1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
jasenka [17]
4 years ago
13

Biochemical Corp. requires $720,000 in financing over the next three years. The firm can borrow the funds for three years at 10.

20 percent interest per year. The CEO decides to do a forecast and predicts that if she utilizes short-term financing instead, she will pay 8.50 percent interest in the first year, 12.90 percent interest in the second year, and 9.75 percent interest in the third year. Assume interest is paid in full at the end of each year. a. Determine the total interest cost under each plan.
Business
1 answer:
strojnjashka [21]4 years ago
6 0

Answer:

Determine the total interest cost under each plan.

Plan 1  220320

Plan 2 224280

Explanation:

FIRST    

F = P ( 1 + i * n )    

   

F=720000(1+10,20%*3)  940320  

   

F=940320    

   

Interest=940320-720000  220320  

   

Interest 1= 220320    

   

SECOND    

F = P ( 1 + i * n )    

                                                  Interest 2

F=720000(1+8,5%*1)  781200 720000 61200

F=720000(1+12,9%*1)  812880 720000 92880

F=720000(1+9,75%*1)  790200 720000 70200

                                                    224280

You might be interested in
Martin Inc. began construction on a building in 2020 and paying a construction company $600,000 in 2020. Martin also had avoidab
Mandarinka [93]

Answer:

$1,000,00

Explanation:

Amount paid to Construction company = $600,000

Additional expenditures in 2021 are Feb 28 = 90,000, Apr. 30 180,000, Jul. 1 = 36,000, Sept. 30 = 64,000. Avoidable interest Cost = 30,000

So, amount to be capitalized in Martin's Building account = $600,000 + $90,000 + $180,000 + $36,000 + $64,000 + $30,000 = $1,000,000

7 0
3 years ago
Ben Gordon, Inc. manufactures 2 products, wheels and seats. The company has estimated its overhead in the assembling department
FromTheMoon [43]

Answer:

$90,000

Explanation:

We could allocate assembly overhead on the basis of the parts used in the assembly process:

wheels ⇒ 300,000 x 2 parts = 600,000 parts

<u>seats ⇒ 600,000 x 3 parts = 1,800,000 parts</u>

total parts assembled     2,400,000 parts

overhead costs per part assembled = $360,000 / 2,400,000 parts = $0.15 per part

so the overhead allocated to wheels should be = 600,000 parts x $0.15 per part = $90,000

7 0
3 years ago
Are yall doing anything for summer vacation?
musickatia [10]

Answer: Nah just hanging out at home

Doing literally nothing.....sigh.......bored

4 0
3 years ago
Am i sus???????????????????????? ajajjjjajajaajajJaJJJJj​
VLD [36.1K]

Explanation:

I guess? I cant tell ....

6 0
3 years ago
Read 2 more answers
I have an interview on Thursday how do i answer the question “ Tell me about yourself” and “ Why do you want to work here”
omeli [17]
I see this job as a opportunity to contribute to an forward thinking industry. I feel that that my skills would be something great to share with the team .
4 0
3 years ago
Other questions:
  • A corporate treasury working out of Vienna with operations in New York simultaneously calls Citibank in New York City and Barcla
    7·2 answers
  • 2. In a recent large PowerBall lottery, the prize was reported to be worth $590 million, which could be taken in 25 equal annual
    11·1 answer
  • At the completion of the project, the working capital will be released for use elsewhere. Compute the net present value of the p
    13·1 answer
  • Donna Forrester's gross pay is $72,500 a year. The state income tax is 3% of taxable wages. Donna takes a married exemption of $
    10·2 answers
  • Types of current assets
    13·1 answer
  • Culver Corporation has retained earnings of $718,500 at January 1, 2017. Net income during 2017 was $1,596,000, and cash dividen
    15·1 answer
  • A static planning budget
    12·1 answer
  • Mike, an advocate of a certain religion, publishes an article in New Times magazine insisting that Congress base all federal law
    11·1 answer
  • Coffman Electronics produces small, portable printers. The market for the product has stabilized, and Coffman has shifted produc
    7·1 answer
  • Supervisor: "I need you to work on your team retention."
    9·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!