The amount Jackson would be willing to lend is $6,000.
<h3>How much would Jackson be willing to lend?</h3>
In order to determine the amount Jackson would be willing to lend, the present value of the amount Dereck would repay in 4 years. Present value is the sum of discounted cash flows.
Present value = $7,418.87 / (1.0545^4) = $6,000
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What options do we knave to choose from? If we do not have any options, then the answer most likely is: the demand in computers will increase.
The reason for this is because if the consumers have more money to buy computers, the odds of them purchasing them are greater, which will increase the demand for the computers.
Answer:
22.14 billion
Explanation:
First, we will calculate the WACC where,
- WACC = we x ke + wd x kd x (1 - tax)
-
And Weight of Equity = E/(D+E) = 1 / 1.85 = 54%
- The weight of debt = 1 - 54% = 46%
-
The cost of equity = 12.8%
- the cost of debt = 5.6%
- WACC = 54% * 12.8% + 46% x 5.6% = 9.49%
The WACC for the project will be 9.49 + 2 = 11.49% as the project is riskier.
As the after tax cash savings are expected to grow at a constant rate indefinitely, it is a perpetuity,
V of perpetuity = 1.88m / (11.49% - 3%) =$22.14
This (22.14) is the maximum that the company can invest as initial cost as at this initial investment, the present value of the project will be zero.
Answer:
The correct word for the blank space is: line of credit.
Explanation:
Line of credit refers to the maximum amount an individual or organization has available in a credit card or loan. It is determined by the credit history of the borrower implying the higher the income of the individual or organization, the higher the line of credit.
Withdrawing money from a line of credit implies paying an interest rate for a determined amount of time in addition to the principal of the loan. The term is usually determined by the borrower at the moment of purchasing.
Answer:
$89,900
Explanation:
The computation of the product cost is shown below:
= Manufacturing Equipment Depreciation + Indirect Materials Used + Indirect Labor + Factory Repair and Maintenance + Direct Materials Used + Direct Labor
= $1,800 + $8,800 + $15,000 + $800 + $27,500 + $36,000
= $89,900
It is a mix of direct labor cost, direct material cost and the manufacturing overhead cost
