Answer:
EAR = 148%
Explanation:
calculating the EAR ( applying the formula for present value of annuity )
cost of case = 12 * 12 * ( 1 - 0.09 ) = 131.04
Pv = 131.04
cost per case = $12
no of weeks = 12 weeks
rate of the wine per ( IRR ) = IRR(57;56;55;;;;1)= 1.76319
rate of the wine per week = 1.76319%
therefore EAR = ( 1 + 0.0176319) ^52 - 1 = 148.15% ≈ 148%
Answer:
Installing equipment, designing systems, gathering information
Answer:
a. Is answered
b. The amount realized increases.
As the mortgage is assumed by the buyer, the seller is now free of the debt in addition to making cash from selling. Realized value therefore increases.
c. The amount realized decreases.
As the mortgage is assumed by the seller, they will have to pay off the mortgage from the cash received therefore their realized value decreases.
d. Amount realized increases.
As the buyer is gets the property subject to the mortgage, they will be the ones making the mortgage payments instead of the seller so the seller's realized value will increase.
e. Realized value increases to $10,000.
The seller accepted the stock so the fair value will be the amount considered for the realized value.
Answer:
8%
Explanation:
Calculation for the annual market interest rate on the bonds
Using this formula
Annual market interest rate=(Interest expenses/Carrying value)× 2 payments per year
Where,
06/30/2021 Interest expenses=$7,581
01/01/2021 Carrying value =$189,516
Let plug in the formula
Annual market interest rate=
($7,581/ $189,516)×2 payments per year
Annual market interest rate=0.04×2 payments per year
Annual market interest rate=0.08×100
Annual market interest rate=8%
Therefore the the annual market interest rate on the bonds will be 8%
Answer:
Predetermined manufacturing overhead rate= $53,75 per machine hour
Explanation:
Giving the following information:
Order size:
Estimated activity cost= $585,866
Estimated machine hours= 10,900
<u>To calculate the predetermined manufacturing overhead rate we need to use the following formula:</u>
Predetermined manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base
Predetermined manufacturing overhead rate= 585,866/10,900
Predetermined manufacturing overhead rate= $53,75 per machine hour