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kvv77 [185]
3 years ago
15

Upon graduating from UCI, you start a job in finance earning $72,000 per year and decide to buy a home. You can afford to pay no

more than $1,000 per month for the fixed monthly payments on a 30-year fixed-rate home loan (mortgage) and the current conventional 30-year fixed mortgage annual interest rate that you qualify to borrow at is 4%. What is the maximum size home loan you can afford? Please round your numerical answer to the nearest dollar.
Business
1 answer:
vovikov84 [41]3 years ago
6 0

Answer:

Maximum size of home loan than can afford is  $209,471

Explanation:

Rate of interest on borrowing = 4%

Per month rate (r) = 4% / 12 = 0.33%  

n = 30*12 = 360 months

Maximum size of home loan than can afford =

= $1000 * PVAF (0.33% , 360)

= $1000 * 209.47135

= $209471.35

= $209,471

Maximum size of home loan than can afford =  $209471

Note: Monthly payment * PVAF( r, n)

PVAF at (0.33% , 360)

PVAF = 209.47135

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Mashutka [201]

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3 years ago
____ is a planning process falling under the Project Integration Management knowledge area. Schedule development Develop project
lianna [129]

Answer:

Develop project management plan

Explanation:

Project integration management is the coordination of all aspects of a project. It involves coordination of the following: tasks, stakeholders, resources, along with any issues arising from parties in the project, evaluating resources, and making choices between different lines of action.

So developing a project management plan is a process that fall under integration management as defined.

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3 years ago
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Which of the following is not an example of a cost and its related cost driver? Cost Cost Driver A. Rent Square feet B. Transpor
valina [46]

Option C

Direct labor hours ; Indirect labor is not an example of a cost and its related cost driver

<u>Explanation:</u>

A cost driver triggers a variation in the price of the activity. The idea is everywhere ordinarily employed to allocate aloft prices to the abundance of built assemblies. It can further be related to activity-based costing inquiry to ascertain the circumstances of expenses, which can be done to depreciate overhead prices.

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3 years ago
When inventory declines in value below original (historical) cost, and this decline is considered other than temporary, what is
quester [9]

Answer:

Explanation:

The applicable accounting standard IAS 2 (Inventory) requires that inventory be carried at the lower of cost or net realizable value.

Initial recognition of inventory is at cost. In other words, where the cost is lower than the net realizable value, inventory is written down to the net realizable value.

As such, when inventory declines in value below original (historical) cost, and this decline is considered other than temporary, the maximum amount that the inventory can be valued at is the net realizable value.

The right option is b. Net realizable value

5 0
3 years ago
Please show all work in excelGreat Lakes Shipping is an all-equity firm with anticipated earnings before interest and taxes of $
padilas [110]

Answer:

$2,163,171

Explanation:

We use the MM model with taxes to evaluate a firm with financial leverage

V_l = V_u + t \times D\\$Where:\\V_l = $value of the levered firm\\Vu = value of unlevered firm\\D = debt of thee firm\\t = tax rate

D x t = 1,250,000 x 0.36 = 450,000

<u />

<u>Now we calcualte the value of the firm without financial leverage:</u>

The unlevered firm will produce 439,000

It pays taxes for 36% and no interest expense so his net income will be

439,000 x ( 1 - 0.36) = 280,96‬0

then we calculate using the cost of equity the value of the firm usng the perpetuity formula:

280,960/.164 = 1,713,170.73 = 1,713,171

Now we add the debt tax shield to calculate the firm value with leverage

1,713,171 + 450,000 = 2,163,171

6 0
3 years ago
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