Answer:
Current yield = 7.14%
Explanation:
As we know that: current yield = Annual coupon payment/Current market price of bond
= 75/1050
= 7.14%
this rate represents for an investor would expect to earn because face vale and market price of bonds differs so the investor much rely on that factor.
Answer:
c. less corporate profits.
Explanation:
Subtract all the expenses from the revenue that are solely associated with Cookbook product line.
60000 - 36000 - 18000 - 2000 = 4000
This $4000 suggests that CookBook product line contributes profit of 4000 towards the company. So If the cookbook product line had been discontinued prior to this year, the company would have reported less corporate profits by $4000.
Answer:
A. $21,100
Explanation:
net cash flow year 1 = {[savings year 1 - (depreciation expense year 1)] x (1 - tax rate)]} + depreciation expense year 1
cash flow year 1 = {[$25,000 - ($30,000 x 33.33)] x (1 - 26%)} + ($30,000 x 33.33) = [($25,000 - $10,000) x 0.74] + $10,000 = $11,100 + $10,000 = $21,100
Answer:
Internal Rate of Return (IRR) = 10%
Explanation:
The computation of IRR for the new production system is shown below:-
PV factor for Internal Rate of Return = Investment cost ÷ Annual net cash savings
PV factor for Internal Rate of Return = $4,607,200 ÷ $800,000
= 5.759
The PV factor 5.759 in Present value of a Annuity of $1 table for 9 years is closest to 10%
Internal Rate of Return (IRR) = 10%
