e2 Amazon predicted that if they invest$14,500,000 on carrying and deliveringgroceries now it will earn a large sum ofrevenue in the near future. Amazon alsorealized that there will be no new revenue inyears 1 through 3, but from year 4 revenue willbe $500,000, and there after it would increaseaccording to an arithmetic gradient throughyear 12. What is the required gradient, if theyexpected rate of return is 12% per year? Drawthe cash flow diagram.

Present Value is the amount to be calculated using the estimated future expected receipt/cash flow…

Answered: year 12. What is the required gradient,…

Business

Accounting

year 12. What is the required gradient, if they expected rate of return is 12% per year? Draw the cash flow diagram.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Related questions

Q: C, F, and G. Thank you!

A: Working capital: The working capital formula tells us the short-term liquid assets remaining after…

Q: How do i do EX 12-3 & EX 12-4

A: Common stock: These are the ordinary shares that a corporation issues to the investors in order to…

Q: Prev

A: The Loan provided to friends is clearly a “Non-Business” loan and so it is to be treated as…

Q: Which of the following orders allows for partial execution?

A: FOK (Fill or Kill Order): This type of order allows being executed immediately at the specified…

Q: THE SMITH COMPANY Using the business transactions below, complete T-accounts for the Smith Company.…

A: T Accounts 1. Cash Account Particular Debit Particular Credit To capital A/c…

Q: E12.8

A: Treasury stock refers to a method used by the organization to repurchase the issued stock. It is…

Q: When are data in 3NF?

Q: What is the quotient? (13)/(15)-:(1)/(3)=x

A: A quotient in mathematics is the amount created when two numbers are divided. In mathematics, the…

Q: Number 33

A: 1)

Q: Definition of Marco

A: Macroeconomics is the study of how the economy behaves in broad outline. It is largely concerned…

Q: The acco

A: Accounting equation has been considered as the origination of double entry accounting system. This…

Q: 4. What purpose do the disclosure notes serve?

A: Financial Statement: It is the end reports of an organization prepared at the end of the financial…

Q: Question 8

A: When net credit sales is divided with average accounts receivable it results in receivable turnover…

Q: Explanation 1031 like-kind exchange

Q: All of problems 3

Q: nkkkk

A: We can decide upon the better choice of loan by computing the future value of both the loans. Lower…

Q: customers, durilng 33. İnferring cash flows from balance sheet and income statement data. (Based on…

A: Since we answer up to 3 sub-parts, we'll answer the first 3. Please resubmit the question and…

Q: Which of the following value is concerned with the way we approach the end states?

A: Option a

Q: Vhhhbbbbbbbnn

Q: Please provide me the solution with explanation of d,e,f and G

A: “Since you have posted a question with multiple sub-parts, we will solve first three sub-parts for…

Q: Activity F stomer Service

A: 1) S. Inc Activity rate = Total activity cost ÷ Activity Base Customer Service = $29,190 ÷ 210 =…

Q: dgdfdgdhfgff

A: It looks like your message might have been incomplete or accidentally sent. How can I assist you…

Q: Define regulation D

A: The Accounting Standards are specific set of principles and procedures set by the authorized bodies…

Q: What is Operational Cycle?

A: The management of the corporation uses to identify the operational cycle to get a rough idea about…

Q: Advertising flyers announcing the formation of the business and a newspaper ad dine, oil, and…

A: The accounting equation is considered to be the foundation of the double-entry accounting system.…

Q: 3 Calculate WACC

A: Weighted average cost of capital (WACC) is used as a hurdle rate for evaluating capital investment…

Q: WHat ia 2 plus 2

A: Answer:

Q: (d) On what basis should management select from these two methods to depreciate the machine? Justify…

A: The management should opt for reducing balance method of depreciation for the above scenario: This…

Q: 1= 2(1+g) or D1 = 2? Why?

A: Companies pay dividend to shareholder out of net income but some of earnings are retained for the…

Q: How do I do number 2 ?

A: Adjusting entries: Adjusting entries are those entries that are recorded at the end of the year, to…

Q: Final T&SC PP = $ ? where answer for this.?

A: Final taxes and charges and service fess is the cost of the taxes and charges which has been charged…

Q: E12.4

A: Journal Entry: Journal entry is the act of keeping records of transactions in an accounting journal.…

Q: 4. What is sensitivity analysis?

A: What Is Sensitivity Analysis?

Q: Why is a policy statement important?

A: A policy statement or an investment policy statement is a document created by the investment…

Q: 3. Accounting diversity creates a demand for ..........

A: Accounting diversity alludes to variations in the gathering and utilization of financial data.…

Question

Amazon predicted that if they invest
$14,500,000 on carrying and delivering
groceries now it will earn a large sum of
revenue in the near future. Amazon also
realized that there will be no new revenue in
years 1 through 3, but from year 4 revenue will
be $500,000, and there after it would increase
according to an arithmetic gradient through
year 12. What is the required gradient, if they
expected rate of return is 12% per year? Draw
the cash flow diagram.

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Definitions

VIEW

Cash flow required gradient

VIEW

Cash flow diagram

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 3 steps with 4 images

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions

Please answer G part with explanation
Piper Specialty Store Ltd. completed the following merchandising transactions in the month of May 2021. At the beginning of May, Piper's ledger showed Cash $7,000; Accounts Receivable $1,900; Inventory $3,500; Common Shares $7,800; and Retained Earnings $4,600. Piper Specialty has experienced a return rate of 2% of sales and uses a perpetual inventory system. Purchased merchandise on account from Depot Wholesale Supply Ltd. for $5,340, terms 1/10, n/30, FOB shipping point. May 3 Freight charges of $137 were paid by the appropriate party on the merchandise purchased on May 1. Sold merchandise on account to Yip Company for $3,500, terms n/30, FOB destination. The cost of the merchandise was $2,400. 7 Freight charges of $86 were paid by the appropriate party on the May 4 sale. 8. Received a $140 credit from Depot Wholesale Supply when merchandise was returned. Paid Depot Wholesale Supply in full. 11 Purchased supplies for $390 cash. 14 Received payment in full from Yip Company for…
Define Profi t and loss (P&L) statement
Select one:a.(iii) and (iv) onlyb.(ii) and (iii) onlyc.(i) and (ii) onlyd.All four
C, D, E
3. What is the NAV?
A, B, C
pls answer no. 4 and 5
What is the answer to d e and f?
Define Rule of 78