1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
user100 [1]
3 years ago
13

A borrows 10,000 from B and repays with 40 quarterly installments at a 4% annual effective rate. After 6 years, B sells the righ

ts to future payments to C, at a price which yields C 6% annual effective over the remaining installment periods. What price did C pay
Business
1 answer:
Vsevolod [243]3 years ago
6 0

Answer:

$4,303.68

Explanation:

Quarterly payment = $10,000 / 32.835 (PVIFA, 1%, 40 periods) = $304.55

After 6 years, the principal due = $4,483

Present value of an annuity = payment x PVIFA = $304.55 x 14.13126 (PVIFA, 1.5%, 16 periods) = $4,303.68

The difference is not significant since the remaining payments are not many, and the increase in quarterly rate is only 0.5%

You might be interested in
Taylor Music Center has 5 CD players on hand at the balance sheet date. Each costs $400. The current replacement cost is $380 pe
babymother [125]

The correct answer is $380 per unit.

The lower-of-cost-or market rule requires that you report the lower value of either the purchase price or current market price of items in inventory. In this case the current market price is lower, so it should be used when calculating the value of inventory.

8 0
4 years ago
What are examples of cocurricular education? Check all that apply.
DENIUS [597]

a CTSO for students taking marketing classes

a club providing hands-on laboratory experience for students taking a science class

an agricultural organization for students in an agricultural school

4 0
3 years ago
Read 2 more answers
DeKay Dental Supplies issued $10,000 of 20-year bonds on January 1, 2021. The bonds pay interest semiannually. This is a partial
valina [46]

Answer:

8%

Explanation:

Calculation to determine the stated annual rate of interest on the bonds

First step is to calculate Semi annual coupon rate

Semi annual coupon rate= 400 ÷ $10,000

Semi annual coupon rate= 4%

Now let determine the Annual rate of interest

Annual rate of interest= 4% × 2 (Semiannually)

Annual rate of interest= 8%

Therefore the stated annual rate of interest on the bonds is 8%

7 0
3 years ago
Mervon Company has two operating departments: mixing and bottling. Mixing occupies 23,045 square feet. Bottling occupies 18,855
fiasKO [112]

Answer:

Mixing= $112,000

Bottling= $91,800

Explanation:

Giving the following information:

Mixing occupies 23,045 square feet

Bottling occupies 18,855 square feet.

Total sq= 41,900

Indirect factory costs include maintenance costs of $204,000.

First, we need to calculate the proportion of square feet for each department:

Mixing= 23,045/41,900= 0.55

Bottling= 18,855/41,900= 0.45

Now, we can allocate overhead:

Mixing= 0.55*204,000= $112,000

Bottling= 0.45*204,000= $91,800

7 0
4 years ago
Drag the Low risk and High risk project points so their expected rates of return are 9% and 11%, respectively. If you could choo
valkas [14]

Answer:

a. Project Low because its expected rate of return is higher than its WACC

Explanation:

Weighted Average Cost of Capital WACC determines firms cost of capital. It includes all sources of finance which are included in firm capital structure. The expected rate of return is the rate at which a project is able to generate return or benefits. For any project to be beneficial, its expected return should be higher than its WACC. We will select project Low because its expected rate of return is higher than its WACC.

6 0
3 years ago
Other questions:
  • If a perfectly competitive firm can sell a bushel of soybeans for $25 and it has an average variable cost of $26 per bushel and
    13·1 answer
  • Dusty would like to buy a new car in six years. He currently has $13,500 saved. He’s considering buying a car for around $17,500
    15·1 answer
  • Budgeted variable overhead for the year is $150,000. Expected activity is 30,000 standard direct labor hours. The actual hours w
    7·1 answer
  • A quota on imported avocadoes ______________ the price of avocadoes, _____________ consumers’ surplus for avocado buyers, ______
    5·1 answer
  • Managers are important members of the organization. Within an organization, there are managers at four levels: top, middle, firs
    15·1 answer
  • Cullumber Co. processes jam and sells it to the public. Cullumber leases equipment used in its production processes from Marin,
    12·1 answer
  • How much interest you pay depends on_________
    9·1 answer
  • The normal rate of unemployment around which the unemployment rate fluctuates is called cyclical unemployment.
    7·1 answer
  • Click this link to view O‘NET's Work Styles section for General and Operations Managers. Note that common work
    8·2 answers
  • Trevor is a marketing professional in a small firm. He wants to promote his firm’s online shopping website. He targets only thos
    7·2 answers
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!