Answer:
$28,100
Explanation:
The computation of the bond interest expense is shown below:
= (Issued amount × interest rate) + (Issued amount - given amount) ÷ time period
= ($450,000 × 6%) + ($450,000 - $439,000) ÷ 10 years
= $27,000 + $1,100
= $28,100
In semi annual period, the interest rate is half and the time period is doubles and the same is shown
Answer:
-$414,444.44
Explanation:
The computation of the net present value is shown below:
Net present value = Initial investment + net cash flows ÷ (required rate of return - projected growth rate)
= -$1,570,000 + $104,000 ÷ (12% - 3%)
= -$1,570,000 + $1,155,555.56
= -$414,444.44
Hence, the net present value is -$414,444.44
Since the net present value comes in negative so the project is rejected
Answer:
The total number of scooters is 10
Explanation:
Total profit is maximized where Marginal Revenue (MR) = Total Marginal Cost
= 50 + 50 + 50 + 50 = $200
TR = P × Q = (300 - 5Q) × Q = 300Q - 5Q²
So, MR = 
= 300 - 2(5Q) = 300 - 10Q
Now, MR = 200 gives,
300 - 10Q = 200
So, 10Q = 300 - 200 = 100
So, Q = 
So, Q = 10
Answer:
Equals the foreign exchange rate minus the inflation rate.
Explanation:
Nominal rate of interest refers to the interest rate which does not account for rate of inflation.
It is expressed as
Nominal interest rate = Real interest rate + rate of inflation
Real interest rate is considered to be a better measure since it is adjusted for rate of inflation.
Foreign exchange rate refers to exchange rate between two currencies which is based upon inflation and interest rates prevailing in the respective countries.
