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miskamm [114]
3 years ago
10

Short Company purchased land by paying $10,000 cash on the purchase date and agreeing to pay $10,000 for each of the next ten ye

ars beginning one-year from the purchase date. Short's incremental borrowing rate is 10%. The land reported on the balance sheet is closest to:
(A) $100,000
(B) $38,550
(C) $61,446
(D) $71,446
Business
1 answer:
romanna [79]3 years ago
6 0

Answer:

(D) $71,446

Explanation:

we will calcualte the present value for an 11 payments  annuity-due (there is eleven payment of 10,000 if we count the one at purchase date) which couta is 10,000 discounted at 10%

C \times \frac{1-(1+r)^{-time} }{rate} (1 +r ) = PV\\

C 10,000

time 11

rate 0.1

10000 \times \frac{1-(1+0.1)^{-11} }{0.1} (1 + 0.10) = PV\\

PV $71,445.6711

rounding to the nearest dollars: 71,446

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Which of the following is true about how the "invisible hand" influences economic activity through prices when a product has low
Virty [35]

Answer:

The correct answer is c.

Explanation:

Since the point the text is mentioning is above the equilibrium point, we know that the Demand is lower than it should be, while supply is bigger.

In order to increase the demand and lower the supply, we need to decrease the price to the equilibrium price. This will increase the demand and lower the supply making them intersect and reach the equilibrium point, a point that the invisible hand is influencing.

I hope this helps!

8 0
3 years ago
A real estate agent is considering changing her land line phone plan. There are three plans to choose from, all of which involve
Yakvenalex [24]

Answer:

PLAN A:

(120 * 0.39) + (40 * 0.19) + 20 = $74.40

PLAN B:

(120 * 0.49) + (40 * 0.14) + 20 = $84.40

PLAN C:

$20 + $75 = $95 ;

PLAN A is optimal from 0 to 192 minutes

PLAN C is optimal from 192 minutes onward ;

Explanation:

PLAN A :

Service charge = $20

Daytime = $0.39 per minute

Evening = $0.19 per minute

PLAN B :

Service charge = $20

Daytime = $0.49 per minute

Evening = $0.14 per minute

PLAN C :

Service charge = $20

225 minutes = $75

Minutes beyond 225 = $0.36 per minute

A.)

Determine the total charge under each plan for this case: 120 minutes of day calls and 40 minutes of evening calls in a month.

PLAN A:

(120 * 0.39) + (40 * 0.19) + 20 = $74.40

PLAN B:

(120 * 0.49) + (40 * 0.14) + 20 = $84.40

PLAN C:

$20 + $75 = $95

b. If the agent will use the service for daytime calls, over what range of call minutes will each plan be optimal?

PLAN A:

20 + 0.39D = 95

0.39D = 95 - 20

D = 75 / 0.39

D = 192.31

5 0
3 years ago
Gore Global is considering the two mutually exclusive projects below. The cash flows from the projects are summarized below.
d1i1m1o1n [39]

Answer:

D

Explanation:

Internal rate of return is the discount rate that equates the after tax cash flows from an investment to the amount invested

IRR can be calculated with a financial calculator  

Flying Car

Cash flow in year 0 = -$200,000

Cash flow in year 1 = 50,000

Cash flow in year 2 = 50,000

Cash flow in year 3 =80,000

Cash flow in year 4 =100,000

IRR = 13%

To find the IRR using a financial calculator:

1. Input the cash flow values by pressing the CF button. After inputting the value, press enter and the arrow facing a downward direction.

2. After inputting all the cash flows, press the IRR button and then press the compute button.  

7 0
3 years ago
Are there any benefits for the law being "Vague and Variable"?
Alisiya [41]
Their benefit is to all of society rather than to an individual 
8 0
3 years ago
The Department of Commerce in Washington D.C. is developing the macroeconomic report for the nations previous economic quarter.
sergij07 [2.7K]

Answer:

quantitative measurements of the nation's economic activity from last quarter

6 0
3 years ago
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