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ycow [4]
3 years ago
8

Canterbury Co. issues a discounted, non-interest-bearing note in exchange for borrowed funds. Choose whether the cash received w

ill be higher or lower than the face value of the note, and whether the effective annual interest rate will be higher or lower than the discount rate: Cash Received vs. Face Value of Note Effective Rate vs. Discount Rate a. Higher Lower b. Lower Higher c. Lower Lower d. Higher Higher
Business
1 answer:
tia_tia [17]3 years ago
4 0

Answer:

b. Lower Higher

Explanation:

As non interest bearing notes are issued on deep discounted value. The face value of the note is discounted to calculate the cash receipt from the issuance. So, the cash received will be higher than the face value of the note.

If the non interest bearing note is issued on a discounted value the effective interest rate will be higher than the discount rate of the bond because the investor demands the required rate of return which is used to discount and calculating effective rate using discounted value will result the higher rate.

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MC Qu. 112 A company is considering... A company is considering the purchase of new equipment for $105,000. The projected annual
Alina [70]

Answer:

Net Present Value =  $660.98  

Explanation:

<em>The Net present value (NPV) is the difference between the Present value (PV) of cash inflows and the PV of cash outflows. A positive NPV implies a good and profitable investment project and a negative figure implies the opposite. </em>

NPV of an investment:  

NPV = PV of Cash inflows - PV of cash outflow  

<em>PV of cash inflow = A× (1- (1+r)^(-n))/r </em>

A- annul cash inflow, r- 8%, n- 3

PV of cash inflow= 41,000× (1- 1.08^(-3))/0.08

=   105,660.98  

Initial cost = 105,000

NPV =  105,660.98  - 105,000

= $  660.98  

3 0
3 years ago
Imagine the tea market has a demand function of QDX = 10 – 2PX and a supply function of QSX = PX − 2, where PX is the price of t
scoundrel [369]

Answer:

Call me 7061528052 call me at the end of the most important thing is that the only way to get to see the place of business and the rest of the most important thing is that the total number of

Explanation:

Call me 7061528052 call me at the end of the most important thing is that the only way to get to see the place of business and the rest of the most important thing is that the only way to get to see the place

3 0
2 years ago
An airline company is interested in the opinions of their frequent flyer customers about their proposed new routes.​ Specificall
prohojiy [21]

Answer: Stratified Sampling

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Participants will now be selected from each group at random to participate in the survey.

4 0
2 years ago
​When Mia and Shane are planning their honeymoon, their travel agent tells them that if they buy a special package, their trip t
nignag [31]

Answer:

bundle pricing

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Bundle pricing

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In other words bundle pricing is mean to offer heavy discount in order to make huge profit by selling their products in large number.

8 0
3 years ago
A cost that cannot be avoided or changed because it arises from a past decision, and is irrelevant to future decisions, is calle
Stella [2.4K]

Answer: Sunk cost

Explanation:

A sunk cost is a cost that an individual, firm or the government has already incurred and therefore can't be recovered anymore.

For example, marketing campaign expenses, rent or the money that is spent on purchasing new equipment can all be referred to as sunk costs as they are past cost and can't be recovered again.

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