In the initial year, since I plan to put down $1000 and borrow $4000, then the inflow from the bank will be +$4000.
The timeline from my perspective will be:
Year 0
Cash flow +$4000
Year 1
Cash flow -$1000
Year 2
Cash flow -$1000
Year 3
Cash flow -$1000
Year 4
Cash flow -$1000
The timeline from the bank's perspective will be:
Year 0
Cash flow -$4000
Year 1
Cash flow +$1000
Year 2
Cash flow +$1000
Year 3
Cash flow +$1000
Year 4
Cash flow +$1000
I'm conclusion, it should be noted that the net cash flow for the bank in year 0 will be $-4000. This is the amount that was lent out by the bank.
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Answer:
Focus groups.
Explanation:
A focus group seems to be a marketing evaluation device where a small number of persons explore such subjects with the concern inside an open atmosphere. It seems to be a method of such analysis widely used during branding & marketing analysis, but also in sociology.
The following is thus the explanation of why the answer defines the situation as correct.
Answer:
C. Functional Changes
Explanation:
The goal of functional modifications is to ensure that the product becomes useful to more consumers which in turns broadens the market base for teh product. A strategy that is often employed is to analyze competitor's products and then identify features or modifications that are not available with the competiton's products. These features are then added to the existing product to gain a favourable position with the consumers.
Functional modifications assists the positive image building of a brand.
Functional Modifications include, a product's improved convenience (ease of use and access), effectiveness (ability to perform its stated functions), safety and versatility (ability to adapt or be used in different situations and activities).
Answer: BATCH PRODUCTION
Explanation: Batch production is a production process which involves controlled or regulated productions in small or regulated quantities. Batch production is used to describe a production process that is not continuous,it occurs in specific times and batch.
The production of hundred bolts and hundred nuts in standard sizes in two hours by Alvend is a BATCH PRODUCTION PROCESS.
Answer:
7.52%
Explanation:
First and foremost ,the yield to maturity on the old issue is computed using the rate formula in excel as calculated below:
=rate(nper,pmt,-pv,fv)
the nper is the number of times the bond would pay annual coupon interest of $106,which is 20 times
pmt is the amount of annual coupon payment which is $106
pv is the current price of the bond at $860
fv is the face value of the bond at $1000
=rate(20,106,-860,1000)=12.54%
The yield to maturity on the new issue is 12.54% as well
after-tax cost of debt=pretax cost of debt*(1-t)
pretax cost of debt is yield to maturity of 12.54%
t is the tax rate of 40% or 0.4
after-tax cost of debt=12.54%
*(1-0.4)=7.52%