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weeeeeb [17]
3 years ago
5

Investment A cost 12,000 today and it pays back 15,500 two years from now. Investment B cost $8,000 today and it pays back $6,00

0 each year for two years. If Interest of 5% is used, which alternate is superior? (Hint: Use present worth your cost is negative and your profits are positive) Group of answer choices
Business
1 answer:
crimeas [40]3 years ago
4 0

Answer:

Investment "B" is superior.

Explanation:

Below is the calculation of each investment net present worth.

Net present worth of Investment A = -12000 + 15500(P/F, 5%, 2)

Net present worth of investment A = -12000 + 15500 (0.9070)

Net present worth of investment A = 2058.95

Net present worth of Investment B = -8000+ 6000(P/A, 5%, 2)

Net present worth of investment B = -8000 + 6000 (1.8594)

Net present worth of investment B = 3156.4

Investment "B" is superior because its net present worth is greater.

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"when the assembly line was applied to more industries, america entered the:"
myrzilka [38]
<span>Production economy. This was a period when America was less on exporting raw goods and more into processed goods, which have greater value because of the processes that made it more manageable and usable by the public or other industries.</span>
3 0
3 years ago
On January 1, 2021, Tiny Tim Industries had outstanding $1,000,000 of 9% bonds with a book value of $970,500. The indenture spec
nevsk [136]

Answer:

loss at extinguishment 8,122.50 dollars

Explanation:

we should compare the amount we pay for the bonds and the book value of the bonds:

book value   978,877.50*

call price   <u>   (987,000.00)  </u>

loss                    (8,122.50)

*We are given with the value at January 1st we must adjust for the value at july 1st using effective-rate method

970,500 x 11%/2 = 53,377.5 interest expense

1,000,000 x 9%/2 = 45,000 cash outlay

amortization               8,377.5

<em><u /></em>

<em><u>carrying value:</u></em>

970,500 + 8,377.5 = 978,877.5

6 0
3 years ago
Examine the quarterly sales data in a little different way. Contruct two pie charts, one for sales in 2012 and the other for sal
julsineya [31]

Answer:

sales are becoming less seasonal

Explanation:

besides constructing a pie chart, we can also answer this question by percentages (which is more exact).

2012:

total sales = $69,338

Q1 sales = $10,613 / $69,338 = 15.31%

Q2 sales = $6,424 / $69,338 = 9.26%

Q3 sales = $19,283 / $69,338 = 27.81%

Q4 sales = $33,019 / $69,338 = 47.68%

2013:

total sales = $142,238

Q1 sales = $30,342 / $142,238 = 21.33%

Q2 sales = $33,867 / $142,238 = 23.81%

Q3 sales = $34,246 / $142,238 = 24.08%

Q4 sales = $43,783 / $142,238 = 30.78%

During 2012, almost 50% of total sales happened during Q4, something similar to selling toys which are extremely seasonal due to Christmas.

During 2013, this changed since Q4 sales only represent 30% of total sales. Sales increased during Q1 and Q2, and slightly decreased in Q3. They are much more similar now, since sales are almost evenly spread throughout the year.

7 0
2 years ago
In order to accurately assess the capital structure of a firm, it is necessary to convert its balance sheet figures from histori
pychu [463]

Answer:

$19,708,745

Explanation:

We first have to calculate the present value of the bonds:

Nper = 20 (10 years x 2 payments per year)

R = 11% / 2 = 5.5%

Payment = 83 / 2 = 41.50

Future value = 1,000

PV = ?

To calculate the present value we can use an excel spreadsheet and the present value function =PV(5.5%,20,41.5,1000) = $838.67

Now we calculate how many bonds were issued = $23,500,000 / $1,000 = 23,500 bonds.

To determine the market value of the debt outstanding we multiply the present value of the bonds times the total number of bonds outstanding

= $838.67 x 23,500 = $19,708,745

8 0
3 years ago
In which business stage do you decide wether a business opportunity is a god fit for you personally
Kaylis [27]

Identify.

In the identify stage, you will determine if the opportunity fits your skills, interests, and goals.

4 0
3 years ago
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