Answer:
Following are the responses to the given question:
Explanation:
Banks are just an integral aspect of an economy's flow of money. When a big steel factory fails, jobs and GDP will be lost, yet financing inside the economy would not be available because of the main banking collapse in decrease its availability of credit throughout the industry, a large bank is unable to do even more damage to the economy than a huge metal fabricator.
Answer:
1. NPV calculation
Option 1 ( with Greewood fertilizer) : $2.256
Option 2 ( with Peter's Fertilizer) : $3.835
2. Rate of return calculation:
Option 1: 45.12%
Option 2: 95.875%
Option 2 should be chosen as it provides higher NPV.
Explanation:
1. The detailed calculation for each option is:
Option 1: Present value of sales proceed - initial cost = (8/1.05^2) - 5 = $2.256
Option 2: Present value of sales proceed - initial cost = (10/1.05^5) - 4 = $3.835.
2. The detailed calculation for each option is:
Option 1: NPV/Initial cost = 2.256/5= 45.12%
Option 2: NPV/Initial cost =3.835/10 = 95.875%
To assess which option should be picked with the assumption of infinite time horizon, NPV should be key driver. As Option 2 has higher NPV, Option 2 is chosen.
Answer:
The percentage return on the bond is 8.02%
Explanation:
The return on the bond comprises of the increase or decrease in bond's price plus the coupon earned by investors on the bond in the year.
The difference in market price is considered that is the amount could be sold for in the market price at that point in time.
The return on the bond is computed thus:
closing price minus opening price ($1,982.79-$1,946.61)=$36.18
plus coupon received($2000*6%) =$120
total return $156.18
% return =total return/opening price
=$156.18/$1946.61
=8.02%
<span>Your debt to income ratio determines how likely you are able to make your payments. When a high percentage of your available credit is been used, this can indicate that your money is overextended, and you may be more likely to make late and or missed payments.</span>
Answer: The correct answer is Account A.
Explanation: The best type of account for Kylie is checking account A for three different reasons.
1. She has the $500 minimum balance to open the account.
2. She plans on using her bank’s ATM to make deposits and withdrawals, which are free for this account.
3. Kylie sometimes over draws her account, and Account A offers overdraft protection.
