False. The rule of 72 is a way to estimate how many years it will take an investment to double by dividing 72 by the fixed annual interest rate.
Answer:
$5.506 million
Explanation:
Data provided in the question:
Cost of the facility = $125 million
Debt-equity ratio = 0.65
cost of equity = 6.1 percent
cost of debt = 1.8 percent
Now,
Let the equity be 'E'
Thus,
= 0.65
or
Debt = 0.65E .................(1)
Thus,
Debt + Equity = $125 million
0.65E + E = $125 million [Debt = 0.65E from (1)]
1.65E = $125 million
or
E = $75.75 million
Thus,
Debt = 0.65E
or
= 0.65 × $75.75
= $49.24 million
Total flotation cost = 6.1% × $75.75 million + 1.8% × $49.24 million
= (4.62 + 0.886) million
= $5.506 million
Answer:
He will have $102,979 in his retirement account in 10 years.
Explanation:
Annual Payment = $2,000
Number of Year = n = 10
Interest rate = i = 5%
Compounded Quarterly
Future value after 10 years
FV = A [ ( ( 1 + ( r / m )^mt ) - 1 / ( r / m )
FV = $2,000 [ ( ( 1 + ( 0.05 / 4 )^40 ) - 1 / ( 0.05 / 4 )
Future value = $102,979
So, Ira Schwab will have $102,979 in his retirement account in 10 years.
Answer:
protection profiles.
Explanation:
Common Criteria can be defined as an international set of guidelines and specifications which are designed and developed for the evaluation of an information security product, in order to ensure that they meet an agreed-upon and specific security standard for general use by the public. It comprises of two (2) key components: Evaluation assurance level and protection profiles.
In the Common Criteria, the common set of functional and assurance requirements for a category of vendor products deployed in a particular type of environment are known as protection profiles.
Answer:
B. Currently used manufacturing capacity that has alternative uses
Explanation:
Make or buy decision is the process involved in determining whether to produce a product in house or purchase it from an external supplier.
Manufacturing Capacity is described as the production capability of an object in a manufacturing process. The object could be an operator, a machine or even a work center. Every resource in a manufacturing process has its determinable capacity and this is a relevant cost to consider when determing whether to produce or buy a product.
Looking at the definition, it is clear that current capacity of manufacturing with alternative uses is important. In other words, it is very crucial to be able to determine the cost of using the current manufacturing capacity to either make the product in house and then weigh this cost against the cost of using the same manufacturing capacity to manufacture an alternate product.
It stands to reason, (although other costs are weighed) that the product production (current or alternate) that can be manufactured at a lesser cost should be chosen and this is a very crucial decision in a make-or-buy decision.
Looking at the other options, the golden rule is that any cost that is not a direct cost to the manufactur of a product in house or its outsourcing should be ignored in making the decision.