<span>The difference may lie in the project life, sometimes referenced as the planning horizon. A project may have a large internal rate of return (irr), but a very short project life. A second project might have a lower irr, but a much longer life. In that case, the second project will return less per year, but will provide a return for many more years, resulting in a higher pw.</span>
Answer:
The amount to be received onthe coupon date is $154000.
The amount to be received at bonds maturity is $4154000.
Explanation:
amount received on the next coupon date = 4000*$1000*7.7%*6/12
= $154000
amount to receive when the bonds mature = face value + interest
= 4000*$1000 + $154000
= $4,000,000 + $154000
= $4154000
Therefore, the amount to be received onthe coupon date is $154000 and the amount to be received at bonds maturity is $4154000.
Answer:
Break-even point in dollars= $36,364
Explanation:
Giving the following information:
A firm is selling two products, chairs and bar stools, each at $50 per unit. Chairs have a variable cost of $25, and bar stools $20. The fixed cost for the firm is $20,000.
To calculate the break-even point in dollars for the firm, we need to use the following formula:
Break-even point (dollars)= Total fixed costs / [(weighted average selling price - weighted average variable expense)/ weighted average selling price]
weighted average selling price= (selling price* weighted sales participation)= $50
weighted average variable cost= (variable cost* weighted sales participation)
weighted average variable cost= (25*0.5 + 20*0.50)= $22.5
Break-even point in dollars= 20,000/ [(50 - 22.5)/ 50]= $36,364
Answer:
Explanation:
Demand in business is the desire of consumers to purchase goods and services at the given prices.
The available options are:
A. I and III
B. I and IV
C. II and III
D. II and IV
Answer:
C. II and III
Explanation:
IO tranche which is an acronym for Interest Only tranche is defined as a form of tranche which earns interest only from a secured loan which is derived from Principal Only tranche.
However, Interest Only tranche is quite different from a typical bond, simply because when market interest rate increases the rate of prepayment decreases, which in turn makes the rate of maturity to be longer. Thereby when interest rates increase, prices increase, and vice versa.
Hence the true statements are:
II When interest rates rise, the price of the tranche rises
III When interest rates fall, the price of the tranche falls
