Definetion of inhumane

For each of the three independent situations below determine the amount of the annual lease payments. Each describes a finance l

MrMuchimi

Answer:

a. The annual lease payment for Situation 1 is $12,774.47.

b. The annual lease payment for Situation 2 is $71,486.40.

c. The annual lease payment for Situation 3 is $57,412.37.

Explanation:

The annual lease payments can be calculated using the formula for calculating loan amortization as follows:

P = (A * (r * (1 + r)^n)) / (((1+r)^n) - 1) .................................... (1)

Where,

<u>For Situation 1</u>

P = Annual lease payments = ?

A = Fair value of leased asset = $62,000

r = interest rate = Lessor’s rate of return = 10%, or 0.01

n = Number of years of lease term = 5

Substituting all the figures into equation (1), we have:

P = ($62,000 * (0.01 * (1 + 0.01)^5)) / (((1+0.01)^5) - 1)

P = $12,774.47

Therefore, the annual lease payment for Situation 1 is $12,774.47.

<u>For Situation 2</u>

P = Annual lease payments = ?

A = Fair value of leased asset = $421,000

r = interest rate = Lessor’s rate of return = 11%, or 0.11

n = Number of years of lease term = 10

Substituting all the figures into equation (1), we have:

P = ($421,000 * (0.11 * (1 + 0.11)^10)) / (((1 + 0.11)^10) - 1)

P = $71,486.40

Therefore, the annual lease payment for Situation 2 is $71,486.40.

<u>For Situation 3</u>

P = Annual lease payments = ?

A = Fair value of leased asset = $186,000

r = interest rate = Lessor’s rate of return = 9%, or 0.09

n = Number of years of lease term = 4

Substituting all the figures into equation (1), we have:

P = ($186,000 * (0.09 * (1 + 0.09)^4)) / (((1 + 0.09)^4) - 1)

P = $57,412.37

Therefore, the annual lease payment for Situation 3 is $57,412.37.

6 0

2 years ago

Paul currently has an investment portfolio that contains 2 stocks that have a total value equal to 1000000, what is the portfoli

snow_lady [41]

Paul has 2 stocks whose portfolio required rate of return is based on the value of $100,000. The correct answer for the portfolio given is 14% rate of return.

<h3>What is a Portfolio?</h3>

A Portfolio is a combination of financial investments.

These investments include various financial instruments such as bonds, stocks, cash or cash equivalents, commodities, futures, swaps, options and other derivatives.

People hire portfolio experts to manage their portfolio on their behalf because they have more knowledge than the owner of that portfolio.

These portfolio managers often charges some fees from their clients for the services they render them.

Investment portfolio are prepared by keeping in view their risk appetite of the clients.

Some clients are risk averse who can accept lesser returns while some clients are risk takers who wants more returns and are ready to accept more risk.

In the given question there are two stocks which has total value of $100,000.

The returns are :

Portfolio A $40,000 , Ra is 20%

Portfolio B $60,000, Rb is 10%

Learn more about portfolio at brainly.com/question/27184437

#SPJ1

3 0

1 year ago

Economists make assumptions to represent their political bias. focus their thinking. make models easier for students to understa

Sati [7]

Answer:

The correct answer is letter "D": better match the complexity of the real world.

Explanation:

Economists create models to <em>reflect real-world phenomena through simplified concepts</em>. Those models tend to adopt the most variables possible of economic events to analyze them in-deep, find out why they happen, attempt preventing them or finding a solution for them if feasible.

7 0

3 years ago

The amount of income under absorption costing will be more than the amount of income under variable costing when units manufactu

Sholpan [36]

Answer: A.exceed units sold

Explanation:

In Absorption Costing, All costs be it Fixed or Variable that are directly related to production are considered when computing the Cost of Production.

Under Variable Costs however, only variable Costs are considered for the computing of Cost of Production.

This difference in consideration of costs under each method leads to difference in income determination under each method.

Under Absorption Costing, fixed manufacturing costs are apportioned on produced units and the costs are only recovered when the units are sold but under variable costing, fixed manufacturing costs are treated as period costs and are therefore charged to the Income statement.

This means that, the amount of income under absorption costing will be more than the amount of income under variable costing when units manufactured exceed units sold.

8 0

2 years ago

Ferdows Electronics, Inc. (FEI), produces short runs of custom microwave radios for railroads and other industrial clients. Yo

zmey [24]

Answer:

9 kanban

Explanation:

The calculation of the number of kanban containers needed is given below:

= (Lead time demand + Safety stock) ÷ kanban size

where,

Lead time demand is

= 1,500 radios × 1 days

= 1,500 radios

Container size = 250 radios

Safety Stock is

= 1 ÷ 2 day × 1,500 radios

= 750 radios

So, the number of kanban containers needed is

= (1,500 radios + 750 radios) ÷ (250 radios)

= 9 kanban

We simply used the above formula to find out the required kanbans

3 0

3 years ago