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Cloud [144]
2 years ago
7

Borrowers tend to prefer ________ to ________, whereas lenders prefer ________. arms; fixed-rate loans; fixed-rate loans fixed-r

ate loans; arms; arms fixed-rate loans; arms; fixed-rate loans arms; fixed-rate loans; arms
Business
1 answer:
Crazy boy [7]2 years ago
4 0
Borrowers tend to prefer fixed-rate loans than ARMs (adjustable-rate mortages), whereas lenders prefer ARMs. 

Fixed-rate loans are those with fixed interest rates, which means that they do not fluctuate or vary over time during the fixed rate period of the loan. As such, the borrowers are able to accurately predict how much their future payments will be.

ARMs are a type of mortgage wherein there can be changes or variations on the interest rate applied on the outstanding balance within the duration of the loan. 
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A project will produce an operating cash flow of $136,000 a year for three years. The initial cash outlay for equipment will be
pashok25 [27]

Answer:

     NPV  =$ 60,311.80

Explanation:

<em>The net present value (NPV) of a project is the present value of cash inflow  less the present value of cash outflow of the project.</em>

NPV = PV of cash inflow - PV of cash outflow

We can set out the cash flows of the project using the table below:

                                                  0                  1                   2                 3          

Operating cash flow                                136,000     136,000    136,000

Initial cost                              (274,000)

Working capital                     (61,000 )                                          61,000

Salvage value                        <u>               </u>    <u>             </u>      <u>           </u>      1<u>5000  </u>              

Net cashflow                     <u> (335,000)  136,000      136,000      212,000.</u>

PV  inflow= (136000)× (1.1)^(-1) + (136,000× (1.1)^(-2) + (112,000)× (1.1)^(-3)

       =  395,311.80

NPV =395,311.80 -335,000

       =$ 60,311.80

3 0
3 years ago
Parent Co. invested $1,000,000 in Sub Co. for 25% of its outstanding stock. Sub Co. pays out 40% of net income in dividends each
yawa3891 [41]

Answer:

(A) $110,000

(B) $44,000

(C) $440,000

(D) $176,000

Explanation:

Parent corporation invested $1,000,000 in sub corpora tion for 25% of its outstanding stock

Sub corporation pays out 40% of net income of dividend each year

(A) Parent's Co's share of Sub's Co's net income for the year is $110,000

(B) Parent's Co's share of Sub's Co's share of dividend for the year is $44,000

(C) The total net income can be calculated as follows

= 110,000 ×100/25

= 11,000,000/25

= $440,000

(D) The total dividend for the year can be calculated as follows

= 440,000 ×40/100

= 440,000 × 0.4

= $176,000

5 0
3 years ago
PLEASE HELP ASAP!!!! CORRECT ANSWERS ONLY PLEASE!!!!
sweet-ann [11.9K]
<span>Credit that is automatically renewed as debts are paid off.</span>
7 0
3 years ago
Read 2 more answers
In Opulencia, the marginal propensity to save is only 0.10. In an effort to promote the virtues of saving, the government starts
BartSMP [9]

Answer:

B) The multiplier falls, making spending less powerful.

Explanation:

As we know that the multiplier refers to a factor where the changes with respect to increase or decrease of another things is to be seen.

Also,

MPS + MPC = 1

And,

Multiplier = 1 ÷ (1 - MPC)

or

= 1 ÷ MPS

In addition to this, MPS has the negative relationship with the multiplier

that means if the MPS increased then the multiplier decreased and vice versa

Therefore the option B is correct

4 0
3 years ago
Tesla's use of renewable energy sources is an example of which type of corporate social responsibility?
gizmo_the_mogwai [7]

Answer:

D. Environmental responsibility​

Explanation:

Environmental responsibility can be defined as a set of efforts adopted by companies with the objective of reducing the negative impacts related to business activities and adopting practices aimed at environmental protection.

In the case of Tesla, the use of renewable energies is an example of environmental responsibility, as the company's focus is the production of electric vehicles, which, unlike vehicles that use fossil fuels, do not emit polluting gases that contribute to the greenhouse effect.

Therefore, Tesla offers an alternative that reduces the environmental impact of vehicles, attesting to their environmental responsibility and increasing the brand value, reliability and positioning with stakeholders, being a company aligned with the highest parameters of promoting sustainability.

5 0
2 years ago
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