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2 years ago

15

Frank and Lucy have just been married and trying to arrange to buy a home. Frank makes about $35,000 annual income and Lucy make

s about $45,000 annual income. What is the maximum price they should be willing to pay for a home?

2 answers:

jasenka [17]2 years ago

8 0

Answer:

Its is 200,000, he is right

Explanation:

hram777 [196]2 years ago

5 0

200,000$ is the answer.

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underrepresented student scholarship.

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Why is a high-quality bond typically considered a lower-risk investment than a stock?

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<span> <span>In investment, the term risk can be defined as the possibility of the investor losing all or part of their capital in a given venture. High quality bonds are considered lower risk because the the investor is promised to receive face value after a certain period unlike stocks that do not carry the same promise. Returns on high quality bonds are also guaranteed in the form of fixed interest rates whereas in stocks, a company may pay dividends but this is not an obligation on their part. Lastly bonds are safer investment as they are less susceptible to abnormal price changes unlike stocks whose prices can easily swing in either direction.</span></span>

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3 years ago

"A leading environmental group recently published a report contending that humans are running a "resource deficit" because we ar

adelina 88 [10]

Answer:

c. disagree with the report, in part because it ignores the mitigating effects of technological change.

Explanation:

As the human is making use of most of the earth available resources they are running towards deficits as no country has self-sufficiency in terms of the land, labor and capital and natural resources and they are getting depleted at a much faster rate than could be generated.

Thereby resulting to rise in inflation and decline in the economic productivity growth while some of the economists disagree with the report ignores the impacts of technologies.

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3 years ago

You are considering a new product launch. The project will cost $1,006,000, have a four-year life, and have no salvage value; de

Serjik [45]

Answer:

A) In Best Case: revenues rise by 10% while costs decline by 10%. In the worst case, profits are declining by 10%, while costs are rising by 10%.

Scenario Unit sales Variable costs Fixed costs

Base 360 $16,300 $334,000

Best 396 $14,670 $300,600

Worst 324 $17,930 $367,400

b), c) Using the tax shield approach, the OCF and NPV for the base case estimate is:

OCF(base) = [($19,800 – 16,300)(360) – 334,000](0.60) + 0.40(1,006,000/4)

OCF(base)= $656,200

NPV(base) = –$1,006,000 + $656,200(PVIFA14%,4)

NPV(base) = $905,978.01

OCF(worst) = [($19,800 – 17,930)(324) – 367,400](0.60) + 0.40(1,006,000/4)

OCF(worst)= $243,688

NPV(worst) = –$1,006,000 + $243,688(PVIFA14%,4)

NPV(worst) = $ (295,963.28)

OCF(best) = [($19,800 – 14,670)(396) – 300,600](0.60) + 0.40(1,006,000/4)

OCF(best)= $1,139,128

NPV(best) = –$1,006,000 + $1,139,128(PVIFA14%,4)

NPV(best) = $2,313,091.27

d) OCF and NPV with Fixed Costs 344,000

OCF(base) = [($19,800 – 16,300)(360) – 344,000](0.60) + 0.40(1,006,000/4)

OCF(base)= $650,200

NPV(base) = –$1,006,000 + $650,200(PVIFA14%,4)

NPV(base) = $888,295.74

e) (Change in NPV in Case d wrt Case c)/Change in FC,

(888,295.74 - 905,978.01)/(10,000) = -1.75

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3 years ago

The Merchant Company issued 10-year bonds on January 1. The 15% bonds have a face value of $100,000 and pay interest every Janua

White raven [17]

Answer:

c) $14,065

Explanation:

Because I said so

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3 years ago