Because if you default on the loan they will go after the co-signer for the balance due. Since the co-signer has good credit he won't want to ruin it and that will make him a good bet that he will pay back the loan.
Answer:
$3,765.26
Explanation:
Present value is the sum of discounted cash flows.
Present value can be calculated using a financial calculator
Cash Flow in year 1 = $ 820
Cash Flow in year 2 = 1,130
Cash Flow in year 3 = 1,390
Cash Flow in year 4 = 1,525
I = 10
PV = $3,765.26
To find the PV using a financial calacutor:
1. Input the cash flow values by pressing the CF button. After inputting the value, press enter and the arrow facing a downward direction.
2. After inputting all the cash flows, press the NPV button, input the value for I, press enter and the arrow facing a downward direction.
3. Press compute
I hope my answer helps you
<span>A business becoming incorporated is an example of risk management.</span>
When a business becomes incorporated it is trying to protect the assets of the company. By assessing and making a risk management decision to become incorporated they are protecting themselves and the company as a whole.
Answer:
$50,000
Explanation:
<em>Manufacturing cost is sum of direct material plus direct labour and manufacturing overhead</em>
Direct material is the cost of all materials directly consumed for production purpose.
Direct labour is the cost of labour hours used for directly for production purpose
Manufacturing cost = 15,000+30,000 + 5000
=$50,000
Answer:
$54,000
Explanation:
For computation of Depreciation Expense for the year ending 31 Dec first we need to compute the depreciation under straight line method for the year which is shown below:-
Depreciation under straight line method for the year = (Cost - Residual value) ÷ Estimated useful life
= ($600,000 - $60,000) ÷ 10
= $540,000 ÷ 10
= $54,000
Depreciation expenses = (Depreciation under straight line method for the year ÷ 12) × From Jan 1 to Dec 31
= ($54,000 ÷ 12) × 12
= $4,500 × 12
= $54,000
