You will have $____ in six years if you set aside $5,000 at 8%. (use the future value tables from chapter 5.)

How is an investment bank different from a commercial bank

yan [13]

Investment banking and commercial banking are two divisions of the banking
industry that provide substantially different services. Investment banks expedite the purchase and sales of bonds, stocks and other investments and aid companies in making initial public offerings

6 0

3 years ago

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The capital investment cost for a switchgrass-fueled ethanol plant with a capacity of 250,000 gallons per year is $2,000,000. Th

GenaCL600 [577]

Answer:

$2,740,251.24

Explanation:

Applying power sizing technique or an exponential model to determine the cost of new boiler.

This model identify the cost variation along with change in capacity or power of the equipment.

$\frac{C_{A} }{C_{B} } =(\frac{S_{A}}{S_{B}})^{x}$

Where,

Cb = Cost of new plant

Sa = capacity of new plant

Sb = capacity of old plant

x = cost capacity factor

Therefore,

$\frac{C_{A}}{2,000,000} =(\frac{400,000}{250,000})^{0.67}$

$C_{A}=2,000,000\times\frac{400,000}{250,000}$

= 2,000,000 × 1.3701

= $2,740,251.24

5 0

3 years ago

On June 30, 2021, Georgia-Atlantic, Inc. leased a warehouse equipment from IC Leasing Corporation. The lease agreement calls for

Mars2501 [29]

Answer:

1. $3,799,988

2. $3,419,989

Explanation:

1. Semiannual lease payment = $468,683

Total semiannual payments = 5*2 = 10

Incremental borrowing rate = 10%, 5% semiannual

Present value of minimum lease payments used to record right to use assets = Semi Annual lease payments * Cumulative PV Factor of annuity due for 10 periods at 5%

= $468,683 * 8.1078 = $3,799,988.0274 ≈ $3,799,988

2. Semiannual payment on 30.06.2021 = $468,683

Pretax amount of liability on 30.06.2021 = ($ 3,799,988.0274 - $468,683) = $3,331,305.0274

Interest expense for 31.12.2021 = $3,331,305.0274 * 5% = $166,565.25137

Semiannual lease payment on 31.12.2021 = $468,683

Pre tax amount for liability December 31, 2021 = $3,331,305.0274 + $166,565.25137 - $468,683 = $3,029,187.2788

Depreciation on right to use assets for 2021 = ($3,799,988.0274 ÷ 5) * (5/10)= $379,998.80274

Pre tax amount of right to use asset to be reported for 2021 = $3,799,988.0274 - $379,998.80274 = $3,419,989.2247 ≈ $3,419,989

5 0

3 years ago

George’s parents are going on a cruise and are concerned about paying their bills while they are gone because they will not have

bogdanovich [222]

Answer: Automatic withdrawal

Explanation: In an automatic withdrawal payment system the payee schedule the recurring payments on predetermined date, these are generally done electronically. These kinds of payments are generally done from banks or mutual funds accounts.

In the given case George’s parents are going to cruise thus they will not be able to pay for their bills hence they can use the automatic withdrawal system for the general bills they have to pay.

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3 years ago

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Marco and Fred enter into a contract for the sale of Marco's apartment for which Fred agrees to pay him $100,000. Marco cannot p

VLD [36.1K]

Answer:

The correct answer is the option A: unconscionable

Explanation:

To begin with, the reason why such prohibition from Marco to Fred is unconscionable is due to the fact that Marco already stated in a private contract that he agreed to sell the apartment to Fred by a certain price, therefore establishing that the property of the real estate now belongs to the other party, letting everyone else external to the contract know that the proper and new owner is Fred.

Secondly, it is understandable that now that Fred is the new owner of the apartment by contract then it is unfair and unreasonable that the old owner Marco prohibits him to do what he wants with the apartment.

5 0

3 years ago