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SVEN [57.7K]
3 years ago
10

Your firm is considering the purchase of a new office phone system. You can either pay $ 32 comma 500 ​now, or $ 900 per month f

or 31 months. a. Suppose your firm currently borrows at a rate of 7 % per year​ (APR with monthly​ compounding). Which payment plan is more​ attractive? b. Suppose your firm currently borrows at a rate of 19 % per year​ (APR with monthly​ compounding). Which payment plan would be more attractive in this​ case?
Business
1 answer:
Alex Ar [27]3 years ago
4 0

Answer:

Always the second option will be better because 31 payments x $900 = $27,900, no matter what interest rate you use, it cannot be negative.

Explanation:

A) two options:

$32,500 now or $900 in 31 months

to determine by how much the installment plan is is better, we need to determine the present value of the annuity:

present value = payment x {[1 - 1/(1 + r)ⁿ] / r}

  • r = 7% / 12 = 0.58333%
  • payment = $900
  • n = 31

present value = $900 x {[1 - 1/(1 + 0.0058333)³¹] / 0.0058333} = $25,455

with this plan you save = $32,500 - $25,455 = $7,045

B) if the interest rate is higher, you save even more money:

present value = payment x {[1 - 1/(1 + r)ⁿ] / r}

  • r = 19% / 12 = 1.58333%
  • payment = $900
  • n = 31

present value = $900 x {[1 - 1/(1 + 0.0158333)³¹] / 0.0158333} = $21,914

with this plan you save = $32,500 - $21,914 = $10,586

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Anna35 [415]

Answer:

Explanation:

B, Reexamine his budget; he had a $500 deficit this month. plato.

3 0
3 years ago
Use the drop-down menu to complete each statement.
podryga [215]

According to this graph, at $10 the quantity supplied is about 14.

As the price of the good rises, the quantity supplied will be increasing.

In the graph, as the price of the good is rising the quantity supplied is also rising, When the price is $10.00 then the quantity supplied is 14 when the price is $15.00 then the quantity supplied is 24 and when the price is $17.50 the quantity supplied is 30.

The volume of a resource, service, or item that people are prepared and able to sell during a certain time period at a given price. If a good's price increases, more of that good is supplied, all other things being equal. When a product's price declines, less of that product is produced.

Two fundamental economic theories are combined in the law of supply and demand to explain how changes in the price of a resource, good, or service impact its supply and demand. Supply grows as the price rises, but demand drops. In contrast, as the price falls, supply is constrained and demand is increased.

The law of supply is a microeconomic principle that asserts, with all other things being equal, that if the cost of an item or service rises, suppliers will offer more of those goods or services and vice versa.

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brainly.com/question/17805586

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5 0
1 year ago
Kuzio Corporation produces and sells a single product. Data concerning that product appear below: Per Unit Percent of Sales Sell
rusak2 [61]

Answer:

<em>Net operating income  $8,950</em>

Explanation:

<em>The overall impact on the net operating income is the amount of increase in contribution from the addtional sales less the increase in monthly advertising budget. </em>

<em>                                                          $</em>

Contribution = ($75 × 190) =     14,250

Fixed cost - advertising       <u>    ( 5,300)   </u>    

Net operating income          <u>     8950</u>

Please, note that the fixed costs of $194,000 per month are not relevant for this decision. Simply because they would be incurred either way and that are not completely traceable to the increase sales.

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3 years ago
Riva crafts and sells hard cider as a part-time job. She can bottle and sell four cases in a week. She is considering hiring her
suter [353]

Answer:

7 cases

Explanation:

Based on the information provided in regards to the situation at hand it can be said that the maximum total output possible if Riva hires Atul would be 7 cases. This is because Riva can already package 4 cases per week by herself, and Atul can package 3 cases by herself per week, therefore working together they would be able to package a total of (3+4) 7 cases per week.

If you have any more questions feel free to ask away at Brainly.

4 0
3 years ago
The determinants of the supply of a good are any factors other than the product's ______ that cause the supply curve of the good
Vlada [557]

The determinants of the supply of a good are any factors other than the product's price that cause the supply curve of the good to shift.

<h3>What is supply curve?</h3>

The supply curve can be regarded as  graphic representation which is used in showing the relationship that exist between between the cost of a good or service and  quantity supplied.

However ,  the price is seen at the left vertical axis, of the curve and product's price that cause the supply curve of the good to shift.

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5 0
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