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3 years ago

If a borrower provides collateral and fails to repay the loan,

Business

2 answers:

pashok25 [27]3 years ago

7 0

Answer:

If a borrower provides collateral and fails to repay the loan, then (B) The lender can sell the collateral to cover losses.

Explanation:

Because of a gold credit, if the borrower neglects to reimburse the advance, the bank has the full position of selling the collateral and recuperates their cash. When the cost of gold is, more the cash left in the wake of taking the extraordinary sum will come back to the borrower.

Therefore, this is a significant drawback to defaulting on protected loans. When this occurs, the advantages you set up for guarantee when getting a verified credit can be repossessed right away. In numerous U.S. states, banks are not constrained to tell borrowers that their insurance resources have been seized and auctions off to a buyer.

MakcuM [25]3 years ago

6 0

The correct option is B.
In case of non repayment of loan, the lender can sell the collateral and used the proceeds to cover his losses. A collateral is always in form of properties which are substantial in value, it is often requested that borrowers provide collateral in order to reassure lenders that they will pay up.

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Companies in the "sunset" industries develop environment ally sound substitutes

OverLord2011 [107]

What's your question I don't understand

6 0

3 years ago

One of two methods must be used to produce expansion anchors. Method A costs $80,000 initially and will have a $15,000 salvage v

kaheart [24]

Answer:

Method b

Explanation:

Present worth can be calculated using a financial calculator

For method A ,

Cash flow in year 0 = $80,000

Cash flow in year 1 and 2 = $30,000

Cash flow in year 3 = $30,000 - $15,000 = $15,000

I = 12%

Present worth = $141,378.23

For method B,

Cash flow in year 0 = $120,000

Cash flow in year 1 and 2 = $8, 000

Cash flow in year 3 = $8,000 - $40,000 = $-32,000

I = 12%

Present worth = $110,743.44

Method b would is chosen because it worth less.

To find the present worth using a financial calacutor:

1. Input the cash flow values by pressing the CF button. After inputting the value, press enter and the arrow facing a downward direction.

2. After inputting all the cash flows, press the NPV button, input the value for I, press enter and the arrow facing a downward direction.

3. Press compute

4 0

3 years ago

Sandstone, Inc. is considering a fourminusyear project that has an initial afterminustax outlay or afterminustax cost of $80,0

mote1985 [20]

Answer:

NPV = $28020.99

so he accept the this project as NPV value is positive

Explanation:

given data

CF 0 = $80000

CF 1 = $40000

CF 2 = $40000

CF 3 = $30000

CF 4 = $30000

discount rate r = 12%

solution

we get here Net present value (NPV) of the project that is total sum of the current value of all flow that is express as

NPV = $- CF 0 + \frac{CF1}{(1 + r)} + \frac{CF 2}{(1 + r)^2} + \frac{CF3}{( 1+ r)^3} + \frac{CF4}{(1+r)^4}$ ...........................1

put here value and we get

NPV = $- 80000 + \frac{40000}{(1+ 0.12)} + \frac{40000}{(1+ 0.12)^2} + \frac{30000}{( 1 + 0.12)^3} + \frac{30000}{(1+ 0.12)^4}$

solve it we get

NPV = - 80000 + 35714.29 + 31887.76 + 21353.41 + 19065.54

NPV = $28020.99

so he accept the this project as NPV value is positive

4 0

2 years ago

Pat's Custom Tuxedo Shop maintains its records on the cash basis. During this past year Pat's collected $43,300 in tailoring fee

Luba_88 [7]

Answer:

net income = $31,500

Explanation:

given data

collect tailoring fees = $43,300

paid expenses = $12,300

Depreciation expense= $2,500

Accounts receivable = $1,050

supplies increased = $4,300

liabilities increased = $2,350

to find out

accrual basis net income

solution

we get here net income by given expression that is

net income = tailoring fees - expenses paid + account receivable + supplies increased - liabilities increased - Depreciation expense .......1

put here value

net income = $43,300 - $12,300 + $1,050 + $4,300 - $2,350 - $2,500

net income = $31,500

8 0

3 years ago

The following information is taken from the income statement of Olympic, Inc.: Depreciation Expense $ 90,000 Amortization Expens

Lina20 [59]

Answer:

The correct option is D,$402,000.

Explanation:

In determining the cash flow provided by operating activities,we need to adjust the net income for effects of non cash items reported.It is important to note that the reverse of the earlier treatment of the items is what is required now.For instance depreciation and amortization were deducted in income statement,for cash flow purposes we need to add both to net income.

Net income $315,000

add depreciation $90,000

amortization $15,000

loss on sale of equipment $9,000

less gain on sale of building($27000)

Cash flow from operations $402,000

The cash flow from operating activities as adjusted is $402,000.

6 0

3 years ago