We are asked to find the APR on this load.
Given:
Purchased price: $2,900,000
Monthly payment: 14,900
Amount borrowed: 0.80($2,900,000) = $2,320,000
Using the PVA equation:
PVA = $2,320,000 = $14,900 [{1-1/(1+r)]^360}/r]
r = 0.560%
APR is the monthly interest rate times the number in months of the year.
APR = 12(.560) = 6.72%
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Answer:
Flexibility option
Explanation:
False: It can be used equally for both.
Firms often have an option to vary inputs to the production or change the output from production. Such options are known as flexible production options.\ real option to expand.
Answer:
The value that Perfection records in it's books on Jan 2, 2021 related to its investment in Satisfactory is:
$486,000.
Explanation:
a) Data and Calculations:
Net asset value of Satisfactory = $1,944,000 on acquisition date
Stake purchased by Perfection = 25%
25% of the net asset value of Satisfactory = $486,000 ($1,944,000 * 25%)
b) There is no goodwill arising from the investment in Satisfactory. The equity method will be used to account for the investment in the Satisfactory. The Equity Method involves recording the investment in an associated company like Satisfactory when Perfection's ownership interest in Satisfactory is valued at 20–50% of the net assets.
Answer:
The correct answer is letter "A": higher employment, higher output, and a higher price level.
Explanation:
Expansionary policy is a macroeconomic concept that focuses on expanding the economy to counteract cyclical downturns. Expansionary policies can be used through monetary policy to expand the money supply or to increase government expending and tax cuts to stimulate the economy. Under this scenario, interest rates are lower and aggregate demand increases. In that case, employment, output, and price level will be higher. Though, the latter is dangerous since it could lead to high inflation.
