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Vinvika [58]
3 years ago
11

The Tattle Teller has a printing press sitting idly in its back room. The press has no market value to another printer because t

he machine utilizes old technology. The firm could get $480 for the press as scrap metal. The press is six years old and originally cost $174,000. The current book value is $3,570. The president of the firm is considering a new project and feels he can use this press for that project. What value, if any, should be assigned to the press as an initial cost of the new project?
Business
1 answer:
Mrac [35]3 years ago
4 0

Answer: $480

Explanation:

Given that,

Scrap value of metal = $480

press is six years old, Original cost = $174,000

Current book value = $3,570

Since, we know that the realizable value of the printing press is only $ 480, so  tattle teller should assign the same as the initial cost of the new project.

Hence, $480 will be the initial cost of press for the new project.

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While the evidence suggests that over long periods of time that stocks will outperform bonds, individuals with a long-term inves
Scrat [10]

Answer:

Stocks and Bonds

Yes.  It is a rational behavior for individuals with a long-term investment horizon to choose to invest in bonds rather than investing in stocks despite the overwhelming "evidence that suggests that over long periods of time stocks still outperform bonds."

Rational behavior involves making rational choices that provide optimal levels of benefit or utility for the individual. People who make rational choices would rather choose bonds with lower risks and returns than stocks with higher risks and returns.

Explanation:

Every rational investor would prefer to reduce her risk exposure instead of increasing it.  Every investor is also aware that  investments with higher risks attract higher returns.  However, determining the certainty of the returns is difficult.

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3 years ago
An approach to combining risk identification, risk assessment, and risk appetite into a single strategy. is known as risk protec
Bad White [126]
If this is for apex it should be D

8 0
3 years ago
Kate and Bill secured a loan with a 75% loan-to-value ratio. The interest rate was 7.125% and the term was for 30 years. The fir
Volgvan

An appraised price is an evaluation of a property's fee-based totally on a given factor in time.

An appraised cost is an evaluation of a property's value based totally on a given factor in time. The evaluation is accomplished by means of a professional appraiser for the duration of the mortgage origination technique. The appraiser is normally selected by way of the lender but the appraisal is paid for by way of the borrower.

Actual property professional opinion is typically towards the idea of paying extra than a property's appraised price. Even if you make up the difference on below-appraised assets, you may have assets well worth much less than what you paid.

If buyers are few and far among whilst you list your house, there may be a hazard the marketplace cost may be lower than the appraised price. then again, in case you're seeing a ton of interest in your own home from a couple of consumers, you could discover that the marketplace value is better than the appraisal value.

Learn more about appraised value here: brainly.com/question/26080329

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4 0
1 year ago
Your uncle is about to retire, and he wants to buy an annuity that will provide him with $75,000 of income a year for 20 years,
Nataly_w [17]

Answer:

The annuity will cost him $963,212.95.-

Explanation:

Giving the following information:

Cash flow= $75,000

Interest rate= 0.0525

n= 20

First, we need to calculate the final value. We will use the following formula:

FV= {A*[(1+i)^n-1]}/i + {[A*(1+i)^n]-A}

A= annual cash flow

FV= {75,000*[(1.0525^20) - 1]/0.0525} + {[75,000*(1.0525^20)] - 75,000}

FV= 2,546,491.88 + 133,690.82= $2,680,182.70

Now, the present value:

PV= FV/(1+i)^n

PV= 2,680,182.70/(1.0525^20)

PV= $963,212.95

4 0
3 years ago
A collateralized mortgage obligation pays a 2% coupon rate on the first tranche plus any prepayments until its $50 million par v
Sloan [31]

Answer:

The correct answer is b) The first tranche has the highest prepayment risk.

Explanation:

A collateralized mortgage obligation (CMO) is a type of security backed by mortgage. It is comprised of a pool of mortgages that are bundled together and sold as an investment. Prepayment risk is the risk of loss of interest income due to early repayment of the principal by the borrower.

In the given situation, there are three tranches. The first tranche has the highest prepayment risk because it is receiving principal at the earliest. Hence, there is more of a chance of this principal being returned early and the CMO holder losing out on potential interest. Therefore, the prepayment risk of the first tranche is the highest among all three tranches.

4 0
3 years ago
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