Example Problem 2: Re-work Example 1 using DB method when R = 2/N (200%) and R = 1.5/N (150%) Solution: R= 2/N = 2/10 = 0.2 d = B (1- R) k-1 (R)
Example Problem 2: Re-work Example 1 using DB method when R = 2/N (200%) and R = 1.5/N (150%) Solution: R= 2/N = 2/10 = 0.2 d = B (1- R) k-1 (R)
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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![Example Problem 2: Re-work Exam ple 1 using DB method when R = 2/N
(200%) and R = 1.5/N (150%)
Solution:
R = 2/N = 2/10 = 0.2
d = B (1- R) k-1 (R)
d = $ 4,000 (1 - 0.2) 5 (0.2) = $ 262.14
d= B [1- (1- R) *]
d= $4,000 [1 - (1– 0.2) °] = $ 2,951.42
BV, = B (1- R) k
BV, = $ 4,000 (1 – 0.2) °
BV, = $ 1,048.58](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fdafb683b-66f8-4741-b135-97e73366a892%2F774c16f2-d487-4026-8b56-af5239681189%2F6jq3v4e_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Example Problem 2: Re-work Exam ple 1 using DB method when R = 2/N
(200%) and R = 1.5/N (150%)
Solution:
R = 2/N = 2/10 = 0.2
d = B (1- R) k-1 (R)
d = $ 4,000 (1 - 0.2) 5 (0.2) = $ 262.14
d= B [1- (1- R) *]
d= $4,000 [1 - (1– 0.2) °] = $ 2,951.42
BV, = B (1- R) k
BV, = $ 4,000 (1 – 0.2) °
BV, = $ 1,048.58
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