Answer:
3 percent
Explanation:
A real interest rate is an interest rate which doesn't have impact of inflation and depicts the real cost of funds to the borrower and the real yield to the lender or an investor.
Inflation = (126-120)/120 = 5%
Real Interest Rate = Nominal Interest Rate - Inflation
= 8% - 5%= 3%
Answer:
The straight line depreciation for the first year is $24000
Explanation:
The straight line method of depreciation charges/allocates a constant amount of depreciation through out the useful life of the asset. The straight line depreciation expense for the year is calculated as follows,
Straight line depreciation = (Cost - Salvage Value) / Estimated useful life
Straight line depreciation = (135000 - 15000) / 5 = $24000 per year
Thus, the amount of depreciation for first year under straight line method is $24000
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The strength of bargaining power forces depends on the availability of substitutes and <span>the relative size of the firm </span>compared to the size of suppliers or customers.
