The answer for the given statement above would be TRUE. What makes this true is that traffic patterns should be taken into consideration because this is the space in the room that people can walk through. Therefore, such furniture placements should be observed very well.
Answer: $1,193,838.80
Explanation:
The price of a bond is the sum of the present value of the coupon payments and the face value at maturity.
= Present value of coupon payments + Present value of face value at maturity
First adjust the variables for semi-annual:
Number of periods = 5 * 2 = 10 semi annual periods
Coupon payment = 8% * 1,100,000 * 1/2 years = $44,000
Yield = 6% / 2 = 3%
Present value of coupon payments:
The coupon payments are constant so are an annuity:
= Annuity * Present value of an annuity factor, 10 periods, 3%
= 44,000 * 8.5302
= $375,328.80
Present value of face value
= 1,100,000 * Present value of 1, 3%, 10 periods
= 1,100,000 * 0.7441
= $818,510
Selling price:
= 375,328.80 + 818,510
= $1,193,838.80
Answer:
a-1)
- Project A = 0.70
- Project B = 0.64
- Project C = 0.81
- Project D = 1.29
a-2) Mountain Ski Corp. should choose projects D and C
b) Lakeway Train Co. should choose project B
Explanation:
It’s needed to calculate the coefficient of variation for each project
Formula: CV=σ/μ
Where:
σ = standard deviation
μ = mean
The coefficient of variation (CV) is a ratio that compares the standard deviation with the mean of a project`s return, indicating the volatility and risk of it. The lower its value the better risk-return trade-off. So, a company set up to take large risks such as Mountain Ski Corp. would choose projects with high CV (Projects D and C), and a risk-averse company such as Lakeway Train Co. would choose projects with low CV (Project B).
Answer:
C. Proceeds from the disposal of a long-term asset with no gain or loss.
Explanation:
Operating activities: it involves those transactions that after net income written impact the working capital. It would subtract the rise in current assets and a reduction in current liabilities, while adding the decline in current assets and an increase in current liabilities.
It would adjust the changes in working capital. In addition, the depreciation expense adds to the net revenue. And the loss on asset sales is added, while the gain on asset sales is deducted
