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MrRa [10]
3 years ago
14

Here are the cash flows for two mutually exclusive projects: Project C0 C1 C2 C3 A −$ 34,400 +$ 13,700 +$ 13,700 +$ 13,700 B − 3

4,400 0 0 + 43,200 a. At what interest rates would you prefer project A to B?
Business
1 answer:
Natali [406]3 years ago
5 0

Answer:

7.89%

Explanation:

We can find the IRR of Project A and Project B is 9% and 8% respectively

(please see the calculation in excel in attachment)

So if the interest rate below 8% then Project A is more profitable than project B.

You can find NPV of each project follow the decrease in interest rate in the excel attached.

Download xlsx
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Dana is assigned to create a training program for newly hired mortgage loan officers. She has the ____ to complete this assignme
julsineya [31]

Dana is assigned to create a training program for newly hired mortgage loan officers. She has the "responsibility" to complete this assignment.

<h3>What is mortgage loan?</h3>

A mortgage loan is a secured loan that enables you to access money by giving the lender collateral in the form of an immovable asset, like a home or commercial property.

The main difference between the loan and mortgage loan is-

  • Any financial arrangement where one party receives a lump sum and agrees to repay the money is referred to as a "loan."
  • A mortgage is a specific kind of loan used to fund real estate. Although a specific kind of loan, not all loans are mortgages. Loans that are "secured" are mortgages.

To know more about the mortgage, here

brainly.com/question/1318711

#SPJ4

6 0
2 years ago
In the logistics-systems design matrix, volume, cost and speed of delivery are three variables (assume three levels: low, modera
Digiron [165]

Answer:

High volume

Low cost

Moderate speed of delivery.

Explanation:

High - volume : The train can a large volume of goods at a single time as high number of coaches can be added to the train.

Low - cost : As the volume of goods carried in a single time by train is very large therefore the cost of transportation reduces to lowest than other means like air logistics.

Moderate speed of delivery : The speed of logistic delivery from one part to another part is comparatively lower than the air logistics transport system but is more than the road  logistics transport system in terms of long distance like in different states.

7 0
3 years ago
The demand curve facing a perfectly competitive firm is
ICE Princess25 [194]

Answer:

Option (E) is correct.

Explanation:

Under the perfectly competitive market conditions, there are large number of buyers and sellers and there is no restrictions on the entry and exit of the firms. Prices of the goods are determined by the market forces and the demand curve for a firm in a perfectly competitive environment varies significantly from the market demand curve. The demand curve is horizontal because all the goods in a perfectly competitive market are considered as perfect substitutes.

7 0
3 years ago
Pleasant Hills Properties is developing a golf course subdivision that includes 225 home lots; 100 lots are golf course lots and
Solnce55 [7]

Answer:

Explanation:

This is a question about allocation based on how much the street frontage will be valued in future. That value will then be allocated to the joint cost to see how much to apportion to Street Frontage now.

The total value of the Street Frontage after development is,

= 125 lots * $70,000

= $8,750,000

The total value of Golf lots are,

= 100 lots * $100,000

= $10,000,000

Adding them up,

= 10,000,000 + 8,750,000

= $18,750,000

This is the total amount of the company could make and therefore the lot's value.

Company incurred the following costs.

= 1,850,000 * 1,450,000

= $3,300,000

The amount of joint costs to be allocated to Street Frontage will be,

= 8,750,000/ 18,750,000 * 3,300,000

= $1,540,000

The amount to allocate to Street Frontage based on the total value of the lot is $1,540,000.

3 0
3 years ago
On January 1, 2021, the Blackstone Corporation purchased a tract of land (site number 11) with a building for $600,000. Addition
NikAS [45]

Answer:

Blackstone Corporation

1. A schedule that discloses the individual costs making up the balance in the land account in respect of land site 11 as of September 30, 2022:

Cost of Land =              $600,000

Broker's Commission =  $36,000

Legal Fees  =                    $6,000

Title Insurance =              $18,000

Razing of old building =  $75,000

Total  =                          $735,000

2. A schedule that discloses the individual costs that should be capitalized in the office building account as of September 30, 2022:

Payment to contractor for building =  $3,000,000

Plans, specifications, and blueprints =      $12,000

Architect's fees (design & supervision = $95,000

Capitalized Interest ($3m x14%/10 x 2) = $84,000

Total =                                                    $3,191,000

Explanation:

a) The cost of land to recognize includes the actual cost for the parcel of land, including the building which was razed.  All other expenses incurred ordinarily and necessarily in order to put the land to its intended use are also capitalized.  The costs for the broker's commission, legal fees, title insurance, and razing of old building were incurred ordinarily and necessarily for the land and are therefore capitalized in determining the value of the land.

b) The capitalized interest portion for the building is the interests paid to date.  The contractor's fee, payments for plans, architect's fee, and interests are included as costs of the building.

4 0
3 years ago
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