Answer:
$378,756
Explanation;
The net present value of land will be =$450,000/1.09^2=$378,756
The land will be recorded in net present value of land by discounting the cost of land with interest rate of buying from the bank.
Answer:
6.442%
Explanation:
Given:
Amount borrowed from Wendy = $1,227
Charges on loan by Wendy = 4% = 0.04
Amount borrowed from Bebe = $1,143
Charges on loan by Bebe = 6% = 0.06
Amount borrowed from Shelly= $630
Charges on loan by Shelly = 12% = 0.12
Now,
Total cost of capital = $1,227 + $1,143 + $630 = $3,000
Weight of Wendy =
=
= 0.409
Weight of Bebe =
=
= 0.381
Weight of Shelly=
=
= 0.21
The weighted average cost of capital for Eric
= ∑ (weight × cost)
= 0.409 × 0.04 + 0.381 × 0.06 + 0.21 × 0.12
= 0.01636 + 0.02286 + 0.0252
= 0.06442
or
= 0.06442 × 100% = 6.442%
The net operating income is $5,000.
<h3>What is the net operating income?</h3>
The net operating income is total revenue less direct and indirect expenses.
The net operating income = total revenue - variable expenses - fixed costs.
Total revenue is price per unit multiplied by the total quantity sold. The variable expense cost per unit multiplied by the total quantity sold.
(10,000 x $10) - (10,000 x $6) - $35,000
100,000 - 60,0000 - 35,000 = $5,000
To learn more about fixed cost, please check: brainly.com/question/25879561
False
The short-run effects of an increase in the saving rate include a higher level of productivity, a higher growth rate of productivity, and a higher growth rate of income.