUM, HE DECIDED TO DISCOUNT ALL 5 SUMS. IF THE INTEREST RATE IS 6%, WHAT PROCEEDS WILL HE OBTAIN? a.P1,236.71 b.P1,263.71 c.P1,362.71 d.P1,623.71
Suppose today you signed a contract for a special assignment over the next 6 years. You will be paid $11492 at the end of each year. If your required rate of return is 11%, what is this contract worth today? (Show your answer to the nearest cent. Round your answer to the nearest 2 decimal places. DO NOT round until after all calculations have been completed and you have reached your final answer.)
In Square Group, employees are entitled with gratuity if they serve at least 3 years as a regular employee. yearly increment is 10%. If the employee quits the job after 06 years of service what will be the gratuity amount? Assume that he started his job with a basic tk 25,000 and with no probation period
A person wants to be able to make monthly $500 withdrawals. If the first withdrawals is on April 1,2021 and the last withdrawal is on December 1, 2029, then how much needed to be in the account onApril 1, 2021? The account pays 5% compounded monthly TVM FORMULA
Assume that you will have a 10-year, $10,000 loan to repay to your parents when you graduatefrom college next month. The loan, plus 8 percent annual interest on the unpaid balance, is to berepaid in 10 annual installments of $1,490 each, beginning one year after you graduate. You haveaccepted a well-paying job and are considering an early settlement of the entire unpaid balance injust three years (immediately after making the third annual payment of $1,490).Prepare an amortization schedule showing how much money you will need to save to pay yourparents the entire unpaid balance of your loan three years after your graduation. (Round amountsto the nearest dollar.)
On February 18, 2026, Anna will need P 40,000. Assume that the annual effective interest is 7%. How much would Anna have to deposit on March 25, 2022 in order to be able to withdraw an amount of P40,000 on February 19, 2026?

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