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MissTica
3 years ago
5

Leaf Co. purchased from Oak Co. a $20,000, 8%, 5-year note that required five equal annual year-end payments of $5,009. The note

was discounted to yield a 9% rate to Leaf. At the date of purchase, Leaf recorded the note at its present value of $19,485. What should be the total interest revenue earned by Leaf over the life of this note?
a. $5,045
b. $5,560
c. $8,000
d. $9,000
Business
1 answer:
Veronika [31]3 years ago
4 0

Answer:

b. $5,560

Explanation:

The computation of the total interest revenue is shown below:

The five equal annual year-end payments = $5,009

For five years, the total amount is

= $5,009 × 5 years

= $25,045

And, the present value of recording the note is $19,485

So, the  total interest revenue earned would be

= Five years amount - present value of recording the note

= $25,045 - $19,485

= $5,560

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avanturin [10]

Answer:

$335,428

Explanation:

The computation of the plane operating cost is shown below:

Plane Operating Cost = Fixed cost + (Variable cost per unit × quantity) + (Variable cost per unit × quantity)

= $41,490 + ( $2,839 × 101 flights) + ($23 × 313 passengers)

= $41,490 + $286,739 + $7,199

= $335,428

We only considered the planned activity as we have to compute the plane operating cost for the planning budget

8 0
3 years ago
Lina wants to be a lawyer for her future career. Which extracurricular activity would be the most helpful? teacher’s aide marchi
Aleksandr [31]
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3 years ago
Read 2 more answers
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KiRa [710]

Answer:

a. estimated total manufacturing overhead cost in the numerator.

Explanation:

The formula to compute the pre-determined overhead rate is shown below;

As we know that

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Here estimated activity level can be estimated direct labor hours, estimated machine hours etc

Therefore the option a is correct

8 0
3 years ago
Explain . does consumption being contentment?
Vlad1618 [11]

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8 0
3 years ago
The Comil Corporation recently purchased a new machine for its factory operations at a cost of $328,325. The investment is expec
Solnce55 [7]

Answer: 15%

Explanation:

IRR is the discount rate that makes the NPV equal zero. Required rates of return that are less than the IRR will therefore result in a positive NPV and those that are higher will result in a negative NPV.

Use Excel to find the IRR.

= IRR(-328325,115000,115000,115000,115000)

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As the required rate of 13% is less than the IRR of 15%, the new machine will have a positive NPV.

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