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Kaylis [27]
4 years ago
10

If the nominal annual interest rate is 12% compounded quarterly, what is the effective annual interest rate?

Business
1 answer:
irina1246 [14]4 years ago
5 0

Answer:

the effective annual interest rate is 12.55 %

Explanation:

The computation of the effective annual interest rate is shown below:

Effective annual interest rate is calculated by using the following formula

= {(1 + interest  ÷ number of compounding period)^number of compounding period} - 1

= (1 + .12 ÷ 4)^4-1

= (1.03)^4 - 1

r = 1.1255 - 1

r=.1255

hence, the effective annual interest rate is 12.55 %

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Chapman Machine Shop is considering a 4-year project to improve its production efficiency. Buying a new machine press for $576,0
DIA [1.3K]

Answer:

The Firm should not Buy and Install the press as it delivers a negative NPV of -$24,924 at 11% discount rate over its 4 year operations

Explanation:

The General rule is to appraise the investment based on various appraisal techniques.

A technique that should be considered must have special focus on the time value of money, the required rate of returns expected by the firm and other Cashflow considerations.

The Net Present Value (NPV) approach will be the best method to proceed with.

The NPV approach typically falls under the following decision tree:

a. If NPV is negative (Reject the proposal)

b. If NPV is positive (Accept if it's a singular project, Accept the highest positive NPV if it's for mutually exclusive Projects)

c. If Zero (this is the breakeven line at which the Project covers all its cost but does not return a profit.) Also referred to as the IRR

Kindly refer to the attached for detailed workings

6 0
3 years ago
Mr. Curtis paid the following taxes: Federal income tax $ 72,250 Federal gift tax 361 Federal employer payroll tax for housekeep
tia_tia [17]

Answer:

Mr Curtis can deduct his total property taxes of $ 7,810.00  as well as the Indiana state income tax of $8,120.00 ,since this exceeds the Indiana state sales tax on consumer goods and services of $2,890.00 paid by Mr Curtis during the year.

Finally,the remaining are not deductible

Explanation:

In other words the following taxes are not deductible:

1.Federal income tax $72,250.00

2.Federal gift tax $361

3.The Federal payroll tax for housekeeper $1,301

4.Indiana sales tax on consumer goods and services$2,890

Lastly the property taxes deductible is computed thus:

Principal residence $3,980.00

Vacation home       $2,530.00

Two automobiles    $1,300.00

Total                         $ 7,810.00  

8 0
3 years ago
Lois and Peggy are the only two accountants at a construction company. They split the accounting work in the company according t
Lapatulllka [165]

Answer:

Job sharing

Explanation:

Job sharing is a sort of adaptable work course of action in which two individuals work to finish the work one individual would do in a self-contained all day job. In job-sharing agreement, two people handle work, and they share salaries. Hours can change: They may cooperate some portion of the week, and they may never observe one another.

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3 years ago
During the past recession, cali-bration company created a __________ organization, when it restructured and eliminated several m
Svetllana [295]
<span>During the past recession, cali-bration company created a <u>flat</u> organization. A flat organization has several managers, and many employees who have to report to each of those appointed managers. This is a good type of organization because everybody takes part in the decision-making process, and thus customer wishes and demands are always taken into consideration. </span>
3 0
4 years ago
Which dimensions should a marketer consider when dealing with the human aspect of distribution channels?
Sindrei [870]

Dimensions that a marketer should consider when dealing with human aspect of distribution channels are communication, conflict, roles, and power. Conflict arises when one marketing channel participant believes that the acts of another participant have prevented him or her from achieving his or her objectives. Power is the ability of one channel member to command or shape the actions of another channel member (s). A role is a set of guidelines that specify how a positioning member should behave. Members of the channel engage in communication activities that produce an information flow within the channel, which is required for an effective movement of goods or services throughout the channel.

The people, businesses, and initiatives that make products and services accessible to consumers are referred to as marketing channels. From the moment of production to the point of consumption, ownership of the commodities is transferred. Trade exhibitions, business gatherings, and targeted email is the example of marketing channels.

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5 0
2 years ago
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