Complete question:
Today is January 1, 2009. The state of Iowa has offered your firm a subsidized loan. It will be in the amount of $10,000,000 at an interest rate of 5 percent and have ANNUAL (amortizing) payments over 3 years. The first payment is due today and your taxes are due January 1 of each year on the previous year's income. The yield to maturity on your firm's existing debt is 8 percent. What is the APV of this subsidized loan? If you rounded in your intermediate steps, the answer may be slightly different from what you got. Choose the closest.
A. -$3,497,224.43 B. $417,201.05 C.$840,797 D. None of the above
Answer:
$840,797 is the APV of this subsidized loan
Solution:
Input the loan in a financial equation first and resolve the payment:
PV=10,000,000
N= 3I = 5%
PMT = 3,672,085
Now, find the APV of the loan:
CF0 = $10,000,000
CF1= -$3,502,085
= -$3,172,085 - .66 * $500,000CF2
= -$3,556,011CF3
= -$3,612,632I
= 8%
APV = $840,797
Answer:The CEO should implement
Deming's 14 points.
Explanation:
Deming's 14 points is a management practice that helps company improve their productivity and quantity.
Also, Deming contain 14 key principles for management for transforming business effectiveness.
<span>A good rule is that you will sno more than 25 - 30% of your gross income. You ought to spend close to 30 percent of your pay on lodging. You may hear that dependable guideline from a monetary counselor or parent, a landowner or bank. It's implanted in online spending adding machines and government approaches. The standard business proposal for contract installments is that close to 30 percent of your gross salary ought to go to your regularly scheduled installments.</span>
<span>Represents all the combinations of goods and services that a consumer may purchase given current prices within his or her given income.
the formula is y=Pb B + Pw W
</span>
Hope that helped!
Answer:
Normal balance
Explanation:
Accounts are expected to have either debit or credit balance, depending on their classification. The accounting equation of Assets is equal to equity plus liabilities is the basis for account classification. Assets accounts are on one side, while accounts relating to equity and liabilities are on the other.
Accounts have normal balances if the balances at the end of a period are as expected. Assets accounts are expected to have debit balances, while equity and liabilities accounts should have credit balances.
