19.27+88.22+321.77=429.26
4.5+2=6.5
429.26 x 1.065 = 457.1619
Answer = $457.16
Answer:
Effect on income= -$18,000
Explanation:
Giving the following information:
Granfield Company has a piece of manufacturing equipment with a book value of $36,000 and a remaining useful life of four years. At the end of the four years, the equipment will have a zero salvage value. The market value of the equipment is currently $21,200. Granfield can purchase a new machine for $112,000 and receive $21,200 in return for trading in its old machine. The new machine will reduce variable manufacturing costs by $18,200 per year over the four-year life of the new machine.
Year 0= -112,000 + 21,200= -90,800
Year 1 to 4= 18,200*4= 72,800
Effect on income= -90,800 + 72,800= -18,000
Answer:
They should not be able to successfully negotiate the terms of this loan within these parameters.
Explanation:
It has been provided that RT earns 12% on his current investments and would not like to receive an interest rate of less than 12% on the loan he gives.
if RT gives a loan of $10,000 for one year, he would charge an interest rate of minimum 12%.
Interest = $10,000*0.12
= $1,200
RT requires $1,200 in interest.
It has been provided that Cynthia earns 8% on her investment.
If she borrows $10,000 and invests the amount for one year, she can earn 8% return on such amount.
Earning = $10,000*0.08
= $800
Cynthia is going to earn $800
RT requires a minimum of $1,200 as interest for 1-year loan he gives while Cynthia can pay a maximum of $10,000 as interest for 1-year loan she takes. there is mismatch between the minimum expectation to receive of lender and the maximum expectation to pay of borrower.
Therefore, They should not be able to successfully negotiate the terms of this loan within these parameters.
Answer:
17%
Explanation:
If a company issued a short-term note payable to a bank with a stated 12 percent rate of interest and in addition the bank charged a .5% loan origination fee and remitted the balance to the company. The effective interest rate paid by the company in this transaction would be 17%
The effective annual interest rate is <u>the interest rate that is actually earned or paid on an investment, loan</u> or other financial product.
Hence, since the company is both paying the initial 5% and the later 12%, effectively the company is paying 17% on the note payable.
This is a profit, which increases next year's budget.
