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Unformatted text preview: ment? (Om it the "$" sign in your
response.) Ex pec ted c as h flow $ 13,680 rev: 01_07_2013 Explanation: You ex pec t two c as h flows from y our inv es tment: Return of inv es tment (at maturity ) Return on inv es tment (periodic ally , as s tated in y our inv es tment agreement ($12,000 × 7% × 2 y ears ) Total ex pec ted c as h flow $ 12,000 $ 1,680 $ 13,680 The return of y our inv es tment will c ome at one time—two y ears later at the maturity date. The return on the
inv es tment c an c ome in different patterns . For ex ample, if it is s emiannually , y ou would rec eiv e $420
($12,000 × 7% × 1/2 y ear) four times . If it is annually , y ou would rec eiv e $840 ($12,000 × 7% ) two times . If
it is monthly , y ou would rec eiv e $70 ($12,000 × 7% × 1/12) 24 times . e z to.mhe c loud.mc gr a w- hill.c om/hm_a c c ounting.tpx? todo= pr intvie w 1/7 11/18/13 2. Assignme nt Pr int Vie w awar d: 5 out of
Managerial accounting information is designed primarily to assist investors and creditors in deciding how to allocate
Learning Objective: 0101 Discuss
accounting as t...
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This document was uploaded on 03/03/2014 for the course MGMT ACCOU 2300 at Rensselaer Polytechnic Institute.
- Fall '08