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3 years ago

Which of the following statements concerning ideal standards is incorrect?

Business

1 answer:

lbvjy [14]3 years ago

8 0

Answer:

C. Ideal standards are better suited for cash budgeting than practical standards

Explanation:

The standards that basically handles no work interruptions or no machine breakdown is called ideal standards.

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Bond Valuation and Changes in Maturity and Required Returns Suppose Hillard Manufacturing sold an issue of bonds with a 10-year

g100num [7]

Answer:

It will be sold at $1,186.71

Explanation:

We will calculate the present value of the cuopon payment and the maturity at the new market rate of 7%

The coupon payment will be calcualte as the PV of ordinary annuity

$C \times \frac{1-(1+r)^{-time} }{rate} = PV\\$

C $50 (1,000 x 10%/2 as there are 2 payment per year)

time 16 (8 years x 2 payment per year)

rate 0.035 (7% rate / 2 payment per year)

$50 \times \frac{1-(1+0.035)^{-16} }{0.035} = PV\\$

PV $604.7058

The maturity will be calculate as the PV of a lump sum

$\frac{Maturity}{(1 + rate)^{time} } = PV$

Maturity 1,000.00

time 8 years

rate 0.07

$\frac{1000}{(1 + 0.07)^{8} } = PV$

PV 582.01

The market price will be the sum of both:

PV cuopon $604.7058

PV maturity $582.0091

Total $1,186.7149

6 0

3 years ago

Huggins Co. has identified an investment project with the following cash flows. Year Cash Flow 1 $ 830 2 1,150 3 1,410 4 1,550 I

Rasek [7]

Answer:

$4,013.10.

$3,329.54.

Explanation:

If discount rate is 8%

PV of Cash Flows :

($830 / 1.08^1) + ($1,150 / 1.08^2) + ($1,410 / 1.08^3) + ($1,550 / 1.08^4)

$768.52 + $985.94 + $1,119.30 + $1,139.30

$4,013.10

If discount rate is 16%

PV of Cash Flows :

($830 / 1.16^1) + ($1,150 / 1.16^2) + ($1,410 / 1.16^3) + ($1,550 / 1.16^4)

$715.52 + $854.64 + $903.33 + $856.05

$3,329.54.

7 0

3 years ago

Suppose our firm produces chartered business flights with capital (planes) and labor (pilots) in fixed proportion (i.e., one

GREYUIT [131]

Answer:

A. follow the 45-degree line from the origin

Explanation:

In order to diversify the business that means the output level should be increased we need to rise the input i.e. no of planes and pilots

Now if we increase the no of planes by 1 so here the no of pilots should also be increased by 1 units

So the expansion path equation is y = x

Therefore the option a is correct

5 0

3 years ago

Describe an advertisement you've seen that uses a desire based marketing message. What desire does this ad appeal to? (2-4 sente

igomit [66]

1.I once saw an advertisement for a weight loss supplement. The persons in the ad seemed to change significantly after using the product. Apart from their appearance, everything seemed to be going better for them.

6 0

3 years ago

Read 2 more answers

Pete Morton is planning to go to graduate school in a program of study that will take three years. Pete wants to have $13,000 av

podryga [215]

Answer:

$34,116

Explanation:

To determine how much Pete would should save, we have to determine the present value of $13,000

Present value is the sum of discounted cash flows

present value can be calculated with a financial calculator

Cash flow each year from year 1 to 3 = $13,000

I = 7%

Present value = $34,116

To find the PV using a financial calculator:

1. Input the cash flow values by pressing the CF button. After inputting the value, press enter and the arrow facing a downward direction.

2. after inputting all the cash flows, press the NPV button, input the value for I, press enter and the arrow facing a downward direction.

3. Press compute

7 0

3 years ago