Answer:
Credit card
Explanation:
The formula for computing the APR is shown below:
= (1 + interest rate)^time period - 1
For monthly, it is
= (1 + 15% ÷ 12 months)^12 - 1
= (1 + 0.0125
)^12 -1
= 16.080000%
Now for the APR for 6 months is
= (1 + 16% ÷ 2 months)^2 -1
= 16.640000%
The rate that is given 8% is doubles i.e 16% and the computation is same as before
As we can see that credit card contain the lower rate i.e 16.08% as compare to the money borrowed from the parents
Answer:
$42.50
Explanation:
Here, buying a put option means that the option holder will gain when the share price falls below the strike price.
Strike price is $55
Premium paid is $1.75 per share
Premium paid = $1.75 * 10 = $17.5
Shares are selling for $49
=> $(55- 49) * 10 contracts = $60.
So, net profit = $60 - $17.5 = $42.5
Answer:
B) $5.64 million
Explanation:
SAP inc can receive $500,000/ shipyard and 4 shipyards a year yields gross cash flows of 500*4 = $2,000,000. Half of these are costs that give us a Net cash flow of $1,000,000/ year.
Since there is no maturity of the project we calculate present value of cash flow with the following formula
PV of cash flow = 1,000,000/0.14 = $7.14 million rounded off
NPV = 7.14-1.5 = 5.64 million
Hope that helps.
<span>During the past recession, cali-bration company created a <u>flat</u> organization. A flat organization has several managers, and many employees who have to report to each of those appointed managers. This is a good type of organization because everybody takes part in the decision-making process, and thus customer wishes and demands are always taken into consideration. </span>
Answer:
II, III, IV are correct
Explanation:
According to my knowledge and understanding cash flow projection for a new product should include:
II. Capital expenditures for equipment to produce the new product,
III. Increase in working capital needed to finance sales of the new product,
IV. Interest expense on the loan used to finance the new product launch.
whereas Money already spent for research and development of the new product is irrelevant as it was incurred already and not incremental.
