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Julli [10]
3 years ago
13

Mary O. Andrettey wants to purchase an expensive sports car. She needs to borrow money to purchase the car, and has loan proposa

ls from three different sources. The cash flows for each proposal are:
Business
1 answer:
irina [24]3 years ago
6 0

Answer: Proposal C

Explanation:

The way to solve this is to calculate the Present Values of all these payments. The smallest present value is the best.

Proposal A.

Periodic payment of $2,000 makes this an annuity.

Present value of Annuity = Annuity * ( 1 - ( 1 + r ) ^ -n)/r

= 2,000 * (1 - (1 + 0.5%)⁻⁶⁰) / 0.5%

= $103,451.12

Proposal B

Present value = Down payment + present value of annuity

= 10,000 + [2,200 * ( 1 - ( 1 + 0.5%)⁻⁴⁸) / 0.5%]

= 10,000 + 93,676.70

= $103,676.70

Proposal C

Present value = Present value of annuity + Present value of future payment

= [500 * (1 - (1 + 0.5%)⁻³⁶) / 0.5%] + [116,000 / (1 + 0.5%)⁶⁰]

= 16,435.51 + 85,999.17

= $‭102,434.68‬

<em>Proposal C has the lowest present value and so is best. </em>

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their major products, the plastic container. Budgeted quantity Budgeted price Direct materials 0.25 pounds $30 per pound Direct
pshichka [43]

Answer:

Total Material cost variance  $5,600  favorable

Explanation:

<em>The direct matriculate total variance is he difference between the standard material cost for the actual output achieved and the actual material cost of the same output</em>

Standard materiel cost per unit = 0.25 × $30 = $7.5  per unit

                                                                                                  $

5,000 units should have cost (5000×  $7.5) =                    37,500

but did cost  (actual cost        1,000 × $29                          <u> 31,900 </u>

Total Material cost variance                                           <u>       5600</u>  favorable

3 0
3 years ago
The amortization of a premium on bonds payable: A) has no effect on the cash payments for interest reported in the operating act
Aleks [24]

Answer:

A) has no effect on the cash payments for interest reported in the operating activities section of the statement of cash flows

Explanation:

The amortization is an accounting method to match the difference in the nominal interest rate of bonds with the real interest rate the bond is yielding.

Th cash flow statment will just recognize the cash proceeds, which are calculate base on the face value, regardless of the premium or discount in the bond.

6 0
3 years ago
Identify the three components of retained earnings.
Hoochie [10]
The beginning period retained earnings, net profit/net loss made during the accounting period, and cash and stock dividends paid during the accounting period. (i may be wrong because there was no picture but i this is right)
5 0
2 years ago
Ralph, a regional sales manager, was asked to analyze whether his company should launch a marketing effort to become Right Foods
podryga [215]

Answer:

Switching cost

Explanation:

Switching cost is defined as the cost that is incurred in the course of changing from one supplier to another.Switching cost can be in monetary terms like compensation and termination fees and also in non monetary terms like time , effort and psychological stress.

In the given scenario , the defined activities of Right foods and the intention of Ralph clearly point out the process of potential switch of suppliers , even as the potential switching cost of $0.5 million for termination and $100,000 for replacing of software and retraining of staff are apparent.

4 0
2 years ago
mac, an nasm-cpt, has been working as a personal trainer at a health club for almost 3 years. he has consistently received posit
adell [148]

An opportunity which would be the most appropriate to pursue, given Mac's experience is a fitness manager.

<h3>What is NASM-CPT?</h3>

NASM-CPT is an abbreviation for National Academy of Sports Medicine Certified Personal Trainer and it can be defined as a title which is used to describe a physical fitness expert who is saddled with the responsibility of designing physical fitness exercises and conditioning programs that are based on clinical evidence and scientifically valid.

Also, NASM-CPT provide this guidance in order to help clients successfully achieve their personal health, fitness and performance goals by implementing the recommended physical fitness exercise programs while adopting suggested lifestyle modifications.

In this context, we can reasonably infer and logically deduce that an opportunity which would be the most appropriate to pursue, given Mac's experience is a fitness manager.

Read more on NASM-CPT here: brainly.com/question/28132531

#SPJ1

6 0
2 years ago
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