Answer: A. incorrect because part of each payment is to principal and to interest. Therefore, only a portion of the payment goes to interest, so the full amount should not be included when computing the rate of interest paid.
Explanation:
When paying back a loan, there are two components to the periodic interest payment. The first component is the interest payment. This is the payment to compensate the borrower for loaning out the money and is based on the interest rate and the principal left to be repaid.
The second component goes towards repaying the principal of the loan which in this case is $10,000. When computing the periodic interest rate therefore, the entire amount paid per period should not be used as it would inflate the interest rate.
Answer:
None of the above
Explanation:
A sensitivity analysis measures how under a certain set of assumptions, different values of an independent variable influence the dependent variable. It is also known as what if analysis and it is based on various assumptions. Options given in the question like changes in depreciation tax shield over a project's life, changes in production levels with the changes in revenue etc. are absolutely certain to an extent, or in other words, bound to happen.
Answer:
Correct option is B.
$278,000
Explanation:
Common Fixed Expenses = Office Administrative Assistant + Office Administrative Assistant + President's Salary
Common Fixed Expenses = $61,750 + $46,750 + $169,500
Common Fixed Expenses = $278,000
Answer:
D they both will increase
Explanation:
Goodluck on that.
It is indicating that an account balance decreased as a result of a reason other than a cash withdrawal or cashed check
