Answer:
d. 1.25
Explanation:
In a business context, the capacity utilization rate is a value that allows the company know how well they are performing compared to what the recorded optimal levels are. In order to calculate this value we simply divide the current operating level for a specific time-period by the optimal level of that same time period, which in this case would be 1 hour. Therefore, in this case we would divide 500 by 400 which would give us 1.25.
Sum of the year's digits is 5 + 4 + 3 + 2 +1 = 15 years.
Depreciation base: 32,000 - 2,000 = 30,000
The depreciation applied in any year is the depreciation base times (number of years remaining divided by 15). The first year has the highest depreciation, and the fifth year has the lowest.
Depreciation:
1st Year: Dep Base x 5/15
2nd Year: Dep Base x 4/15
3rd Year: Dep Base x 3/15
4th Year: Dep Base x 2/15 = 30,000 x 2/15 = 4,000
5th Year: Dep Base x 1/15
Answer is $4,000
Answers: i*r*t = 2000*1*4%=80
2000+80=
$2080.00
Answer:
Price of Bond= $907.766
Explanation:
The price of the bond is the present value of its future cash flow discounted at the required rate of return of 5.5%.
Price of Bond = PV of interest payment +PV of redemption value
<em>PV of interest payment:</em>
interest payment = 5.5%× 1000= 55
PV = A × (1+r)^(-n)/r
A- 55, r - 7%, n- 10 years
PV = 55, r- 5.5%, n- 10
PV = 55× 1.07^(-10)/0.07= 399.417301
<em>Present Value of redemption </em>
PV = F× (1+r)^(-n)
F= 1000, r- 7%, n- 10 years
PV = 1,000× 1.07^(-10)= 508.3492921
Price of Bond = 508.3492921 + 399.417301= 907.7665931
Price of Bond= $907.766
