Answer:
Loss on Sale of Non-Current Asset is -$5,672.
Explanation:
The key points to remember here are:
- We compare Carrying Value (Cost - Accumulated Depreciation) with Selling Price to calculate gain/loss.
- Adelphi Company has used the machine for 4 years. So, deduct the depreciation of 4 years from the Cost of Machine.
- Double-Declining Rate is calculated as (1/10)*(2) = 20%. Multiply this rate with the Carrying value of each year to get the depreciation figure for next year.
I've attached a screenshot of my workings, I hope it will help you better understand the scenario. Thanks!
Answer:
The fund with the highest ratio is Fund B.
Explanation:
Risk-free return = 6%
The average return on the market portfolio = 19%
The ratio equation formula is as follows:
FUND A: Return on fund - Risk free rate - Beta (Return on market portfolio - Risk free rate)/Standard deviation of fund
FUND A : 20 - 6 - 0.8(19 - 6 ) / 4 = 0.9
FUND B : 21 - 6 - 1(13)/1.25 = 1.6
FUND C : 23 -6 - 1.2 (13 ) /1.2 = 1.167
Therefore, the fund with the highest ratio is Fund B.
Answer:
7.76%
Explanation:
In this question, we use the PMT formula which is shown in the spreadsheet.
The NPER represents the time period.
Given that,
Present value = $969
Future value = $1,000
Rate of interest = 8.1%
NPER = 17 years
The formula is shown below:
= PMT(Rate;NPER;-PV;FV;type)
The present value come in negative
So, after solving this, The PMT would be $77.58
The coupon rate is shown below:
= (Coupon payment ÷ par value) × 100
= ($77.58 ÷ $1,000) × 100
= 7.76%
The given statement is FALSE.
Explanation:
This is an example of adverse selection.
Adverse selection applies to a case in which the purchasers and distributors of the insurance policy don't have the same details at their fingertips. A typical definition of health insurance is where a person wants to learn if he is ill and in need of health coverage before paying for a health insurance package.
Examples of adverse selection in life insurance involve cases when a person with a high-risk career, such as a racing car driver or someone dealing with weapons, obtains a life insurance policy without the need for an insurance provider realizing that they have a risky position.
