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Nutka1998 [239]
3 years ago
8

The cost for manufacturing a component used in intelligent interface converters was $23,000 the first year. The company expects

the cost to increase by 2% each year. Calculate the present worth of this cost over a fiveyear period at an interest rate of 10% per year.
Business
1 answer:
romanna [79]3 years ago
3 0

Answer:

present worth = $7380

Explanation:

given data

initial cash flow = $23,000

geometric gradient = 2%

interest rate i = 10% per year

time period = 5 year

solution

we get here present worth  cost that is

present worth = initial cash flow  × \frac{1-(\frac{1+g}{1+i})^t}{1-g}    ......................1

put here value and we get

present worth =  $23,000  × \frac{1-(\frac{1+0.02}{1+0.10})^5}{1-0.02}    

present worth = $23,000  × 0.32087

present worth = $7380

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A letter provided by the tenant to the landlord, which assures that their lease is binding, accurate, and being paid upon, is known as an estoppel letter.

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Informal letters are non-public letters that might be written to allow your buddies or own circle of relatives to realize approximately what goes on in your lifestyle and to bring your regards. A casual letter is typically written to an own circle of relatives member, a near acquaintance, or a friend. The language utilized in a casual letter is informal and non-public.

A letter is stated to be casual while it's far written in a pleasant way, to a person you're acquainted with. Formal letters are written for reputable or expert communication. On the opposite hand, casual letters are used for informal or non-public communication. There is a way prescribed for writing formal letters.

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7 0
1 year ago
The Morris Corporation has $350,000 of debt outstanding, and it pays an interest rate of 8% annually. Morris's annual sales are
Vinil7 [7]

Answer:

8.14 times

Explanation:

The computation of the Time interest earned ratio is shown below:

As we know that

Times interest earned ratio = (Earnings before interest and taxes) ÷ (Interest expense)

where,

Earnings before interest and taxes = Income before income tax for the year + Interest expense

But before tha,  we need to do the following calculations

The interest amount  is

= $350,000 × 0.08

= $28,000

The net profit is

= $1,750,000 × 8%

= $140,000

The EBIT is

= Profit before tax + interest expense

= $140,000 ÷ (1 - 0.30) + $28,000

= $200,000 + $28,000

= $228,000

And, the interest expense is $28,000

So, the TIE ratio is

= $228,000 ÷ $28,000

= 8.14 times

3 0
3 years ago
Sub to thunderofight12 to get free brainlyistSub to thunderofight12 to get free brainlyistSub to thunderofight12 to get free bra
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ah yes the great "Business" move

5 0
3 years ago
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Durango, Inc. purchased a parcel of land for $450,000. It paid attorney fees of $3,000 to verify title to the land. In addition,
Crank

Answer:

D. $460,500

Explanation:

Given that

Cost of parcel of land = 450000

Legal fees = 3000

Broker's fees = 7500

Therefore,

Amount recorded as cost of parcel of land is

Cost of parcel of land + legal fees + brokers fee

= 450000 + 3000 + 7500

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When purchasing land, fees like commissions, legal fees, bank fees, title fees and other expenses added before the land can be used are considered as part of the land's cost. Hence the answer.

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3 years ago
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One definition of information structures is that they are a way of organizing information. True or false?.
Paul [167]

It is false that one definition of information structures is that they are a way of organizing information.

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Information is giving details about an event or something to people through various means like internet, radio, television, etc.

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Hence, It is false that one definition of information structures is that they are a way of organizing information.

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