Answer:
D. John
Explanation:
John has an annual income of $100,000 which is equivalent to a monthly salary of $ 8,334.00 ($100,000 divide by 12 months)
Applying the 28/36 borrowing rule, Mr. John cannot exceed 36 percent of his monthly income to service debts. It means that John has $ 3000 available every month to service his loans.
John intends to take a loan of $ 10,000. This amount is within his ability to pay. Even if he has other debts, he only needs months to clear the loan plus interest.
If we apply the same rule to Paul, his monthly salary is $2, 084.00. He has $ 750.00 available to pay the loan every month. A loan of $ 50,000 with interest will take about seven years to clear. Considering he may want to take other loans in that period and the value of the car by then, Paul is likely to default.
Eileen will have $720 available for repayments per month and annually $ 8640.00 to repay $400,000.00; she will need about 47 years. Considering her age, it's not viable.
Answer:
b. 20
Explanation:
For 5 flights per month
Total Cost = Variable cost + Fixed cost
Total Cost = Fuel, crew, and airplane maintenance cost + Airport fee
Total Cost = (5 X 10000) + 20,000 = $70,000
For 6 flights per month
Total Cost = Variable cost + Fixed cost
Total Cost = Fuel, crew, and airplane maintenance cost + Airport fee
Total Cost = (6 X 10000) + 20,000 = $80,000
Additional Cost for 6th flight = $80000-70,000 = $10,000
Minimum No. of Passenger to cover the cost = Additional cost / Ticket price per seat
Minimum No. of Passenger to cover the cost = $10,000 / $500 = 20 seats passengers.
Explanation:
C. Both demand and supply change
Answer:
Stage 1: hear from others and listen to feedback
Stage 2: Create new ideas based on that feedback
Stage 3: Create several prototypes and choose one. Then test the prototype
Stage 4: Manufacture the prototype you chose
Explanation:
Answer:
Turk should purchase Machine B
Explanation:
<u>Our first step</u> will be to multiply each cashflow by the factor.
Then we will add them to get the present value of the cash flow
![\left[\begin{array}{cccc}-&A&factor&Present \: Value\\Year \: 1&5,000&0.8696&4,348\\Year \: 2&4,000&0.7561&3,024.4\\Year \: 3&2,000&0.6567&1,313.4\\Total&11000&-&8,685.8\\\end{array}\right]](https://tex.z-dn.net/?f=%5Cleft%5B%5Cbegin%7Barray%7D%7Bcccc%7D-%26A%26factor%26Present%20%5C%3A%20Value%5C%5CYear%20%5C%3A%201%265%2C000%260.8696%264%2C348%5C%5CYear%20%5C%3A%202%264%2C000%260.7561%263%2C024.4%5C%5CYear%20%5C%3A%203%262%2C000%260.6567%261%2C313.4%5C%5CTotal%2611000%26-%268%2C685.8%5C%5C%5Cend%7Barray%7D%5Cright%5D)
Then we subtract the machine cost:
8,685.8 - 9,000 = -314.2 This Machine has a negative value. It is not convinient to purchase this machine.
![\left[\begin{array}{cccc}-&B&factor&Present \: Value\\Year \: 1&1,000&0.8696&869.6\\Year \: 2&2,000&0.7561&1,512.2\\Year \: 3&11,000&0.6567&7,223.7\\Total&14,000&-&9,605.5\\\end{array}\right]](https://tex.z-dn.net/?f=%5Cleft%5B%5Cbegin%7Barray%7D%7Bcccc%7D-%26B%26factor%26Present%20%5C%3A%20Value%5C%5CYear%20%5C%3A%201%261%2C000%260.8696%26869.6%5C%5CYear%20%5C%3A%202%262%2C000%260.7561%261%2C512.2%5C%5CYear%20%5C%3A%203%2611%2C000%260.6567%267%2C223.7%5C%5CTotal%2614%2C000%26-%269%2C605.5%5C%5C%5Cend%7Barray%7D%5Cright%5D)
9,605.5 - 9,000 = 605.5 This machine NPV is positive it is convient.
