Answer:
Spreading a loan into a series of fixed payments.
Explanation:
When you ask how loan payments work, there's no better way to explain it that knowing that you will have to pay down a balance over a period of time. When you ask for a loan, you will have to spread it into a series of fixed payments (the total payment remains equal all the time) in which you will have to cover for the principal loan (the amount of money you requested) and the loan's interest (which is what the lender gets paid for the loan). This monthly payment even though it remains the same, covers for the following: the interest costs (which are at their highest at the beginning) and reducing the loan balance. As time goes on, a bigger portion of what you are paying goes toward the principal loan, and the interest you pay is proportionally less each month.
Answer:
Question 1:
The correct option is "C"
Question 2:
The correct option is "D"
Explanation:
Question 1:
A firm amplifies benefit b comparing minimal income (MR) with peripheral cost (MC). A change in fixed costs like singular amount charge doesn't change MC, in this way firm delivers same yield. Be that as it may, higher fixed cost expands absolute expenses, consequently benefit diminishes.
Question 2:
Increment in factor cost will build MC and increment ATC, along these lines firm will diminish yield and benefit will fall.
Im pretty sure that it is d
Answer:
Determine the net cash flows for the first year of the project:
- $90,816 - $167,600 = -$76,784
Determine the net cash flows for years 2 - 9 of the project:
Determine the net cash flows for year 10 of the project:
- $90,816 + $12,800 = $130,616
Explanation:
additional sales 8,600 units at $46 each = $395,600
required investment $167,600
10 year useful life and $12,800 residual value
selling expenses 4% of total revenue
manufacturing costs per unit:
- Direct labor $8
- Direct materials $22
- Fixed factory depreciation $8.40
- Variable factory overhead $3.60
- Total $42.00
net cash flows:
total revenue $395,600
direct materials -$189,200
direct labor -$68,800
variable overhead -$30,960
selling expenses -$15,824
net cash flow = $90,816