All else constant, if butter and margarine are substitute goods, then as the price of butter rises,

Assume that you have entered into a swap agreement for a notional of 100M USD under which every 6 months you agree to pay LIBOR

hodyreva [135]

Answer:

C) 0.5 USD

Explanation:

Swap is an arrangement in which two parties exchange their interest rates for mutual benefit. One party may receive fixed rate and other will receive floating rate based on LIBOR. In the given scenario the swap agreement was originated when the LIBIOR was 3%. The fixed rate was set to be at 4% so the net gain at the time of inception was 1%. When LIBOR increased after six month the net gain declined to only 0.5%.

4 0

3 years ago

The property appraisal district for Marin County has just installed new software to track residential market values for property

Mama L [17]

Answer:

Equivalent annual cost = $16,502.89

Explanation:

Equivalent annual cost = Present Value of cost / Annuity factor

Present value of cost:

PV of additional cost =50,000 ×1.05^(-10)=30,695.66

PV of maintenance cost

First four years= 5,000× (1-1.05^(-4))/0.05=17,729.75

From year 5 to infinity = (8,000/0.05)× 1.05^(-4)=131,632.39

PV of maintenance cost = 17,729.75 + 131,632.396= 149,362.14

PV of costs = 150,000 + 30,695.66 + 149,362.14= 330,057.8112

Annuity factor = 1/r = 1/0.05= 20

Equivalent annual cost = 330,057.8112 /20=$16,502.89

Equivalent annual cost = $16,502.89

4 0

3 years ago

BE18.12 (LO 2, 3) Manual Company sells goods to Nolan Company during 2020. It offers Nolan the following rebates based on total

Lostsunrise [7]

Answer:

$103,400

Explanation:

Does Manuel have any certainties that Nolan will purchase more than 30,000 units during the year? Apparently, according to historic sales, Nolan purchases at least 40,000 units per year, so Manuel should consider that Nolan will again purchase a similar amount this year and therefore, will be entitled to a rebate.

Another issue that must be considered is that 30,000 units / 4 quarters = 7,500 units per quarter, and Nolan clearly purchased more than that.

A rebate is not a discount, it happens when the seller offers a certain amount of goods to a buyer without cost because the buyer purchased more than an specific amount. It is basically an incentive or prize that Manuel gives Nolan for being a good client.

Manuel should recognize $110,000 x (1 - 6%) = $103,400 in revenues

6 0

3 years ago

When Yolanda asked her firm's advertising agency to estimate how often consumers saw her firm's IMC message and what percentage

Tcecarenko [31]

Answer:

A. 160

Explanation:

8 0

3 years ago

Need help fast please!!

arsen [322]

I think it’s C if I’m wrong I’m so sorry

4 0

3 years ago