Answer:
a and b
Explanation:
Religious orientation has nothing to do with how much money to spend or what machine to use
Answer:
2.96% will be effective rate of the investment
Explanation:
First year:
1,000 x 1 + 10%) = 1,100
<em><u>Second year: </u></em>
1,100 + 3,000 = 4,100 invesmtent balance
4,100 x (1 - 5%) = 3,895
<em><u>Third year:</u></em>
3,895 + 2,000 = 5,895
5,895 x (1 + 2%) = 6012.9
<em><u>Fourth year:</u></em>
6012.9 + 500 = 6512.9
6,512.9 x (1+ 8%) = 7033.932
We calcualte rate that is equivalent with the following cash flow:

We solve using excel goal seek
0.029646151
The amount of interest owed to the bondholders for each payment is $33,750. The amount interest to the bondholders for each payment should be calculated with this formula: Interest Yield Rate x Face Value of Bond x Time (9% x $750,000 x 1/2). The market interest rate of 8% has no effect on the interest payment calculation but it impacted the bond market value.
Answer:
Hi the demand for each product for this question is missing, however, i have provided step by step approach to solving the problem below .
Explanation:
First Calculate the contribution per unit of each product
A B C
Sales price $65.50 $57.50 $75.25
Less Total variable cost ($28.85) ($26.50) ($38.95
)
Less Direct material cost ($11.25) ($8.90) ($22.75)
Contribution $25.40 $22.10 $13.25
Calculate the contribution per limiting factor of each product and rank the products
<em>contribution per limiting factor = contribution per unit ÷ quantity per limiting factor per unit</em>
A B C
Contribution $25.40 $22.10 $13.25
Quantity of limiting factor 4.65 6.3 5.9
Contribution per limiting factor 5.46 3.51 2.25
Ranking 1 2 3
Allocate the limiting factor according to the limiting factor
The company will on produce Product A as this is the most profitable.
Contribution = $25.40
Answer:
Option C is correct.
<u>The required rate of return for Mercury Inc., assuming that investors expect a 5% rate of inflation in the future is 18%.</u>
Explanation:
Real risk free rate = 3%
Inflation Premium = 5%
Nominal risk free rate Rf = Real risk free rate + Inflation Premium = 3% + 5% = 8%
Market risk premium (Rm –Rf) = 5%
Beta = 2
As per CAPM, required rate of return = Rf + beta * (Rm – Rf) = 8% + 2 * 5% = 18%