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Verizon [17]
3 years ago
7

A start-up company that makes robotic hardware for CIM (computer integrated manufacturing) systems borrowed $1.3 million to expa

nd its packaging and shipping facility. The contract required the company to repay the lender through an innovative mechanism called "faux dividends," a series of uniform annual payments over a fixed period of time. If the company paid $305000 per year for five years, what was the interest rate on the loan?
Business
1 answer:
never [62]3 years ago
7 0

Answer:

Interest rate= 17.3% per five years

Explanation:

Giving the following information:

A start-up company that makes robotic hardware borrowed $1.3 million.

The contract required the company to repay the lender through an innovative mechanism called "faux dividends," a series of uniform annual payments over a fixed period of time. The company paid $305000 per year for five years.

Interest rate= (305000*5)/1300000= (1.173-1)*100= 17.3% per five years

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Answer:

e. Increase by $4,500.

Explanation:

<u>Analysis of the effect of discontinuing Product Line C</u>

Income :

Rent Income                                                    $6,000

Savings : Fixed Costs - Avoidable                 $3,000

Total Income                                                   $9,000

Costs :

Opportunity Cost - Contribution Margin       $4,500

Total Costs                                                      $4,500

Net Income (Loss)                                           $4,500

therefore,

By discontinuing Product Line C, operating income for the company will likely  Increase by $4,500

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The level at which individual is viewed by Society is called​
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A company's culture is made up of:
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When using absorption costing when production is greater than sales, a portion of fixed overhead is allocated to the products sold.

<h3>What happens when production is greater than sales?</h3>
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