Answer:
IRR = 3.64%
Explanation:
using a financial calculator or excel spreadsheet we can determine the IRR of this investment:
year 0 = -$15,000
year 1 = $0
year 2 = $0
year 3 = $0
year 4 = $5,000
year 5 = $6,000
year 6 = $7,000
IRR = 3.64%
Since your required rate of return is 12%, you should pay a maximum of $10,128.57
Answer:
Letter b is correct. <em>Private-label brand</em>
Explanation:
Private-lebel brand is when products are supplied or manufactured by a particular company and then labeled with another company's brand. The advantages added to a company that decides to sell a private label product are varied, these items can increase the credibility and reliability of the company, such as increasing the sales flow and diversifying the marketed product lines.
Answer:
The correct answer is option b.
Explanation:
If the federal fund's rates were above the targeted rate, the Fed would need to move it towards the targeted rate. To move the interest rate towards the targeted rate, the government would need to increase the money supply. This can be done by buying bonds. When the Fed buys bonds they pay for it, this causes the money supply to increase. As the supply curve shifts to the right, the interest rate will fall down.
D.) An account earning interest compounded daily.
This is the account that would have the greatest accumulated value at the end of one year.
Let us assume the following figures.
Principal = 1,000
Interest rate = 12% p.a.
Term 1 year
a) account earning no interest = 1,000
b) account earning simple interest
S.I. = 1,000 x 12% x 1 = 120
Balance = 1000 + 120= 1,120
c) account earning interest compounded annually
FV = 1,000 (1+.12)¹
FV = 1,000 (1.12)
FV = 1,120
d) account compounded daily
FV = 1,000 (1 + .12/365)³⁶⁵
FV = 1,000 (1 + 0.00033)³⁶⁵
FV = 1,000 (1.00033)³⁶⁵
FV = 1,000 (1.128)
FV = 1,128
Answer:
Option B
Cost of goods reported =$ 125,000
Explanation:
<em>Overheads are charged to units produced by the means of using an estimated overhead absorption rate. This rate is computed using budgeted overhead and budgeted activity level.
</em>
As a result of this, overhead charged to total units product might be over or under absorbed compared to the actual amount incurred.
<em>The under applied overhead implies that the applied overhead is less than the actual overhead. </em>
This implies that the cost of the goods are under valued. Hence, to accurately valued them, the under applied overhead would be added to the cost of the goods.
Cost of goods reported = cost of goods + under applied overhead
= 120,000 + 5,000 = 125,000
Cost of goods reported =$ 125,000
