Answer:
You Should invest
Explanation:
Let the IRR be x.
Now , Present Value of Cash Outflows=Present Value of Cash Inflows
103,000 =130,000/(1.0x)
Or x= 26.214%
Hence the IRR of this investment opportunity is 26.2% (approx)
Cost of Capital = 12%
The IRR rule says that one must accept. This is because the IRR is greater than the cost of capital.
Hence the correct answer is : should invest
Answer:
$31,250.
Explanation:
(100,000 + 15,000 + 3,000 + 12,000 - 25,000 + 105,000) * 25% + 5,000 = 31,250
Answer:
Same! I look up a question and it says seems like there's a connection issue.
Explanation:
Only way to get questions is look them up on Google and they pop up on there website. hope they fix it soon
Answer:
$16,000
Explanation:
Computation of what the customer must deposit for purchasing $100,000 of corporate bonds at 80% in a margin account
Since the minimum maintenance is the standard that is set by FINRA is the greater of 7% of the face amount or 20% of the market value.
Hence,
The bonds are purchased at 80% of $100,000 par, thus the first step is to find the 80% of $100,000. Calculated as :
80%×$100,000= $80,000
Second step is to find the 20% of $80,000 which is calculated as:
20% ×$80,000 = $16,000.
Third step is to find the 7% of $100,000, calculated as:
7% of $100,000 face = $7,000.
Based on the above calculation the greater amount is $16,000 which means that the customer must deposit the amount of $16,000 which is the greater amount.
Answer:
Check the explanation
Explanation:
DR Cash
DR Loss on sale of receivables
DR Receivable from factor
CR Accounts receivable
Debit Credit
1 Cash 58500 =65000*(1-10%)
Loss on sale of receivables 2200
Receivable from factor 3800 =5500-(65000*2%)
Accounts receivable 60000