"how does an investor earn money by buying bonds at a discount"

Munoz Airline Company is considering expanding its territory. The company has the opportunity to purchase one of two different u

vredina [299]

Answer:

The correct answer is 2.7 years for plane 1 and 4 years for plane 2.

Plane 1 should be accepted.

Explanation:

According to the scenario, the computation of the given data are as follows:

Plane 1 Cost = $15,660,000

Annual cash inflow = $5,800,000

Plane 2 cost = $34,400,000

Annual cash inflow = $8,600,000

So, we can calculate the payback period by using following formula:

Payback period = cost ÷ Annual cash flow

So, For Plane 1 = $15,660,000 ÷ $5,800,000 = 2.7 years

For plane 2 = $34,400,000 ÷ $8,600,000 = 4 years

As, Plane 1 has less payback period so it should be accepted.

7 0

3 years ago

The price of a good or service must ____.

monitta

Answer:

c. cover the cost of producing and selling the product

6 0

2 years ago

Match the legislation with the correct description.

jeka94

Equal pay act is obviously C

3 0

3 years ago

The primary difference between accrued revenues and unearned revenues is that accrued revenues have:________. a) been recorded a

adoni [48]

Answer: D) not been recorded and unearned revenues have.

Explanation:

Accrued revenue is a term used to describe a sale that has been recognized by the seller, but which has not yet been billed to the customer. Accrued revenue is needed in order to match revenues with expenses. The absence of accrued revenue would tend to show excessively low initial revenue levels and low profits for a business, which does not properly indicate the true value of the organization.

Unearned revenue on the other hand is the money received from a customer for work that has not yet been performed (in advance payment). This is an advantage to the seller who now has the cash to perform the required services. Unearned revenue is a liability for the recipient of the payment.

3 0

3 years ago

Michael is maximizing utility by consuming three colas at $3 a piece and four hot dogs. The last cola gave him 300 units of util

marusya05 [52]

Answer:

C. $5

Explanation:

Marginal utility is the benefit gained from consuming an additional unit of a product or service.

According to the question, Michael is maximizing utility when Marginal Utility / Price of colas is equal to Marginal Utility / Price of hotdogs. Marginal utility can thus be found by solving the following equation for X (the price of hot dog)

MU/P of Colas = MU/P of hot dogs

300/3 = 500/X

3/300 = X/500

X = (3/300) x 500

X = 0.01 x 500

X = 5

Hence, the price of each hot dog is $5.

5 0

3 years ago