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Answer: If the pizza parlor produces 5000 pizzas a month its total variable costs per month will be
5000*(4.004 + 2.002+0.60060)
33,033 will be the total variable costs.
Explanation:
Answer: E) Lessors provide a source of financing for lessees.
Explanation:
A Lease is a form of financing because in financing, an entity provides funding in the form of assets whether cash or otherwise to another entity to allow them use to operate their business. The entity that was provided with funding will then pay a periodic payment as a way to pay off the funding.
This is what happens in leases. The Lessor is the owner of the asset and they lease it to the Lessee who then uses it and pays a periodic amount to the Lessor for using the asset.
Answer:
D.5 years
Explanation:
Annual Depreciation = Cost/Useful life
$15,000=$80,000/Useful life
Useful Life=$80,000/$15,000
Useful Life=5.33
Answer:
Total $1,173.2544
Explanation:
The price of the bond will be equivalent to the coupon payment and maturity discounted at the YTM
<em><u>Coupon payment PV will be an annuity:</u></em>
C 35.50 (1,000 x 7.1% / 2 )
time 30 (15 years x 2 payment per year)
rate 0.027 (YTM /2 )
PV $723.5919
<em><u> The maturity will be the present value of a lump sum</u></em>
Maturity 1,000.00
time 30.00
rate 0.027
PV 449.66
We add bot h to gett the market value
PV c $723.5919
PV m $449.6625
Total $1,173.2544
