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eimsori [14]
3 years ago
15

For which of the following transactions would the use of the present value of an annuity due concept be appropriate in calculati

ng the present value of the asset obtained or liability owed at the date of incurrence? A. A capital lease is entered into with the initial lease payment due upon the signing of the lease agreement.
B. A capital lease is entered into with the initial lease payment due one month subse-quent to the signing of the lease agreement.
C. A ten-year 8% bond is issued on January 2 with interest payable semiannually on July 1 and January 1 yielding 7%.
D. A ten-year 8% bond is issued on January 2 with interest payable semiannually on July 1 and January 1 yielding 9%.
Business
1 answer:
Drupady [299]3 years ago
3 0

Answer:

A capital lease is entered into with the initial lease payment due upon the <u><em>signing of the lease agreement.</em></u> The annuity begins with a payment

Explanation:

An annuity-due represnet an annuity were payment or deposits are perform at the beginning of the period.

B no. It doesn't start with a payment.

C no, there is no payment at issuance.

D same as C only the rates changes but this, do not change the essence of the annuity it is still a common annuity not annuity-due

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a. micromarketing

Explanation:

Micromarketing -

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3 years ago
Why might the unemployment rate underestimate the underutilization of labor​ resources? The unemployment rate might underestimat
DaniilM [7]

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marginally attached staff and​ part-time staff that hope on getting​ full-time jobs

6 0
3 years ago
Assume that inflation averages 3.50% over the next 20 years. If Carlos invests $25,000 in an exchange-traded fund within a tax-d
Artemon [7]

Answer: Yes, because the ETF is worth more than his original investment

Explanation:

From the information given in the question, the average inflation for next 20 years = 3.50%

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Then, the amount in 20 years after the adjustment of inflation will be:

= Amount invested (1+inflation rate)^n

= 25000(1+0.035)^20

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8 0
3 years ago
As a novice investor, Laura is concerned about fees. She has heard stories of investors who have lost thousands of dollars in fe
topjm [15]

Answer:

Laura should focus on purchasing Index Mutual Funds and Exchanged-Traded Funds.

Explanation:

Laura should, amongst many investments’ options, focus on two particular types of investments: the first one is called index mutual funds, which have a much lower fee than mutual funds, giving the investor an investment with lower cost while having a fund that works in many ways equal to mutual funds. The second one should be exchange-traded funds, particularly because those funds are based on commissions, making it possible to charge lower fees than mutual funds.

5 0
3 years ago
A wood products firm uses available time at the end of each week to make goods for stock. Currently, two products on the list of
leonid [27]

Answer:

Let board = X1 holder= X2

Max = 2X1+6X2

Subject to: 1.4X1+0.8X2≤56 …………… (1)

5X1+13X2≤ 650 ………………. (2)

12X1+3X2≤ 360 ………………. (3)

a) The solution at point A X1=0 X2=50

Z= 2(0) +6(50) = 300

b) Cutting: 56- 0.8(50) = 15 minutes. (40,0) (0,70) ………… (1)

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Finishing: 3X50=150 360-150=210 minutes. (30,0) (0,120) ………… (3)

Explanation

See figure in attached file

7 0
4 years ago
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