Answer:
A. Is in violation of the bankruptcy code.
Answer:
false
Explanation:
Capital budgeting is the process taken to evaluate and determine the profitability of an investment. capital budgeting can be done for projects that have cash flows of more than one year
capital budgeting methods include :
Net present value
internal rate of return
accounting rate of return
payback period
Answer:
B) $ 70,000.
Explanation:
Debt service expense
Debt service expense is the interest expense incurred to avail the debt services from another entity.
Debt service expense can be calculated using the following formula
Debt service expense = Face value of Bonds x Interest rate x Semiannual fraction
Where
Face value of bonds = $3,500,000
Interest rate = 4%
Semiannual fraction = 6 / 12 = 1/ 2
placing values in the formula
Debt service expense = $3,500,000 x 4% x 1/2
Debt service expense = $70,000
21 tasks, if you use your lunch break and your 2 15 minute breaks
Answer: $828
Explanation:
Given the following :
Semi-annual payment = $40
Period = 20 years
Number of payments = (20 * 2)(semiannual) = 40 payments
Par value = $1000
Interest rate = 5%
Using the PV table:
PV at $1 (40, 5%) = 0.1420
PVA at $1 (40, 5%) = 17.159
[Par value * PV at $1 (40, 5%)] + [$40 * PVA at $1 (40, 5%)]
= ($1000 * 0.1420) + ($40 * 17.159)
= $142 + $686.36
=$828.36
= $826