Answer:
3.73%
Explanation:
The computation of the rate of interest that makes the equivalent is shown below:
As we know that
Present value=Cash flow × Present value discounting factor ( interest rate% , time period)
Let us assume the interest rate be x
where,
Present value of $400,000 is
= $400,000 ÷ 1.0x ^5
And,
Present value of $1,000,000 be
= $1,000,000 ÷ 1.0x^30
Now eqaute these two equations
$400,000 ÷ 1.0x^5 = $1,000,000 ÷ 1.0x^30
(1.0x^30) ÷ (1.0x^5) = $1,000,000 ÷ $400,000
1.0x^(30 - 5)=2.5
1.0x^25=2.5
1.0x = (2.5)^(1 ÷ 25)
x =1.03733158 - 1
= 3.73%
Answer:
a.$7.43 per machine hour
Explanation:
The computation of the single plant wide rate is shown below:
Single plant wide rate = Total overhead cost ÷ Machine hours
where,
Total overhead cost = $84,000 + $72,000 = $156,000
And, the machine hours is
= 1,000 units × 5 + 2,000 units × 8
= 5,000 + 16,000
= 21,000 machine hours
So, the single plant wide rate is
= $156,000 ÷ 21,000 machine hours
= $7.43 per machine hour
Answer:
$99.09
Explanation:
Calculation for What is Tricki's expected price when it begins trading ex-rights
Using this formula
Expected price=Stock rights-on- [ (Stock rights-on-Subscription price)÷(10 rights+ One share)]
Let plug in the formula
Expected price=$100-[($100-$90)÷(10+1)]
Expected price=$100-($10÷11)
Expected price=$100-$0.91
Expected price=$99.09
Therefore Tricki's expected price when it begins trading ex-rights will be $99.09
Answer:
Perfectly inelastic
Explanation:
A demand is perfectly inelastic when quantity demanded does not change in response to a change in price.
Answer: B - The interest rate may increase after an inductor period.