IRR in Excel!(CHAPTER 9) Your company is considering a new project opportunity. It would immediately receive $200. In return, in
1 answer:
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Answer: The actual rate of the mortgage is 5.27%.
Since we're taking two mortgages for a total of $200,000 for 30 years, we can find the actual rate of the mortgage by finding the weighted average of the two rates. The weights in this case will be the proportion of loan taken at each rate
We have
Rates Weights Rates * Weights
4.15 0.80
9.75 0.20
Total 5.27%
Answer:
option (D) loss, $3,000
Explanation:
Given:
price of the truck = $48,000
estimated residual value = $8,000
Exchange price of the truck = $60,000
Trade allowance = $35,000
Since, straight line depreciation is given, thus,
Total depreciation =
or
Total depreciation = $5,000 per year
Therefore,
the book value after two years
= Price of truck - total depreciation in two years
or
= $48,000 − ($5,000 × 2 years)
= $38,000
Now,
a trade allowance received ( i.e $35,000 ) is less than the book value
therefore a loss is recorded
The amount of loss = (Book value - trade allowance received)
or
The amount of loss = $38,000 - $35,000 = $3,000
Hence, correct answer is option (D) loss, $3,000
Answer:
Total cost Groceries department 4,103,238
Total cost Gif department 366,763
Explanation:
Adminstration cost will be distributed among Janitorial, Groceries and Gifs
we add up the employee hours:
350 + 2690 +160 = 3200
Then, we cross multuply:
190,000 x 350/3200 = 20781.25
190,000 x 2690/3200 = 159718.75
190,000 x 160/3200 = 9500
we add them to their cost and then do the same for Janitorial.
9200+ 800 = 10,000
90781.25 x 9200/10000 = 83518.75
90781.25 x 800/10000 = 7262.5
giving the total cost of the operating departments.