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alex41 [277]
3 years ago
9

You just won a prize that comes with two payout choices. The first option is to get $100,000 right now and nothing hereafter. Th

e second option is to get $94,000 right now and and $10,000 three years from now (and nothing after that). If your discount rate is 8 %, which should you take?After comparing the $100,000,000 for the first option and the 101,938.32 for the second option, you should choose:
A. First Option
B. either option, as they are equal
C.second option
Business
1 answer:
lorasvet [3.4K]3 years ago
8 0
The answer is a. If I’m not mistaken
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Use the information presented in Midwestern Mutual Bank's balance sheet to answer the following questions.
ratelena [41]

Answer:

Answer for task 1: Increase

Answer for task 2: debt

Answer for task 3: -13.33

Answer for task 4: -14.00

Answer for task 5: reserve requirement

Explanation:

<u>Task 1:</u>

In the given question, the owner has borrowed $100 supplement to their existing reserves. Since the owner has borrowed, the value of debt would <u>increase</u>.

<u>Task 2:</u>

<u>Leverage ratio before borrowing:</u>

Leverage ratio = \frac{Total assets}{Capital}

Leverage ratio = \frac{200 + 800+1000}{-150}

Leverage ratio = -13.33

The leverage ratio before borrowing is - 13.33

<u>Task 3:</u>

<u>Leverage ratio after borrowing:</u>

Leverage ratio = \frac{Total assets}{Capital}

Leverage ratio = \frac{2000 + 100}{-150}

Leverage ratio = -14.00

The leverage ratio after borrowing is - 14.00

<u>Task 4:</u>

This would also bring the leverage ratio from its initial value of -13.33 to a new value of -14.00.

<u>Task 5:</u>

<u>Which of the following do bankers take into account when determining how to allocate their assets? Check all that apply.</u>

The option is<u> "b"</u>

When determining how to allocate their assets bankers take into account the reserve requirement.

3 0
4 years ago
In determining whether to issue a loan, banks are not allowed to ask about an applicant's
Firlakuza [10]

Answer:

country of origin.

Explanation:

Banks have a set of requirements that borrowers need to meet to qualify for a bank loan. The banks will ask questions to determine if the customer is eligible for a loan. Most of the questions pertain to the purpose of the loans and the customer's ability to repay.

The bank will ask about employment history, credit history, tax information, personal information, the purpose of the loan,  collateral, and other questions related to the ability to repay. A person's country of origin is unnecessary and may elicit elements of discrimination.

3 0
3 years ago
Read 2 more answers
Maxim manufactures a hamster food product called Green Health. Maxim currently has 11,500 bags of Green Health on hand. The vari
gogolik [260]

Answer:

$126,600

Explanation:

Calculation to determine what the revenue from the two products would be:

Venue if processed further:

Premium Green (11,500 bags * $9 per bag) $ 103,500

Green Deluxe (3,300 bags * $7 per bag) $23,100

Total revenue if processed further $ 126,600

($103,500+$23,100)

Therefore Assuming Maxim further processes Green Health further into Premium Green and Green Deluxe, revenue from the two products would be:$126,600

4 0
3 years ago
Multiple Choice Question The changes in the non-cash balance sheet accounts explain the differences between the ______. Multiple
Blizzard [7]

Answer: income statement and the statement of cash flows

Explanation:

8 0
2 years ago
The Porter Beverage Factory owns a building for its operations. Porter uses only half of the building and is considering two opt
siniylev [52]

Answer:

Differential income = $8,100

Explanation:

<em>The differential income is the difference in income between the two alternative uses of the unused space. This would be done as follows:</em>

<em>Option 1</em>

<em>Income from the pop corn option:</em>

                                                                    $

Sales value                                           715,000

Less commission        (6%×715,000)   <u>(42,900)</u>

Net sales value                                      <u>672,100</u>

<u />

Option 2 :

<em>Lease income from Salty Snacks</em>

                                                                     $

Lease income                                          188,800

Taxes                                                         47,000

Insurance                                             <u>       9,000</u>

Annual Net lease income                    <u>     132,800</u>

Total lease income for 5 years    132800× 5= $664,000

Differential income 672,100-664,000 = 8,100

Differential income = $8,100

<u />

7 0
3 years ago
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