Answer:
A) and goes further than necessary to ensure full coverage
Answer: A.) $1,095
Explanation:
Bond value = $30,000
Rate = 7%
Period = 10 years
Issue price = $29,100
Bond value × rate :
30,000 × 0.07 = $2100
Semi annually:
$2100 / 2 = $1050
(Bond value - issue price) ÷ (period × 2)
($30,000 - $29,100) / (10 × 2)
$900 ÷ 20 = $45
$1050 + $45 = $1,095
Net operating income equals (unit sales - unit sales to break even) × unit contribution margin.
What is net operating income?
Real estate professionals utilize the metric known as Net Operating Income, or NOI, to swiftly determine the profitability of a certain venture. After deducting required operational costs, NOI calculates the revenue and profitability of investment real estate property.
Is net operating income the same as profit?
After all, costs have been deducted, operating profit displays a company's earnings, excluding the cost of debt, taxes, and some one-time expenses. Contrarily, net income is the profit that is still left over after all expenses made during the time have been deducted from sales revenue.
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Answer:
B. buyers bear most of the incidence of the tax.
Explanation:
If demand is inelastic, quantity demanded is insensitive to changes in price.
If supply is elastic, a small change in price has a great effect on quantity supplied. Quantity supplied is sensitive to changes in price.
If a tax is imposed on gasoline, the incidence (who pays for the tax) can be beqred by the consumers because they have an inelastic demand. If the price of gasoline rises , the quantity demanded doesn't change.
If the tax incidence was borne by the suppliers, the quantity supplied would drop.
I hope my answer helps you.
Answer:
The NPV is -$200956.3508. Thus, the shop will not be purchased as the NPV from this investment is negative.
Explanation:
To take the decision to buy or not buy the shoe store, we need to calculate the Net Present Value of the investment in the shoe shop. The net present value (NPV) is the present value of future expected cash inflows from the investment less the initial outlay/cost.
If the NPV is positive, the investment will be done and shop will be purchased and vice versa.
As the cash in flows consist of an annuity of 200000 for 11 years along with a principal sale value, the NPV will be,
NPV = PV of Annuity + PV of Principal - Initial cost
NPV = 200000 * [ (1 - (1+0.15)^-11) / 0.15 ] + 3500000 / 1.15^11 - 2000000
NPV = -$200956.3508
The shop will not be purchased as the NPV from this investment is negative.