1.Net operating income is not affected by changes in production under absorption costing.
2.Net operating income is not affected by changes in production under variable costing.
a.Both of the above statements are true.
b.Neither of the above statements is true.
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Ответ:
Earl Ezekiel wants to retire in San Diego when he is 65 years old.
Earl is now 49.
He needs $540,000 to retire comfortably.
Rate of Interest is 8% compounded semi annually.
We need to calculate present value of $540,000.
Present Value is given by :
Future Value / ( 1 + i ) ^ n
where i = rate of interest/ 2, as amount is compounded semi annually = .08/2 = .04
n = no of years * 2
= (65-49) * 2
= 32
= 540,000/ (1 + .04)^32
= 540,000/3.508059
= 153931.28
Earl must invest $ 153,931 today to meet his $540,000 goal at the age of 65.
Hope it helps.
Thank you..!!