It depends but variable costs are usually associated with unit production like ingredients or materials so fixed costs like capital expenditure might be the larger part of a budget
Answer:
$124,966.9
Explanation:
The computation of the market or resale value is shown below:
$100,000 = $10,000 ÷ (1.15^1) + $10,000 ÷ (1.15^2) + $10,000 ÷ (1.15^3) + $10,000 ÷ (1.15^4) + Resale value ÷ (1.15^4)
$100,000 = $8695.65 + $7561.44 + $6575.16 + $5717.53 + Resale value ÷ 1.749006
Resale value ÷1.749006 = $71,450.22
So, the resale value is = $124,966.9
We simply applied the present value formula
Answer: $32000
Explanation:
The required reserves will be calculated as:
= Checkable deposit × Legal reserve ratio
= $80000 × 20%
= $16000
Excess reserves = $16000
Actual reserves will now be:
= Required reserves + Excess reserves
= $16,000 + $16,000
= $32,000
Answer:
$4,021.77
Explanation:
To solve this question find the present value of each cashflow then sum them up.
<u>PV of 2,000 received at year 2;</u>
Using a financial calculator, input the following;
FV = 2,000
I = 6%
N = 2
PMT = 0
then compute present value; CPT PV = $1,779.99
<u>Next, PV of 3,000 received at year 5;</u>
Using a financial calculator, input the following;
FV = 3,000
I = 6%
N = 5
PMT = 0
then compute present value; CPT PV = $2,241.78
Then sum up the two PVs = $1,779.99 +$2,241.78 = $4,021.77