Answer:
B) $5,000
Explanation:
Cypress total bill is $1,000,000. Since a foreign bank is going to provide them a service (the acceptance of payment) it will charge them 1.4% per year or 0.7% for thee six month period.
That means that Cypress will collect $1,000,000 x (1 - 0.7%) = $993,000
If Cypress decides to sell the bankers acceptance at a 1% annual fee, he will lose an additional 0.5% for the 6 month period = $930,000 x 0.5% = $4,965. Apparently we have to round to the nearest thousand ≈ $5,000
<span>Grocery,
inc., and Dave's market enter into a contract for the delivery of
locally grown produce. The parties use a standard grocery, inc. form
that contains some of the terms the parties agree on but not others.
some of the produce spoils before it can be sold. Dave's refuses to pay
for the spoiled goods. Grocery, inc. files a suit against Dave's,
claiming that the buyer assumed the risk of the spoilage of the unsold
produce. The court may allow evidence of this term if it finds that the
parties' contract is not fully integrated.</span>
Answer:
A. Medicine
Explanation:
Inelastic good is a product whose demand does not fluctuate with price changes. It means the demand for the good remains constant even if prices increase or decrease. The term inelastic symbolizes the demand for the good is static.
Medicine has an inelastic demand. Patients need medication regardless of prevailing prices. An increase or decrease in prices of medicines does not influence the demand. The term inelastic contrast elastic demand, which is the demand that varies with changes in prices.
Answer:
B. Increases the expected present value of lease cash flows to the owner
Explanation:
A lease option gives a right but not the obligation to the renter of the property to buy the said property at today's current market price upon the expiry of lease term.
Lease option is similar to an option contract, the difference being, here instead of securities, leased property serves as the underlying asset and instead of option premium, the renter pays a premium each year in addition to the rental charges.
Lease cash flows refer to the present value of future cash flows which the lessor/owner receives in the form of lease rentals plus the added premium each year.
The more the benefits under lease option clause, the higher the premium charged and thus, more would be the future receipts of owner which would increase the expected present value of lease cash flows to the owner.
Answer:
The amount of effective interest expense that chaco will record in the first six months is $14,375
Explanation:
interest payment that will be first made is on June 30, Year 1. Therefore, the outstanding balance used in the calculation is the issue price.
The interest expense is calculated by these formula
Interest expense = Effective semiannual interest rate × Outstanding balance
Interest expense = (8% ÷ 2) × $359,378 = $14,375
So the interest expense is gotten as %14,375
