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3 years ago

Sub-prime loan company is thinking of opening a new office, and the key data are shown below.

1 answer:

Nookie1986 [14]3 years ago

5 0

To complete the above question, please see below:

Sub-Prime Loan Company is thinking of opening a new office, and the key data are shown below. The company owns the building that would be used, and it could sell it for $100,000 after taxes if it decides not to open the new office. The equipment for the project would be depreciated by the straight-line method over the project's 3-year life, after which it would be worth nothing and thus it would have a zero salvage value. No change in net operating working capital would be required, and revenues and other operating costs would be constant over the project's 3-year life. What is the project's NPV? (Hint: Cash flows are constant in Years 1-3.)

WACC 10.0% 
Opportunity cost $100,000 
Net equipment cost (depreciable basis) $65,000 
Straight-line depreciation rate for equipment 33.333% 
Annual sales revenues $123,000 
Annual operating costs (excl. depreciation) $25,000 
Tax rate 35%

The answer is 12,271

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As an important control for the occurrence assertion related to sales, the computer starts with the population of daily sales in

7nadin3 [17]

Answer:

A. bill of lading

Explanation:

The bill of lading is the document that supports the sales invoice as the bil of lading contains the details regarding the shipment and the confirmation with respect to the delivery

So as per the given situation since it is mentioned in the question that for shipping documents the sales invoice should be supported by the bill of lading

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3 years ago

Icy Mocha Company estimates its factory overhead costs to be $35,000 and machine hours to be 5,000 for the year. If the actual h

emmainna [20.7K]

Answer:

d) overapplied $160

Explanation:

$\frac{Cost\: Of \:Manufacturing \:Overhead}{Cost \:Driver}= Overhead \:Rate$

$35,000 expected overhead / 5,000 machine= 7 dollar per machine hour are spend on overhead

applied overhead:

4,980 x 7 = 34,860

actual overehad: 34,700

As the amount of cost enter by the accounting are above the real cost, we are going to increase the manufacturing overhead cost and making the net income lower for this particular reason.

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3 years ago

A recent study found that the death rate for people who sleep 6 to 7 hours per night is lower than the death rate for people who

vaieri [72.5K]

Type of employment, indicator for chronic illness, drug, or alcohol use these variables are likely useful to add to the regression to control for important omitted variables.

What is sleep pattern?

The word sleep pattern, commonly referred to as a sleep-wake pattern, refers to a person's schedule for going to bed and getting up as well as their napping habits. The frequency and length of sleep disruptions may also be part of the sleep pattern.

Type of employment, Chronic illness and drug/alcohol use they ought to be included in regression since they disturb sleep patterns.

As a result, option (a) Type of employment. (b) Indicator for chronic illness. (c) Drug or alcohol use is correct.

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2 years ago

A relatively low saving rate affects productivity growth by: a. decreasing consumption spending and increasing investment in hum

umka2103 [35]

Answer:

C) causing a shortage of funds for investment in physical capital.

Explanation:

In economics, savings equals investment. Higher investments result in higher productivity, that is why the savings rate of a country is the single most important factor in determining future economic growth.

Low savings rate means that current consumption is very large, and that benefits economic growth on the short run (very short run, like 1 or 2 years), but future economic growth will suffer from it.

Imagine your house as the total economy of a nation. You earn $1,000 per month and must decide how much to spend right now and how much to save for future spending. If you spend the $1,000 right now, you will purchase several things and enjoy them immediately. But what happens in one or two weeks. Since you do not have any more money left, you cannot purchase anything else, which reduces your future joy.

Investment increases future wealth and fosters economic prosperity.

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3 years ago

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Joe is a new broker. how often will he be required to reconcile his escrow account(s)?

storchak [24]

Joe is a new broker. He will be required to reconcile his escrow account monthly.

<h3>Who is a broker?</h3>

In order to earn a commission after the trade is completed, brokers organize transactions between buyers and sellers.
Brokers that take on dual roles as buyers or sellers are considered primary parties to the transaction.
Neither function should be mistaken with that of an agent, who represents the principal party in a transaction.
An impartial party whose services are often used in several businesses is a broker.
The main duty of a broker is to connect buyers and sellers; as a result, the broker acts as a neutral intermediary between a buyer and a seller.
A real estate or stockbroker who helps in the sale of a property would be an example.

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1 year ago