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Nady [450]
3 years ago
6

The reserve maintenance fund consists of: A monies to pay for extraordinary maintenance or replacement costs B monies to pay for

regularly scheduled major repairs and replacement costs C monies to meet debt service requirements D all gross revenues from the facility
Business
1 answer:
makkiz [27]3 years ago
6 0

Answer:

C. Monies to meet debt service requirement.

Explanation:

The fund  that is reserved to pay for the principal and interest payments on various debts is known as debt service fund.  It is kept to reduce risk of debt security for the investors. The risk reduction of a debt security makes it attractive for the investors and also reduces the effective interest rate which is needed while selling the offering.<em> But a portion of the cash that a debt issuer receives from the debt offering is tied and it cannot be utilised for more useful investments.</em>

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Major Corp. is considering the purchase of a new piece of equipment. The cost savings from the equipment would result in an annu
Annette [7]

Answer:

a. $ 82, 063

b. - $ 19,206

c.  11.24%

Explanation:

Net Present Value is calculated by taking the Present Day (Discounted) value of all future Net Cash flows based on the company`s Cost of Capital and subtracting the Initial Cost of the Investment.

<em>Using a Financial Calculation</em>

a.

Cash flow Amount

Cf0 = ($665,000)

Cf1  = $130,000

Cf2 = $130,000

Cf3 = $130,000

Cf4 = $130,000

Cf5 = $130,000

Cf6 = $130,000

Cf7 = $130,000

Cf8 = $130,000

i = 8%

NPV = $ 82, 063

b.

Cash flow Amount

Cf0 = ($665,000)

Cf1  = $130,000

Cf2 = $130,000

Cf3 = $130,000

Cf4 = $130,000

Cf5 = $130,000

Cf6 = $130,000

Cf7 = $130,000

Cf8 = $130,000

i = 12%

NPV = - $ 19,206

c.

Internal Rate of Return = P  + ((N-P)×p/(p+n))

                                      = 8% + ((12%-8%)×$ 82, 063/($ 82, 063+ $ 19,206))

                                      = 11.24%

3 0
3 years ago
Score skateboard company is a small firm that designs and manufactures skateboards for high school and collage students who want
ikadub [295]

Answer:

a.  $1553

b.  $1,303

c.  $5,618

Explanation:

SUTA is 5.4% for employees if the total salary is below $7,000

In the provided scenario the salary is less than that as $7,000/6 employees = $1,167 each employee. The maximum salary is $1,100 in the scenario.

a.

SUTA = $7,000 * 5.4%

SUTA = $378

Retirement Fund = $75

Gross Salary = $1,100

$378 + $75 + $1,100 = $1553

b.

SUTA = $7,000 * 5.4%

SUTA = $378

Retirement Fund = $75

Gross Salary = $850

$378 + $75 + $850 = $1,303

c.

SUTA = $7,000 * 5.4%

SUTA = $378 * 6 employees

SUTA = $2,268

Retirement Fund = $75 * 6 employees

Retirement Fund = $450

Gross Salary = $150 * 4 employees

Gross Salary = $600

Gross Salary = $1,150 * 2 employees

Gross Salary = $2,300

Total Gross Salary = $2,900

Total Gross Pay = $2,268 + $450 + $2,900

Total Gross Pay = $5,618

8 0
3 years ago
A publicly owned corporation is a company whose shares are held by the investing public, which may include other corporations as
Lubov Fominskaja [6]

Answer:

True

Explanation:

A publicly owned corporation is a company is a company owned by shareholders. This type of company's shares is freely traded on a stock exchange

Characteristics of A publicly owned corporation

  • Limited liability. the liability of owners are limited to the amount invested
  • Central management. The company is manged by board of directors and managers and not the shareholders
  • the company is a legal entity.
6 0
3 years ago
A manufacturer replenishes their packaging materials according to the economic order quantity model. They use 25,000 cases of pa
Sergio [31]

Answer:

$300,000 in total, $6000 per order

Explanation:

25,000/500 = 50

50*12=600

500*12=6000

50*6000=300000

7 0
3 years ago
Read 2 more answers
Franklin Corporation issues $50,000, 10%, 5-year bonds on January 1, for $52,100. Interest is paid semiannually on January 1 and
Karo-lina-s [1.5K]

Answer:

Bond interest expense = $2,290

so correct option is b. $2,290

Explanation:

given data

Bond issued = $50,000

Interest rate  = 10%

interest semi-annually = 5%

time period = 5 year

to find out

amount of bond interest expense

solution

we get first Cash interest payment that is here

Cash interest payment = $50,000 × 5%

Cash interest payment = $2,500     ....................1

and Bond premium will be

Bond premium = $52,100 – $50,000

Bond premium = $2,100      .......................2

we know interest paid semi annually so time period will be  = 10

so Amortization of bond premium will be here as

Amortization of bond premium = \frac{2100}{10}

Amortization of bond premium = $210      .................3

so  Bond interest expense will be calculate as

Bond interest expense = Cash interest payment - Amortization of bond premium     .......................4

put here value

Bond interest expense = $2,500 - $210

Bond interest expense = $2,290

so correct option is b. $2,290

8 0
3 years ago
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