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Vikki [24]
3 years ago
6

Antonio would like to replace his golf clubs with a​ custom-measured set. A local sporting goods megastore is advertising custom

clubs for ​$710​, including a new bag.​ In-store financing is available at 5.22 ​percent, or he can choose not to renew his ​$600 certificate of deposit​ (CD), which just matured. The advertised CD renewal rate is 5.58 percent. Antonio knows the​ in-store financing costs would not affect his​ taxes, but he knows​ he'll pay taxes​ (25 percent federal and 5.75 percent​ state) on the CD interest earnings. Should he cash the CD or use the​ in-store financing?​ Why?
Business
1 answer:
AlexFokin [52]3 years ago
6 0

Answer:

Antonio and Replacement of Golf Clubs

a. He should cash the CD and use the proceeds to finance part of the golf clubs.

b. The reason is that he would pay more in in-store financing totaling $37.06 per annum than the net interest he would generate from the CD totaling $23.18 per annum.  And Antonio would incur a net loss of $13.88 if the CD was renewed unlike the $5.74 if the CD were not renewed.

Explanation:

Option 1: Renew Certificate of Deposit (CD):

Interest earned  = $33.48 ($600 * 5.58%)

Taxes                  =   10.30 ($33.48 * 30.75%)

Net Income         = $23.18

Cost of in-store financing = $37.06 ($710 * 5.22%)

Net Loss(overall) = $13.88 ($37.06 - $23.18)

Option 2:

Sale-off of CD = $600

Net financing required = $110 ($710 - $600)

Cost of financing = $5.74 ($110 * 5.22%)

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liubo4ka [24]

Answer:

<u>Physical flow schedule</u>

Inputs

Beginning Work in Process                86,300

Add Units Started                              105,900

Total                                                    192,200

Outputs

Units Completed and Transferred   172,900

Units in Ending Work in Process       19,300

Total                                                    192,200

Explanation:

A physical flow schedule is simply a schedule of units introduced into the process and units outputs without expressing them to equivalent units.

Units Introduced must always be equal to units outputs in physicals terms.

<em>Units Completed and Transferred = Beginning Inventory + Units Started - Units in Ending Work in Process</em>

                                                        = 86,300 + 105,900 - 19,300

                                                        = 172,900

6 0
2 years ago
Name the social issues that you have chosen and motivate why you have chosen it​
Finger [1]

Answer:

I would choose violent crime.

Explanation:

It motivates me to choose it since it can help to make most of the other issues easier to tackle since where there is violent crime, there is usually the other issues stated in the list.

I hope this helps :)

3 0
2 years ago
James owns a vacant property. By law, he can build the following building types, which generate a return on investment as listed
Dima020 [189]

Answer:

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Explanation:

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It is a mix of operating income and the average operating assets through the return on investment could be computed

Since the return on investment is already given in the question

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So the office building has a higher return on investment i.e 13.5% which reflects the best for property usage.

6 0
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If marginal utility is rising, then total utility is also rising.
Natali5045456 [20]

\huge{\textbf{\textsf{{\color{navy}{An}}{\purple{sw}}{\pink{er}} {\color{pink}{:}}}}}

<h2>TRUE</h2>

<h2>TRUE</h2>

  • Thanks
  • Hope it helps :).
5 0
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Impression management theory suggests that people change their attitudes to match their behaviors in an effort to
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Answer:

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