Answer: b. mind games and your money
Explanation:
This falls under Mental accounting where our minds play games with our money by dividing them into various accounts and uses based on our emotions.
Sunk costs play a big part in this because we get so attached to the accounts we have put a lot of effort in while neglecting those we have not or do not want to think about. Maria here is proud of her savings account so much so that she does not see the detrimental effect of not paying off the credit card debt which is rising rapidly.
Her savings account is now a sunk cost and she doesn't realize. This principle can help advise her so she understands the games her mind is playing on her and fix it before the damage gets worse.
Answer:
Option E, is correct as effective interest $ 120,839
Explanation:
The coupon interest payable semi-annually is computed thus:
Semi-annual coupon =13%/2*$2000000
=$130,000
However the bond was issued at premium, using effective interest the first interest payment is calculated on the actual issue value of the bond of $2,197,080 using the market rate of interest
effective interest=11%/2*$2,197,080
=$ 120,839.40
Hence,the interest expense based on effective interest is $120,839 rounded to the nearest whole number
Option D is wrong because the effective interest is a semi-annual interest not an annual one.
Answer: True
Explanation:
Lean is simply defined as management practices that are used by companies or organizations in order to improve the effectiveness and the efficiency during production by eliminating waste.
It should be noted that in a lean system, the work in process and raw materials inventory accounts are combined.
Answer:
Total PV= $140,465.69
Explanation:
Giving the following information:
Cash flows:
Cf1= $18,000
Cf2= $26,500
Cf3= $46,000
Cf4= $69,000
The appropriate interest rate is 4.3 percent.
<u>To calculate the present value, we need to apply the following formula on each cash flow:</u>
PV= FV/(1+i)^n
Cf1= 18,000/1.043= 17,257.91
Cf2= 26,500/1.043^2= 24,360
Cf3= 46,000/1.043^3= 40,541.97
Cf4= 69,000/1.043^4= 58,305.81
Total PV= $140,465.69