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3 years ago

Duerr Company makes a $79,000, 30-day, 12% cash loan to Ryan Co. The note and interest to be collected at maturity is:

Business

1 answer:

anzhelika [568]3 years ago

5 0

Answer:

The maturity value is "$79790".

Explanation:

The given values are:

Principal

= $79,000

Time

= 30/360

Rate

= 12%

The interest on the cash loan to Ryan and Co will be:

= $79000\times 12 \ percent\times \frac{30}{360}$

= $790$ ($)

Maturity value

= $Principal\times (1+rate\times time)$

= $79000\times (1+(12 \ percent\times \frac{30}{360} )$

= $79000\times 1.0100$

= $79790$

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Consider a monopolist currently selling output Q to two different markets: Market A and Market B. This monopolist is able to pri

sweet [91]

Answer:

1. This is true because demand in market A is more inelastic which means demand curve and marginal revenue curve are steeper in this market. at any quantity marginal revenue will be higher in market A than in market B

2. This is true because market where demand is inelastic have a higher price. This is because revenue is increased when higher price is charged in market with inelastic demand.

3. This is false/uncertain because when price is higher in market a the quantity will be lower relativity. This is due to the downward sloping demand function in which price is increased quantity will decline.

Explanation:

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3 years ago

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3 years ago

g 4. The price of a home is $197,000. The bank requires 20% down payment and four points at closing. The cost of the home is fin

Molodets [167]

Answer:

a. $39,400

b. $157,600

c. $6,304

Explanation:

a. Down payment

Bank requires 20% down payment

= 20% * 197,000

= $39,400

b. Mortgage amount

= Price of house - down payment

= 197,000 - 39,400

= $157,600

c. Amount at 4 points:

= Mortgage * 4%

= 157,600 * 4%

= $6,304

4 0

3 years ago

Sutton Pointers Corporation expects to begin operations on January 1, 2015; it will operate as a specialty sales company that se

Neporo4naja [7]

Answer:

a. January= $300,000, February = $345,000 and March = $396,750

b. $1,041,750

c. January= $198,000, February = $296,700 and March = $374,205

d. $22,545

Explanation:

Sales Budget [to determine sales revenue]

January = $300,000

February ($300,000 × 1.15) = $345,000

March ($300,000 × 1.15^2) = $396,750

Revenue for the quarter = $1,041,750

Cash Receipts Schedule [to determine receipts and receivables balance]

January February March

Sales $300,000 $345,000 $396,750

Receipt - 66% ($198,000) ($227,700) ($261,855)

Receipt - 23 % - ($69,000) ($79,350)

Receipt - 11 % - - ($33,000)

Total Receipts ($198,000) ($296,700) ($374,205)

Account Receivable $102,000 $48,300 $22,545

6 0

3 years ago

Can you think of some other capital budgeting situations in which negative cash flows during or at the end of the project's life

guapka [62]

Answer:

Multiple IRRs:

Said another way, Multiple IRRs occur when a project has more than one internal rate of return. The problem arises where a project has non-normal cash flow (non-conventional cash flow pattern).

Internal rate of return (IRR) is one of the most commonly used capital budgeting tools. Investors make decisions by comparing the IRR of the project under consideration with the hurdle rate. If the IRR is greater than the hurdle rate, the project is accepted, otherwise it is rejected. When there are more than two IRRs, it is not exactly clear which IRR to compare with the hurdle rate.

Hurdle rate is the minimum required rate of return which businesses use as a benchmark to decide whether to invest in a project or not.

So a typical situation which can generate negative cashflows which can in turn lead to multiple IRRs towards the end of the project is where the conditions of investment become adverse towards the end of the project.

Imagine that toward the end of the lifecycle of a project, a forecasted increase external costs such as Interest Rate, influenced by government policies translates to an erosion of the bottom line generated by the business in that year.

Period 0 1 3 3 4 5

Unconventional cash flows ($)-19,000 16,000 16,000 6,000 6,000 -52,000

The series is non-conventional cash-flow pattern, which has two sign changes. This is the range in which the net present value of the non-conventional cash flow series is positive. The multiple IRR problem poses a series problem to analysts because the decision is not obvious.

Cheers!

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4 years ago