Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. a. on may 15,2018 rick newlin reached a settlement

a. On May 15,2018 Rick Newlin reached a settlement on a long overdue contract. The...

80.2K

Verified Solution

Question

Accounting

image
a. On May 15,2018 Rick Newlin reached a settlement on a long overdue contract. The settlement results in Rick receiving a total of $1,900,000 - - scheduled over 4 annual payments of $475,000 each. The first payment starts on May 15,2021 , with the remaining 3 payments following on May 15, 2022, May 15 , 2023 , and May 15,2024 Rick wants to know the present value of his settlement today on May 15, 2018, at a 6% interest rate. Show all calculations. b. Steve Thicket Corporation issued $3,500,0,00 of 4.25%10 year bonds. Interest is payable annually on the bonds, however, the company's CFO is concerned about having sufficient funds to pay back the bonds at the end of 10 years. Therefore, the cFo is establishing a "Bond Sinking Eund" by making annual deposits of $250,000 to the fund starting at the end of the first year and continuing through the end of the 10 th year. The fund is projected to provide a return of 6% per year. Will the CFO's planned deposits be sufficient to meet the obligation? If the planned deposits are insufficient, how much should the annual deposit be increased by in order to meet the obligation? Show all calculations

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Zin AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Q

Thefollowing events occur for Morris Engineering during 2018 and 2019,its first two years of...Thefollowing...

Accounting
Q

presided as President of the Constitutional Convention O James Madison O James Monroe O George...

Biology
Q

10 A circuit has section AB as shown in figure If the charge on each...

Physics
Q

invests 6 154 in a savings account with a fixed annua est rate of 8...

Basic Math
Q

On June 30,2024, Georgla-Atlantic, Incorporated leased warehouse equipment from IC Leasing Corporation. The...

Accounting
Q

Waterways Corporation (This is a continsation of the Watervays Problem from Chaptens. through z)...

Accounting
Q

cost accounting Part 3. Calculate departmental overhead rates. A summary of the budget...

Accounting
Q

(Time Value Concepts Applied to Solve Business Problems) Answer the following questions related to Dubois...

Accounting
Q

The following information applies to the questions displayed below.] Assume that you...

Accounting
Q

Ronen Consulting has just realized an accounting error that has resulted in an unfunded liability...

Finance
Q

Deer Lake Inc. uses a job order costing system with manufacturing overhead applied to products...

Accounting
Q

QUESTION TWO Saint Augustine University of Tanzania has provided the following data to be used...

Accounting