Answer:
b. higher than that computed under the weighted average method.
Explanation:
FIFO uses inventory evaluation such that the ending inventory cosists of the most recent purchases. Therefore the ending inventory consists of only the highest priced units.
The weighted average method uses process in which all the units have been uniformly valued. Therefore the weighted average ending inventory consists of units priced lower than the FIFO ending inventory during constantly rising prices.
The weighted average inventory would consist of both low priced and high priced units that are averaged which automatically is lower than the most recent high priced units.
Bruno's Lunch Counter is expanding and expects operating cash flows of $24,600 a year for 6 years as a result. This expansion requires $76,000 in new fixed assets. These assets will be worthless at the end of the project. In addition, the project requires $6,000 of net working capital throughout the life of the project. What is the net present value of this expansion project at a required rate of return of 10 percent
Answer:
The net present value of this expansion project at a required rate of return of 10 percent is $11,284.40.
Explanation:
The Summary of Cash flows are as follows :
Year 0
Cash Flows ($76,000 + $6,000) = - $82,000
Year 1
Cash Flow = $24,600
Year 2
Cash Flow = $24,600
Year 3
Cash Flow = $24,600
Year 4
Cash Flow = $24,600
Year 5
Cash Flow = $24,600
Year 6
Cash Flow ($24,600 + $6,000) = $30,600
Note that the net working capital is recouped at the end of the project.
Calculation of net present value of this expansion project
Note : I am using a financial calculator here
- $82,000 CFj
$24,600 CFj
$24,600 CFj
$24,600 CFj
$24,600 CFj
$24,600 CFj
$30,600 CFj
10 % i/yr
Shift NPV = $11,284.40
For example, if Ken purchases a Sub 100 and if there is a favorable market, he will realize a profit of $300,000. On the other hand, if the market is unfavorable, Ken will suffer a loss of $200,000. But Ken has always been a very optimistic decision maker. What type of decision is Ken facing
Answer:
Since Mr Bob is always a pessimistic decision maker, he might choose pessimistic criterion. Using pessimistic criterion, the third alternative, equipment Texan will provide the smallest potential loss; so the best alternative is purchasing equipment Texan.
Conclusion: It is likely that in this criterion, Bill will arrive at a different decision.
Company has the following balances for the current month: Direct materials used $ 23,000 Direct labor $ 19,800 Sales salaries $ 8,750 Indirect labor $ 1,500 Production manager's salary $ 6,210 Marketing costs $ 9,560 Factory lease $ 4,475 What is Robin's total manufacturing cost
Answer:
cost of goods manufactured= $54,985
Explanation:
Giving the following information:
Direct materials used $ 23,000
Direct labor $ 19,800
Indirect labor $ 1,500
Production manager's salary $ 6,210
Factory lease $ 4,475
To calculate the cost of goods manufactured, we need to use the following formula:
cost of goods manufactured= direct materials + direct labor + allocated manufacturing overhead
cost of goods manufactured= 23,000 + 19,800 + (1,500 + 6,210 + 4,475)
cost of goods manufactured= $54,985
Things that are required in order to live are wants. a. True b. False
Answer:
false. Because you NEED them you dont want them.
For 2018, Gourmet Kitchen Products reported $22 million of sales and $19 million of operating costs (including depreciation). The company has $15 million of total invested capital. Its after-tax cost of capital is 9% and its federal-plus-state income tax rate was 34%. What was the firm's economic value added (EVA), that is, how much value did management add to stockholders' wealth during 2018? Write out your answer completely. For example, 25 million should be entered as 25,000,000. Round your answer to the nearest dollar, if necessary.
Answer:
Economic value added = $630,000
Explanation:
Economic value added (EVA) = Net operating profit after taxes - Invested capital * Cost of capital
Economic value added (EVA)= [($22,000,000 - $19,000,000)*(1 - 0.34)] - [$15,000,000*9%]
Economic value added (EVA)= [$3,000,000*(0.66) - $1,350,000]
Economic value added (EVA) = $1,980,000 - $1,350,000
Economic value added (EVA)= $630,000
Pharoah Company has a tax rate of 40 percent and income before non-operating items of $1390000. It also has the following items (gross amounts). Unusual loss $222500 Discontinued operations loss 604500 Gain on disposal of equipment 50000 Change in accounting principle increasing prior year's income 317500 What is the amount of income tax expense Pharoah would report on its income statement
Answer: $245,200
Explanation:
Taxable Income = Income before non-operating items + Unusual Gain + Gain Disposal of equipment - Discontinued operation loss
= 1,390,000 + (-222,500) + 50,000 - 604,500
= $613,000
= Income tax expense = 613,000 * 40%
= $245,200
A heat integration project results in saving 5 MM Btu/h of heating utility and 14 MM Btu/h of cooling utility. The prices of heating and cooling utilities are $4/MM Btu and $7/MM Btu respectively. The process operates for 8000 h per year. The project requires the installation of three heat exchangers, pumps, and pipeline. The FCI of the project is $4.0 MM. The working capital investment is taken as 15/85 of the FCI. The annual operating cost of the project (for pumping the integrated streams) is $0.5 MM/year. Depreciation is calculated over 10 years with no salvage value. The corporate tax rate for the project is 25% of the annual taxable gross profit. What is the payback period of the project
Answer:
9.24 yr
Explanation:
The payback period refers to the amount of time it takes to recover the cost of an investment. In order to find a payback period we need to go through some calculations first
Annual savings = 5 MM Btu/hr x 8,000 hr/yr x $4/MM Btu x 14 MM Btu/hr x 8,000 hr/yr x $7/MMBtu
Annual savings = $0.944 MM/yr
TCI = [tex]\frac{4.0 MM}{0.85}[/tex]
TCI = $4.7 MM
Depreciation - Annualized fixed cost = [tex]\frac{[4.0 - 0] }{10}[/tex]
Depreciation - Annualized fixed cost = $0.4 MM/yr
Total cost annualized = Annualized fixed cost + Annual operating cost
Total cost annualized = 0.4 + 0.5
Total cost annualized= 0.9 MM/yr
Annual net (after-tax) profit = Annual income - Total cost annualized x (1-Tax rate + Depreciation
Annual net (after-tax) profit = $0.944 MM/yr - $0.9 MM/yr x 1 -0.25 + $0.4 MM/yr
Annual net (after-tax) profit = 0.433MM/yr
Payback period = [tex]\frac{4.0}{0.433MM/yr}[/tex]
Payback period = 9.24 yr
Bulluck Corporation makes a product with the following standard costs: Standard Quantity or HoursStandard Price or Rate Direct materials 3.5grams$1.00per gram Direct labor 0.7hours$11.00per hour Variable overhead 0.7hours$2.00per hour The company reported the following results concerning this product in July. Actual output 3,000units Raw materials used in production 11,370grams Actual direct labor-hours 1,910hours Purchases of raw materials 12,100grams Actual price of raw materials purchased$1.20per gram Actual direct labor rate$11.40per hour Actual variable overhead rate$2.10per hour The company applies variable overhead on the basis of direct labor-hours. The direct materials purchases variance is computed when the materials are purchased. The labor efficiency variance for July is:
Answer:
$2,090 Favourable
Explanation:
According to the given situation, the computation of labor efficiency variance for July is shown below:-
Labor efficiency variance = Standard rate × (Standard hours - Actual hours)
= $11 × ((0.7 × 3,000) - 1,910)
= $11 × 190
= $2,090 Favourable
Therefore for computing the labor efficiency variance for July we simply applied the above formula.
Which of the following is considered a service in the calculation of gdp?
A)Tax preparation.
b) Photographs.
c) Reclining chairs.
d) Automobile
Answer:
A)Tax preparation
Explanation:
Gross domestic product is the sum total of all goods and services produced by a country within a given period.
Goods are tangible products that are produced by the country and in this scenario includes photographs, reclining chairs, and photographs.
Services on the other hand are those intangible actions that produce value to the end user. An example of service is tax preparation.
If an individual requires his taxes to be prepared but does not have the skill to do it. They will hire someone to do it and pay for the service.
A) Tax preparation
The gross domestic product (GDP) is a monetary indicator of the market value of all final products and services produced over a given period of time.GDP is estimated by summing all of the money spent in a given period by consumers, corporations, and the government.A) Tax preparation is considered a service in the calculation of GDP.For more information:
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A family you are working with speaks English, but their native language is Korean and they have stated that it is much easier for them to understand things in Korean. Your company only offers the consent forms in English and Spanish. This is a violation of:
Answer:
informed consent
Explanation:
Based on the information provided, this is a violation of informed consent. This is because informed consent can only be granted when the individual signing the consent forms COMPLETELY understands and accepts the information presented in the forms. In this scenario, the family may speak English but since their native language is Korean and the consent forms are not offered in Korean there is a large possibility that some of the information may not be fully understood by the family. Thus they are not fully informed when signing.
Cattle House Steaks, a Colorado company, enters into a contract over the phone with Beef Packing Inc., an out-of-state corporation. If a dispute arises, a Colorado court can exercise jurisdiction over Beef Packing a. only if Beef Packing files the suit. b. on the basis of a federal question. c. in no circumstances. d. under the minimum-contacts test.
Answer: d. under the minimum-contacts test.
Explanation:
Cattle House Steaks, a Colorado company, enters into a contract over the phone with Beef Packing Inc., an out-of-state corporation. If a dispute arises, a Colorado court can exercise jurisdiction over Beef Packing under the minimum-contacts test.
Minimum contacts applies to situations whereby a court in one state can assert its personal jurisdiction over another defendant which isn't in that same state but is in another state.
What is the six steps in the IHOP to go order correct order list
Answer:
HIOP is the correct answer for this question
A company had total sales of $980,000, net sales of $955,800 and an average accounts receivable of $82,500. Its accounts receivable turnover equals:_____.
Answer:
Accounts receivable turnover = 11.58
Explanation:
The total sales of the company = $980000
Net sales of the company = $955800
Average account receivable = $82500
We have total sales, net sales, and average accounts receivable. Here, we are required to find the account turnover.
Use the below formula to find the account turnover:
Accounts receivable turnover = Net sales / average accounts receivable
Now insert the values:
Accounts receivable turnover = 955800 / 82500 = 11.58
Which one of the following statements concerning whole life insurance is false? Group of answer choices Whole life insurance premiums paid throughout the insured’s lifetime are ordinary life policies. Level-premium whole life insurance accumulates a cash value that eventually reaches the face value of the policy at age 100 - 120. Whole life insurance offers permanent protection throughout the insured’s lifetime. Whole life insurance can be participating, which means the insured must participate in selfdirected investments for the cash value.
Answer:
Whole life insurance can be participating, which means the insured must participate in self-directed investments for the cash value
Explanation:
Insurance is a form of protection against kinds of loss.
whole life insurance is an insurance policy that allows a lifetime coverage, which means the other insurance is for lifetime and not a specific given time provided that the person continues to pays his/premium. It should be noted that Whole life insurance offers permanent protection throughout the insured’s lifetime and premiums are paid throughout the insured’s lifetime.
n July 1, 2020, the beginning of its fiscal year, Ridgedale County recorded gross property tax levies of $4,200,000. The county estimated that 2 percent of the taxes levied would be uncollectible. As of April 30, 2021, the due date for all property taxes, the county had collected $3,900,000 in taxes. During the current fiscal year, the county collected $53,000 in delinquent taxes and $4,800 in interest and penalties on the delinquent taxes. The county imposed penalties and interest in the amount of $14,500 but only expects to collect $12,800 of that amount. At the end of the fiscal year (June 30, 2021), uncollected taxes, interest, and penalties are reclassified. They are not expected to be collected within the first 60 days for the following fiscal year. Required Record entries for the above transactions as stated in the individual statements below, and post corresponding information into the Revenues ledger as appropriate. Prepare journal entries to record the tax levy on July 1, 2020, in the General Fund. (Ignore all entries in the governmental activities journal.) Prepare a summary journal entry to record the collection of current taxes as of April 30. Prepare a summary journal entry to record the collection of delinquent taxes, interest, and penalties. (You may assume that these amounts had been designated Deferred Inflows of Resources.)
Answer:
Prepare journal entries to record the tax levy on July 1, 2020, in the General Fund. (Ignore all entries in the governmental activities journal.)
Dr Taxes receivable - current 4,200,000
Cr Allowance for uncollectible current taxes 84,000
Cr Revenues 4,116,000
Prepare a summary journal entry to record the collection of current taxes as of April 30.
Dr Cash 3,900,000
Cr Taxes receivable - current 3,900,000
Prepare a summary journal entry to record the collection of delinquent taxes, interest, and penalties.
Dr Cash 57,800
Cr Taxes receivable - delinquent 53,000
Cr Interest and penalties receivable 4,800
Dr Deferred inflows of resources 57,800
Cr Revenue 57,800
Which of the following is an example of a realistic job preview (RJP)? Check all that apply. a) When Mary has her first interview for a job as a police officer, she is shown a video that tells her how rewarding policework can be, but it also outlines how difficult it can be to work night shirts b) When he is recruited to be a tax accountant at Deloitte, Hans is told that it is a great job and company with a lot of career opportunities but also warned that during March and April it is common to have to work some evenings and weekends to get all of the tax filing work done. c) When she is recruited to be a trash truck driver for Waste Management, Trisha is told only potential negative things about the job, including the smell, early hours, and frequent traffic. d) When she is interviewed for a sales associate role at Verizon, Tina is told only positive things about the company.
The correct answers are A and B
Explanation:
Realistic Job Previews or RJPs provide objective information about a job including its challenges or negative aspects, as well as its advantages or positive aspects. This is essential to allow candidates to have a realistic perspective about a job before applying to it. In this context, only option A and B are Realistic Job Previews because these two options explain the positives and negatives of a job (police officer and tax accountant), while other options only focus on the negative or the positive, which is biased
Management of Childers Corporation is considering whether to purchase a new model 370 machine costing $536,000 or a new model 240 machine costing $463,000 to replace a machine that was purchased 9 years ago for $484,000. The old machine was used to make product M25A until it broke down last week. Unfortunately, the old machine cannot be repaired. Management has decided to buy the new model 240 machine. It has less capacity than the new model 370 machine, but its capacity is sufficient to continue making product M25A. Management also considered, but rejected, the alternative of simply dropping product M25A. If that were done, instead of investing $463,000 in the new machine, the money could be invested in a project that would return a total of $488,000. In making the decision to buy the model 240 machine rather than the model 370 machine, the differential cost was:
Answer:
Differential cost = $73,000
Explanation:
When management had to decide which machine to buy, the differential costs refers to the difference in cost between the two available options. Model 370 costs $536,000 while model 240 costs $463,000. The differential cost = $536,000 - $463,000 = $73,000.
A description of how the business will generate revenue is always included in a:
A. Stock dividend agreement
B. Stock certificate
C. Business loan agreement
D. Business plan
Answer: business plan
Explanation:
Stock dividend, is a method used to distribute wealth to its shareholders by a company.
A stock certificate is a legal document which implies that the owner has some number of stocks or shares in a corporation.
Business loan agreement is simply an understanding that takes place between a business and a lender which contains the promises made by both parties regarding giving the money by the lender and the repayment plan by the borrower.
A business plan is a document that simply describes a business and, its products or services, its financing, leadership and staffing, its operations model, etc.
When Free Trade Agreements are negotiated:___________
I inferred want to know more about free trade agreements.
Explanation:
Put simply, a free trade agreement occurs between two or more countries, in which the agreement removes barriers of trade (imports and exports) between the Countries.
For example, if country A sells shoes to country B, under a free trade agreement there will be no government tariffs imposed by country B on the goods imported from country A.
Range Co. provided the following information on selected transactions: Purchase of building from XYZ Company; obtained mortgage from BRB Bank $200 Proceeds from issuing bonds $500 Purchases of EAB Company Stock $300 Purchase of Investment in Bonds $675 Dividends paid to preferred stockholders $250 Proceeds from issuing preferred stock $225 Proceeds from sale of equipment $150 The net cash provided (used) by investing activities is:
Answer:
Net cash provided (used) by investing activities is ($1,025)
Explanation:
Cash Flow
Proceeds from sale of equipment $150
Less: Purchases of EAB Company Stock $300
Purchase of Investment in Bonds $675
Purchase of building from XYZ Company $200 $1,175
Net Cash used by investing activities -$1,025
When planning a procurement, it is useful to ______________.
Answer & Explanation: When planning a procurement, it is useful to at least conduct a make or buy analysis which aids in determining the most cost effective approach, to consult and liaise with in-house experts in the departments of procurement, human resource, and legal, and also to insure the sponsor of the project signs off on the procurement plan. The goal of procurement planning is to increase the transparency and predictability of the procurement process while also deciding on what to buy, when and from what source.
Suppose that the price of basketball tickets at your college is determined by market forces. Currently, the demand and supply schedules are as follows:Price Quantity Demanded (Qd) Quantity Supplied (Qs)$4 10,000 tickets 8,000 tickets$8 8,000 8,000$12 6,000 8,000$16 4,000 8,000$20 2,000 8,000Required:a. Draw the demand and supply curves. What is unusual about this supply curve? Why might this be true?b. What are the equilibrium price and quantity of tickets?c. The college plans to increase total enrollment next year by 5,000 students.
Answer:
a) see attached graph. There is nothing unusual with the supply curve, it is simply fixed. This happens to most services, e.g. there is a fixed number of hotel rooms available for rent, in the short run you cannot add more rooms per night if the demand increases. In order to increase the quantity supplied, you would need to build a larger hotel, or in this case, a larger stadium.
b) the equilibrium price is $8 and the equilibrium quantity is 8,000 tickets
c) if the college plans to increase enrollment, the demand might increase, leading to a higher equilibrium price, but the supply will remain the same until the stadium is expanded.
Explanation:
Price Quantity Demanded (Qd) Quantity Supplied (Qs)
$4 10,000 8,000
$8 8,000 8,000
$12 6,000 8,000
$16 4,000 8,000
$20 2,000 8,000
The equilibrium price is $8 and the equilibrium quantity is 8,000 tickets
There is nothing unusual with the supply curve. In this case, the supply curve shows the relationship between the goods that are supplied at their prices.
The demand and supply schedule is given below:
Price Quantity Demanded (Qd) Quantity Supplied (Qs)
$4 10,000 8,000
$8 8,000 8,000
$12 6,000 8,000
$16 4,000 8,000
$20 2,000 8,000
Therefore, the equilibrium price is $8 and the equilibrium quantity is 8,000 tickets
When the college plans to increase enrollment, there will be an increase in the demand, this will shift the demand to the right and lead to a higher equilibrium price. On the other hand, the supply will remain the same until there is an expansion of the stadium.
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Which of the following is a reason to obtain professional certification?a. Certification provides credibility that an individual is technically competentb. Certification often is a necessary condition for advancement and promotion within a professional services firm.c. Obtaining certification is often monetarily rewarded by an individual's employer.d. All of the above.
Answer: All of the above
Explanation:
Professional certification are the certificates that are earned by individuals which are required to do some certain jobs.
Certification provides credibility that an individual is technically competentb and is a vital condition for promotion and advancement and promotion and one's workplace. Obtaining certification is also often monetarily rewarded by an individual's employer.
Therefore, the correct answer is" all of the above".
Tina works outdoors nearly all the time. She and her team clean up roads and fix holes in them. Her job is best
described as
Alma works in an office building, where she operates engines and makes sure all the systems for heat, power, and
other utilities are working properly. Her job is best described as
Every day, Sean drives to the homes of a few different customers, where he fixes washing machines and dryers. His
job is best described as
Answer:
Tina: Highway Maintenance Worker
Alma: Stationary Engineer
Sean: Home Appliance Repairer
Have a good day :)
Tina works outdoors nearly all the time. She and her team clean up roads and fix holes in them. Her job is best described as
✔ Highway Maintenance Worker
Alma works in an office building, where she operates engines and makes sure all the systems for heat, power, and other utilities are working properly. Her job is best described as
✔ Stationary Engineer
Every day, Sean drives to the homes of a few different customers, where he fixes washing machines and dryers. His job is best described as
✔ Home Appliance Repairer
Explanation:Joe sells the house he has lived in for 10 years to the Smith family for $300,000. He receives $50,000 more than his original purchase price 10 years ago. Joe pays his real estate agent a 5 percent sales commission. This transaction will increase gross domestic product (GDP) by
Answer:
$15,000
Explanation:
Joe has sold the house he has been living in for 10 years to the Smiths family
He sold the house at $300,000
Joe receives $50,000 more than the original price bargained 10 years ago
He pays the real estate agent a commission of 5%
= 5/100
= 0.05
Therefore the increase in gross domestic product can be calculated as follows
= $300,000×0.05
= $15,000
Hence, the transaction will increase the gross domestic product by $15,000
Suppose you owned a portfolio consisting of $250,000 of long-term U.S. government bonds. Would your portfolio be riskless? Explain. Now suppose the portfolio consists of $250,000 of 30-day Treasury bills. Every 30 days your bills mature, and you will reinvest the principal ($250,000) in a new batch of bills. You plan to live on the investment income from your portfolio, and you want to maintain a constant standard of living. Is the T-bill portfolio truly riskless? Explain. What is the least risky security you can think of? Explain.
Answer and Explanation:
An investment when it would be risk free in that case both the principal and the interest amount are to be paid within the prescribed time. Also when the U.S government bonds i.e. long term would be issued by the government have a lesser interest rate as compared with the other riskier securities available at the market place this is because as the government would default next to zero in case of the short term it would make the default when there are extreme situations arise.
Therefore in the short term it would be risk free
But in the long run, the person is based on the treasury bills returns so that he or she could equate the similar standard of living also it would not suffice when the inflation rises
Therefore the less risky investment would be of Government bonds
Documentation for support is considered a deliverable at which stage of the project management process?
Answer: closing stage
Explanation:
Documentation for support is considered a deliverable at the closing stage of the project management process.
The closing stage of a project is simply the stage whereby there is an official handoff of the deliverable, regarding the project and there will be a transition to both the operational and also the maintenance phases of the project. At this point, documentation will be handed to those at the operations department.
Find online the annual 10-K report for Costco Wholesale Corporation (COST) for fiscal year (filed in October ). Answer the following questions from its cash flow statement: a. How much cash did Costco generate from operating activities in ? b. What was Costco's depreciation expense in ? c. How much cash was invested in new property and equipment (net of any sales) in ? d. How much did Costco raise from the sale of shares of its stock (net of any purchases) in ?
Based on the financial statements in question, the following are true:
a. $4,285 million. b. $1,127 million.c. $2,393 million.d. -$481 million. Costco Financial information in 2015The company was able to generate $4,285 million from operating activities. It however suffered a depreciation expense of $1,127 million.
This led to an investment of $2,393 million in new property and equipment. They also traded their shares which resulted in a negative cashflow of $481 million.
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The following financial statements are true
a. $4,285 million., b. $1,127 million. c. $2,393 million.d. -$481 million.What is Costco Wholesale Corporation ?The COST is a big box store company that is an amercing multiple billion-dollar corporations and operas a chain of members to the big box stores. As of 20220, it's the fifth-largest retailer in the world. It sells organic products and even wine.
The cash that COST generates from these activities is 4,285 USD. The depreciation expense was 1,127 USD and the cash that was invested in the new property was equipment for sales of 2,393 million USD. The COST raises its stocks to about 481 million USD.
Find out more information about the annual 10-K.
brainly.com/question/12890843.
A representative is making a presentation to a married couple, ages 75 and 77, about their need for continuing income as the expected life spans of the general population have increased. The representative is strongly recommending that the couple buy an equity indexed annuity (EIA). Which statement made by the representative would NOT be misleading and fraudulent
Answer:
"EIAs provide a minimum guaranteed rate of return that is guaranteed by the issuing insurance company"
Explanation:
Equity indexed annuities refer to an insurance product in which the product declines and lies between the fixed and variable annuity. Also it provides a return that linked such as the Standard and poor 500 index also if the cap is 10% but it grows by 15% so the customer would get a 10% return.
Therefore the above in the answer and the same is to be considered
And, the rest of the given options shows the misleading and fraudlent.
)In six months, your company plans to issue a 1.5 year zero coupon bond with a face value of $500,000 to finance a small acquisition. If the traditional expectations theory of the term structure is correct, and if the risk of your company's bonds is similar to that of the above bonds, what is the expected price of your company's bond at issue (i.s., in six months hence)
Answer:
$441,495
Explanation:
Since the information is incomplete, I looked for the missing part and found the attached information.
the current yield of a 1.5 years zero coupon bond = (100 / 89.9)¹/¹°⁵ - 1 = 0.0736 = 7.36%
the current yield of a 6 months zero coupon bond = (100 / 97.087)¹/⁰°⁵ - 1 = 0.0609 = 6.09%
now to calculate the future interest rate:
(1.0736²/1.0609) - 1 = 0.0865 = 8.65%
since we are told to determine the price of the bond:
(100/P)¹/¹°⁵ - 1 = 0.0865
(100/P)¹/¹°⁵ = 1.0865
100/P = 1.0865¹°⁵
100/P = 1.1325
100/1.1325 = P
P = 88.299
the expected price of the bond = 88.299% x $500,000 = $441,495
