[jeff]

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Jeff Elliott, CPA (KS) | Another71 | NINJA CPA | NINJA CMA | NINJA CPE

[UCMCPA]

KNM, they are giving you the present value of 1 payment and the present value of multiple payments.

For instance, if you the machine will increase profits by 30,000 for 5 years. You would use the PV of annuity in 5 years x 30,000 to calculate that npv. If you are disposing of the machine in year 5, that is a ONE time payment. So you would take say, 10,000 disposal price x the present value of 1 in 5 years.

The difference there is the re-occurring payments each year, which makes it an annuity.

FAR - 84
AUD - 94
REG - 86
BEC - 86

[UCMCPA]

KNM, they are giving you the present value of 1 payment and the present value of multiple payments.

For instance, if you the machine will increase profits by 30,000 for 5 years. You would use the PV of annuity in 5 years x 30,000 to calculate that npv. If you are disposing of the machine in year 5, that is a ONE time payment. So you would take say, 10,000 disposal price x the present value of 1 in 5 years.

The difference there is the re-occurring payments each year, which makes it an annuity.

FAR - 84
AUD - 94
REG - 86
BEC - 86

[UCMCPA]

Before I explain, is the answer to that problem C? 62,900

FAR - 84
AUD - 94
REG - 86
BEC - 86

[UCMCPA]

Before I explain, is the answer to that problem C? 62,900

FAR - 84
AUD - 94
REG - 86
BEC - 86

[UCMCPA]

30,000 x 1.65

20,000 x .67.

Total of 62,900

To find the uneven cash flow in year three, you need to find the rate for a SINGLE payment. So you would take the year 3 annuity multiple of 2.xx – annuity multiple in year 2 of 1.65.

FAR - 84
AUD - 94
REG - 86
BEC - 86

[UCMCPA]

30,000 x 1.65

20,000 x .67.

Total of 62,900

To find the uneven cash flow in year three, you need to find the rate for a SINGLE payment. So you would take the year 3 annuity multiple of 2.xx – annuity multiple in year 2 of 1.65.

FAR - 84
AUD - 94
REG - 86
BEC - 86

[KNMCPA]

Yes, its C.

BEC- 75
AUD - 83
REG - 76 (Expired 2/28/14)
FAR - 53 66

Becker Self Study

[KNMCPA]

Yes, its C.

BEC- 75
AUD - 83
REG - 76 (Expired 2/28/14)
FAR - 53 66

Becker Self Study

[KNMCPA]

Ahh, thanks.:) I think I got it. I don't know why it didn't click before.

BEC- 75
AUD - 83
REG - 76 (Expired 2/28/14)
FAR - 53 66

Becker Self Study

[KNMCPA]

Ahh, thanks.:) I think I got it. I don't know why it didn't click before.

BEC- 75
AUD - 83
REG - 76 (Expired 2/28/14)
FAR - 53 66

Becker Self Study

[jydotcom]

@ UCMCPA. What study materials are you using?

BEC - Passed!
AUD - ??
REG - ??
FAR - (July 2014)

Using Roger CPA Review, Wiley Test Bank, and NINJA Notes/Video/MCQ.

[jydotcom]

@ UCMCPA. What study materials are you using?

BEC - Passed!
AUD - ??
REG - ??
FAR - (July 2014)

Using Roger CPA Review, Wiley Test Bank, and NINJA Notes/Video/MCQ.

[princeCPA]

@KNMCPA

They are saving 30,000 each year for the next two years and 20,000 at year three.

The 30,000 is an annity where you calculate 30,000 *1.65=49,500…since it is the same value each year you take the annuity rate)

For the 20,000 since it is a different value we will consider it as a one time saving at the end of year three. We need PV of 1 at year 3.

In the question we have annuity for year 2 is 1.65 and annuity for year three is 2.32 then we take the difference which is .67 and this is PV of 1 at year three. 20,000*0.67=13,400

PV= 49,500+13,400

=62,900

Hope it helps

BEC 79
FAR 86
AUD 79
REG 90

[princeCPA]

@KNMCPA

They are saving 30,000 each year for the next two years and 20,000 at year three.

The 30,000 is an annity where you calculate 30,000 *1.65=49,500…since it is the same value each year you take the annuity rate)

For the 20,000 since it is a different value we will consider it as a one time saving at the end of year three. We need PV of 1 at year 3.

In the question we have annuity for year 2 is 1.65 and annuity for year three is 2.32 then we take the difference which is .67 and this is PV of 1 at year three. 20,000*0.67=13,400

PV= 49,500+13,400

=62,900

Hope it helps

BEC 79
FAR 86
AUD 79
REG 90

[Qlad]

just a random question…. I always getr confused…after practicing so many times….pls help

Std quantity of the material per unit of output 4.5 pounds

std price of the material $13.90/ pound

Actual material purchased 2000 pounds

Actual cost of material purchased $26200

Actual material used in production 1300 pounds

actual output 220 units

What is the material price variance for the month?

What is the material quantity variance for the month?

FAR 72,71,81 🙂
AUD 64,71, 72, 75 🙂 I'm done !!!
REG 73, 74, 74, 84 🙂
BEC 76 🙂

[Author]

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