All categories

2 years ago

Four fundamental factors affect the cost of money:

Business

1 answer:

Elanso [62]2 years ago

7 0

Answer:

True statement is:

All thing being equal, savers and investors prefer more risk to less risk and prefer lower risk premiums on projects exhibiting higher levels of risk.

Explanation:

Investors wish to receive less risk and more return. They prefer from more risk to lesser risk and receive risk premium on project that exhibit higher level of risk and delayed compensation. A project with 12% return will be more riskier than a project with 8% return. Rate of return increases as the level of risk increases.

You might be interested in

Planned investment spending is _____ the interest rate because fewer projects are profitable at higher interest rates. greater t

Lapatulllka [165]

The relationship between planned investment and interest rates is that investment spending is inversely related to interest rates.

<h3>How are investment spending and interest rates related?</h3>

Investment spending depends on being able to take loans from financial institutions to sponsor capital projects.

If interests rate are high, there will be less planned investments because the cost of taking a loan will be high. The relationship is there inverse in nature.

Find out more on interest rates at brainly.com/question/26540958.

5 0

2 years ago

Clay Corporation manufactures two styles of lampslong dasha Bedford Lamp and a Lowell Lamp. The following per unit data are ava

mote1985 [20]

Answer:

$ 10

Explanation:

Given:

For Bedford lamp

Sales price = $ 26

Variable cost = $ 16

Machine hours required per unit = 1

Now,

the contribution margin per unit = Sales price - Variable cost

= $ 26 - $ 16

= $ 10

therefore,

the contribution margin per machine hour is calculated as:

= contribution margin / machine hours

= $ 10 / 1

= $ 10

hence,

the contribution margin per machine hour for the bedford lamp is $ 10

4 0

3 years ago

Mercury Inc. purchased equipment in 2019 at a cost of $497,000. The equipment was expected to produce 580,000 units over the nex

Ivan

Answer:

Gain or (Loss) on sale = (17000) Loss

Cash 253600 Dr

Accumulated Depreciation 226400 Dr

Loss on Sale 17000 Dr

Equipment 497000 Cr

Gain or (Loss) on sale = 9400 Gain

Cash 280000 Dr

Accumulated Depreciation 226400 Dr

Gain on Sale 9400 Cr

Equipment 497000 Cr

Explanation:

We first need to calculate the carrying value of the equipment at the date of disposal. The carrying value is calculated as follows,

Carrying value = Cost - Accumulated depreciation

Depreciation 2019 = (497000 - 33000) * 83000 / 580000

Depreciation 2019 = 66400

Depreciation 2020 = (497000 - 33000) * 133000 / 580000

Depreciation 2020 = 106400

Depreciation 2021 = (497000 - 33000) * 67000 / 580000

Depreciation 2021 = 53600

Carrying value = 497000 - [ 66400 + 106400 + 53600 ]

Carrying value = $270600

Gain or (Loss) on sale = Sales price - Carrying Value

Gain or (Loss) on sale = 253600 - 270600

Gain or (Loss) on sale = (17000) Loss

Cash 253600 Dr

Accumulated Depreciation 226400 Dr

Loss on Sale 17000 Dr

Equipment 497000 Cr

Gain or (Loss) on sale = Sales price - Carrying Value

Gain or (Loss) on sale = 280000 - 270600

Gain or (Loss) on sale = 9400 Gain

Cash 280000 Dr

Accumulated Depreciation 226400 Dr

Gain on Sale 9400 Cr

Equipment 497000 Cr

6 0

3 years ago

scoundrel [369]

Answer:

$85

Explanation:

Calculation for what the inventory of surgical supplies would be valued at

Net realizable value = $100 - $15

Net realizable value = $85

Therefore based on the above calculation the inventory of surgical supplies would be valued at $85

8 0

2 years ago

AnaCarolina and Jaco work at Duke Manufacturing, and they are tasked with determining appropriate performance metrics for the in

Crazy boy [7]

Answer:

b. operating throughput

Explanation:

Based on the information provided within the question it can be said that the best metric would be operating throughput. This is because the balance scorecard needs to keep track of the execution of activities done by the employees, therefore using the data of operating throughput would allow Duke to accurately measure how well the employees are performing based on how much product they have created.

5 0

3 years ago