Answer:
savings per year = $20,500 - $10,500 = $10,000
the loan and interest are not included in the calculation
initial outlay = $50,000
cash flows 1-8 = $10,000
cash flow 9 = $15,000
discount rate = 15%
using a financial calculator, the NPV = -$862.85, and the IRR = 14.53%
Answer:
[C] Strike price minus the premium
Explanation:
A put buyer refers to the one who purchases a right (and not the obligation) to sell(put) the underlying asset at a pre determined strike price/exercise price at a future date.
A put buyer is under no obligation to exercise his right of selling the underlying asset. He will exercise his right only when his strike price is greater than the current market price upon expiry of the contract.
Put Buyer's profit is expressed as;
= Strike price - Option premium paid - Current market price upon expiry
Thus, his NET sales proceeds are equal to his Strike Price as reduced by Option premium paid.
D, 12,500. Since she makes 50,000 she falls under the 25% zone and 25% of 50,000 is 12,500. Find that by doing 50,000 times 0.25
Answer:
D) 18.2 times
Explanation:
The accounts receivable turnover is determined by dividing the total credit revenues by the average receivables.
The average receivables is the sum of the opening and closing receivable balances divided by 2.
The average receivables is ( $ 1,189 + $ 955) / 2 = $ 1,072
The total revenues in the absence of other information is considered as credit sales.
Average receivables turnover = $ 19,548 / $ 1,072 = 18.24 times
