Answer:
Check the answers below
Explanation:
- The per instrument cost of the bank is $0.25. Assuming uniform cheque value, the 24 million remittances across 10000 cheque will mean per cheque value of 2400. If this amount can be invested at 8% p.a., then daily investment income will be approx = 2400 * 8% /365 = $ 0.526
- Now for the company to jus about cover the cost of the cheque processing, the time should reduce by (assuming fractional time in days is possible) 0.25/0.526 = 0.48 days
- Now if the interest that can be earned reduces to 4%, the average daily interest will also reduce to $0.263. At this level, the time required to cover the cost should reduce by 0.95 days
The difference is simply because the opportunity cost in terms of alternate usage of funds has decreased for the company.
Answer:
C
Explanation:
Affective component has been displayed as mood and feelings have been touched as a result of the feedback Janice got from her boss.
Cheers
Answer:
5.54 %
Explanation:
Most Bonds are expressed per $100. I will use this as the Face Value.
We can then calculate the Yield to Maturity (YTM) of the Bonds as follows :
<em>PV = ($100 x 96 %) = - $96</em>
<em>PMT = ($100 x 5.1 %) ÷ 2 = $2.55</em>
<em>N = (15 - 2) x 2 = 26</em>
<em>FV = $100</em>
<em>P/YR = 2</em>
<em>YTM = ??</em>
Using a Financial Calculator to input the values as above, we get a YTM of 5.54 %
Answer:
$6,020
Explanation:
Calculation for the incremental cash inflow
Using this formula
Incremental cash flow=(Average price per units-Variable cost per unit)*Additional units
Let plug in the formula
Incremental cash flow = ($98 - $55)*140 units
Incremental cash flow=$43*140 units
Incremental cash flow= $6,020
Therefore the incremental cash inflow will be $6,020
