Which type of lending institutions are being described here?

An associate is seeking advice on which device to purchase for a friend who is a business owner. The friend needs the ability to

Anton [14]

Answer: The following would be the best recommendation: Smart watch

Under this case the associate is purchasing the gift for his friend and from the given option it can be easily stated that smart watch will the best gift.

Smart watch will help his friend and give him the ability to chat activity while keeping in contact with the home office.

Therefore, the correct option is (a).

8 0

2 years ago

A store has 5 years remaining on its lease in a mall. Rent is $1, 900 per month, 60 payments remain, and the next payment is due

photoshop1234 [79]

Answer:

a) No, since the present value of new lease is more than old.

b) Detailed information about the explanation is shown below

c) At 39.80% nominal WACC

Explanation:

a

PV of old and new lease terms

Old Cash Flow New Cash Flow

0 0 0 0

1-9 - 1900 1-9 0

10-60 - 1900 10-60 2700

NPER 60 NPER 60

rate 1% rate 1%

PV ($85,414.57) PV ($98,250.36)

PV ( 1%, 60, 1900) PV ( 1%,9,- PV(1%,51, 2700))

Should the new lease be accepted? No, since the present value of new lease is more than old.

b) If the store owner decided to bargain with the mall's owner over the new lease payment, what new lease payment would make the store owner indifferent between the new and the old leases?

For this part pv of old lease should be equal to pv of new lease at t = 9

85414.57 × (1.01)⁹ 93416.657

Nper 51

Rate 1%

New lease amount ( $2,347.26)

PMT (1%, 51,93416.66)

c)

Period Old Lease New Lease Change in lease

0 0 0 0

1-9 -1900 0 -1900

10-60 -1900 -2700 800

-1900

800

3.317% x 12 = 39.80%

IRR(Values 1:60)

The store owner is not sure of the 12% WACC - it could be higher or lower. At what nominal WACC would the store owner be indifferent between the two leases?

At 39.80% nominal WACC

4 0

2 years ago

Suppose that a risk-free investment will make three future payments of $100 in one year, $100 in two years, and $100 in three ye

olya-2409 [2.1K]

Answer:

The answer is $ 257.70

Explanation:

PV= Σ of discounted payments

PV = 100(1.08^-1) + 100(1.08^-2) + 100(1.08^-2)= $ 257.70

7 0

3 years ago

A firm pays Pam $40 per hour to assemble personal computers. Each day, Pam can assemble 4 computers if she works 1 hour, 7 compu

kherson [118]

Answer:

$1,840

Explanation:

In order to calculate the Marginal cost of producing the computers in 2nd hour of work, we need to add the marginal cost of computer and marginal cost of wage in the 2nd hour of work.

MC = MC(computers) + MC(wage)

MC = $1,800(w) + $40

MC = $1,840

Working

MC (computers ) = 3 x 600$ = $1,800

hour computers assembled

1st 4

2nd 7

If pam works 2 hours she can assemble 7 computers but she already assembled 4 computers in 1st hour.

So the 2nd-hour computers will be 3 ( 7 - 4) computers.

4 0

2 years ago

Typically, salary of a job grows when: *

Oliga [24]

Answer:

D

Explanation:

motivation, desire, and attitude are the most important aspects when it comes to your job. Having your boss like you is great and all, but it won't get you a raise.

6 0

3 years ago