Answer:
The years of repayment is 7.96 years
Explanation:
The number of years of the loan repayment can be computed using nper formula in excel.
=nper(rate,-pmt,pv,fv)
rate is the monthly interest rate which is 6.6%/12=0.0055
pmt is the amount of monthly repayment which is $2,400
pv is the amount of the finance package received which is $178,000
fv is the total amount of repayment which is unknown hence taken as zero
=nper(0.0055
,-2400,178000,0)= 95.55 months
= 95.55 /12 months=7.96 years
Answer:
Consider the following calculations
Explanation:
Step 1. Given information.
Asset Cost Adjusted Basis
--------------------------------------------------
Skidder 230,000 40,000
Driller 120,000 60,000
Platform 620,000 0
-------------------------------------------------
Total 970,000 100,000
Step 2. Formulas needed to solve the exercise.
Allocation for each asset = value sold * (adjusted basis / total)
Gain on sale = Sales price - Adjusted basis amount
Step 3. Calculation and Step 4. Solution.
Sales price is allocated on the basis of adjusted value.
- Skidder = 300.000 * 40.000/100.000 = 120.000
- Driller = 300.000*60.000/100.000 = 180.000
- Platform = 300.000*0/100.000 = 0
Gain on sale = Sales price - Adjusted basis amount
= 300.000 - (40.000 + 60.000 + 0)
= 200.000
Answer:
(B) Management
Explanation:
Management audits are a means of evaluating the effectiveness and efficiency of various systems within an organization, showing how well the management is deploying and applying its strategies in the interests of shareholders, employees, and the organization's reputation.
Answer:
Coupon rate is 5.17%
Explanation:
Yield to maturity is the annual rate of return that an investor receives if a bond bond is held until the maturity.
Assuming Face value of the bond is $1,000
Face value = F = $1,000
Selling price = P = $948
Number of payment = n = 9 years
Bond Yield = 5.9%
The coupon rate can be calculated using following formula
Yield to maturity = [ C + ( F - P ) / n ] / [ (F + P ) / 2 ]
5.9% = [ C + ( $1,000 - $948 ) / 9 ] / [ ( $1,000 + $948 ) / 2 ]
5.9% = [ C + $5.78 ] / $974
5.9% x $974 = C + $5.78
$57.466 = C + $5.78
C = $57.466 - $5.78 = $51.686
Coupon rate = $51.686 / $1,000 = 0.051686 = 5.17%
