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Anastaziya [24]
3 years ago
5

You have a loan outstanding. It requires making three annual payments at the end of the next three years of $1000 each. Your ban

k has offered to restructure the loan so that instead of making the three payments as originally agreed, you will make only one final payment at the end of the loan in three years. If the interest rate on the loan is 5%, what final payment will the bank require you to make so that it is indifferent between the two forms of payment
Business
1 answer:
Shalnov [3]3 years ago
6 0

Answer:

$2722.82

Explanation:

Present value of loan = $1,000 * [(1+5%)^3 - 1]/ 5%

= $1,000 * (1.157625 - 1) / 0.05

= $1,000 * 0.157625/ 0.05

= $1,000 * 3.1525

= $3152.50

The present value of loan before bank restructuring is $3152.

Future value = Cash flow / (1+r)^n

= $3152 / (1+0.05)^3

= $3152 / (1.05)^3

= $3152 / 1.157625

= $2722.82

Therefore, the final payment required to pay to make indifferent for both payment is $2722.82

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The statement above is true. When using interval method, it does not matter the number of responses, if the behavior occur in a given segment then the observer has to record it as a single event. For instance, in an English class of one hour, that is divided into six segments of ten minutes each. It does not matter the number of responses, if the behaviour occurs within the segment of ten minutes, then it has to be recorded as a single event.
6 0
3 years ago
The following data relate to direct materials costs for November: Actual costs 4,700 pounds at $5.40 Standard costs 4,500 pounds
Vera_Pavlovna [14]

$2,820 favorable

Calculation to determine direct materials quantity variance

Using this formula:

Direct materials price variance = (Actual materials cost per lb. - Standard materials cost per lb.) × Actual quantity lb

Direct materials price variance = ($5.40 - $6.00) × 4,700 lbs.

Direct materials price variance = (-$0.60) × 4,700 lbs.

Direct materials price variance = $2,820 favorable

Therefore the direct materials price variance is $2,820 favorable.

Direct material costs:

are the costs of raw materials or parts that go directly into producing products. For example, if Company A is a toy manufacturer, an example of a direct material cost would be the plastic used to make the toys.

Why is direct materials important?

Direct materials is an important concept in throughput analysis, where throughput is the revenue generated by a product sale, less all totally variable costs. In most situations, the only totally variable costs associated with a product are its direct materials.

What do you mean by actual cost?

In accounting, Actual Cost refers to the amount of money that was paid to acquire a product or asset. This could be the historical, past, or present-day cost of the product

What do you mean by standard cost?

A standard cost is the budgeted cost of a regular manufacturing process against which actual costs are compared. Of course, if a new product, service, or process is to be carried out, the initial standard costs will have to be estimated.

Learn more about direct costs:

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6 0
1 year ago
Development cost $ 1,250,000 Estimated development time 9 months Pilot testing $ 200,000 Ramp-up cost $ 400,000 Marketing and su
siniylev [52]

Answer:

Tuff Wheels

The net present value of the project is:

= $13,617,154

Explanation:

a) Data and Calculations:

Development cost $ 1,250,000

Estimated development time 9 months

Pilot testing $ 200,000

Ramp-up cost $ 400,000

Total Project cost in Year 0 = $1,850,000 ($ 1,250,000 + $200,000 + $400,000)

Marketing and support cost $ 150,000 per year

Sales and production volume 60,000 per year

Unit production cost $ 100

Unit price $ 205

Contribution per unit = $105 ($205 - $100)

Total contribution margin = $6,300,000 ($105 * 60,000)

Marketing and support cost  $ 150,000

Interest rate 8%                         148,000

Net income (cash flow)      $6,002,000

Discount rate = 8%

Annual net cash inflow = $6,002,000

Annuity factor = 2.577

Total cash inflow = $15,467,154 ($6,002,000 * 2.577)

Total project cost      1,850,000

Net present value  $13,617,154

8 0
2 years ago
Break-even analysis is a tool that marketers are likely to employ during the ____ stage of the new-product development process.
Kobotan [32]

business analysis stage, this occurs before development

6 0
3 years ago
Compile a job advertisement for a receptionist vacancy
xz_007 [3.2K]

Answer:

<h2>                     RECEPTIONIST NEEDED - FRONT DESK</h2>

 <em>JustJay Limited is looking to hire a young and vibrant young person to join</em>

<em>                       our team as a receptionist for the front desk. </em>

<h2>Responsibilities</h2>
  1. Welcoming clients and prospective clients.
  2. Handling both outgoing ang incoming calls to route them as required.
  3. Handing mail logistics.
  4. Carrying out other Administrative duties as required.

<h2>Qualifications</h2>
  • Age between 21 and 28
  • Computer literate
  • Must possess great Interpersonal skills
  • Must be a team player
  • GED holders are welcome to apply.
  • Experience in similar role would be an added advantage.

                         WE OFFER ATTRACTIVE PACKGAGES.

<em>Send us your CV at </em><em>hrjustjayltd . com</em><em> or contact us on </em><em>1</em><em> </em><em>- 585 - 244 - 8522</em><em>. </em>

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