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Lerok [7]
2 years ago
7

On October 1, 20X1, a company purchased a piece of land by agreeing to pay the seller $450,000 in two years. If the company had

borrowed the money from a bank to pay the seller immediately, management estimates the bank would have required interest of 9%. For what amount should the company record the land on the date of purchase (rounded to the nearest dollar)?
a. $450,000.
b. $412,844.
c. $378,756.
d. $369,000
Business
1 answer:
erma4kov [3.2K]2 years ago
4 0

Answer:

$378,756

Explanation;

The net present value of land will be =$450,000/1.09^2=$378,756

The land will be recorded in net present value of land by discounting the cost of land with interest rate of buying from the bank.

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Answer:

d. It is best measured using the statistic variance inflation factor (VIF).

Explanation:

Multicollinearity is an important issue in multiple regression model, having many independent/ explanatory variables. Multicollinearity is the situation in which two or more independent variables are highly correlated. It is problematic because it increases the standard error of independent variable coefficient & undermines its statistical significance

Variance Inflation Factor [VIF] is a check & corrective measure of multicollinearity.  

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What are examples of cocurricular education? Check all that apply.
DENIUS [597]

a CTSO for students taking marketing classes

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4 0
2 years ago
Read 2 more answers
Fenland Co. plans to retire $120 million in bonds in five years, so it wishes to fund a savings account at the beginning of each
solniwko [45]

Answer:

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Sonja [21]

The missing word in the blank is :

small

hence the completed paragraph is:

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If a firm has the market price of the firm's common stock of $500 and its annual earnings per share of $50 , then the firm has a
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\frac{Market \: price}{EPS}

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