Which process in service operation contributes to continual service improvement?

Sage Company borrowed $3,000,000 on March 1 on a 5-year, 12% note to help finance construction of the building. In addition, the

valina [46]

Question:

Riverbed Company is constructing a building. Construction began on February 1 and was completed on December 31. Expenditures were $5,400,000 on March 1, $3,600,000 on June 1, and $9,000,000 on December 31. Riverbed Company borrowed $3,000,000 on March 1 on a 5-year, 12% note to help finance construction of the building. In addition, the company had outstanding all year a 10%, 5-year, $6,000,000 note payable and an 11%, 4-year, $10,500,000 note payable. Compute avoidable interest for Riverbed Company. Use the weighted-average interest rate for interest capitalization purposes.

Answer:

The total avoidable interest is $743,040.00

Explanation:

Here we have

Date Expenditure Period Portion

Mar-01 $5,400,000.00 10/12 $4,500,000.00

Jun-01 $3,600,000 7/12 $2,100,000

Dec-31 $9,000,000 0/12 $0

Total $6,600,000.00

The weighted average expenditure is $6,600,000.00

The weighted average rate using the notes payable loan is found by the following calculation

Type of loan Amount Interest rate Interest incurred

Loan $6,000,000 10% $600,000.0

Loan $10,500,000 11% $1,155,000.00

Total $16,500,000 $1,755,000.0

Weighted average rate = Total interest incurred / Total loans

Weighted average = 1755000/16500000 = 0.10636 = 10.64%

The general interest is found by subtracting the specific loan from the weighted average expenditure

General = Weighted average expenditure - Specific loan

General = $6,600,000.00 - $3,000,000 = $3,600,000.00

The avoidable interest is found by summing the specific interest to the weighted average interest as follows

Type of loan Amount Interest rate Interest incurred

Specific $3,000,000 12% $360,000.00

General $3,600,000 10.64% $383,040.0000

Total $743,040.00

The total avoidable interest = $743,040.00

5 0

3 years ago

A first-round draft choice quarterback has been signed to a three-year, $10 million contract. The details provide for an immedia

inessss [21]

Answer:

$8.31 million and No.

Explanation:

In this question, we have to find out the present value which is shown below:

= $1 + first year value ÷ ( 1 + discount rate) + second year value ÷ ( 1 + discount rate) ^ number of years + third year value ÷ ( 1 + discount rate) ^ number of years

= $1 + $2 million ÷ (1 + 10%) + ($3 million ÷ 1.10)^2 + ($4 million ÷ 1.10)^3

= $1 million + $1.82 million + $2.48 million + $3.01 million

= $8.31 million

No the package would not worth $10 million as its present value is $8.31 million

7 0

3 years ago

Suppose you wanted to closely examine the leaf of a plant. which type of lens would you use? explain

tekilochka [14]

<span>To examine the leaf of a plant, one should use a magnifying glass which holds a convex lens. A convex lens allows parallel light rays to pass through then refracts the rays so they meet on one principal point. This type of lens is useful in seeing something small.</span>

3 0

3 years ago

When Glenn is thirsty, he always buys a Coke. Like many consumers, Glenn engages in considerable alternative evaluation when buy

Alecsey [184]

Answer:

False

Explanation:

Buying coke by Glenn is an habit because he does not have to think before doing it. He does not even try to consider alternatives which could be as a result of his total satisfaction from coke. Habitual decisions need little to no conscious effort (reasoning) to make.

Cheers.

3 0

3 years ago

A buyer submits an offer to purchase to the listing agent. He finds out that more than several offers are coming in for the same

zmey [24]

A buyer submits an offer to purchase to the listing agent. He finds out that more than several offers are coming in for the same property. He can expect that all offers will probably be presented at the same time, and the seller will select among them.

Explanation:

In certain situations buyers have to consider multiple rival purchase deals. Sellers will deal with different deals in several ways.

Sellers should consider the "highest" bid; warn all potential buyers that other deals are "at the table;" they can "compare" one offer by put the another offer on the side pending a counter-offer vote, or they can "fight" one offer and refuse the other.

The various bargaining tactics that you can use in multiple deals agreements are advantages and disadvantages. The low initial bid may lead to the purchase of the property you want for less than the quoted price, or may lead to the acceptance of a higher offer from another bidder.

3 0

3 years ago