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3 years ago

A temporary 0% APR is a good way to attract new credit card customers. This type of APR is known as:

Business

1 answer:

beks73 [17]3 years ago

8 0

Answer:

d) Introductory rate

Explanation:

APR, or annual percentage rate, is the interest rate applied when using a credit card. A credit card company may introduce offers to boost the uptake of credit cards.

One way to increase uptake is through the 0% APR introductory offer. A temporal 0% APR means no interest will be charged for the use of the credit card for a time as determined by the credit card company. To take advantage of this offer, a customer must pay the minimum payments due on the statement.

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A firm purchased $120,000 worth of light general-purpose trucks. The operations of the trucks lead to annual income of $60,000 f

Setler [38]

The before-tax IRR is 37.93%

The after-tax IRR is 19.32%

The internal rate of return (IRR) is defined as the return rate on a project investment project over a periodic lifespan.

It is also referred to as the net present value of an investment project which is zero. It can be expressed by using the formula:

$\mathbf{0= NPV \sum \limits ^{T}_{t=1} \dfrac{C_t}{(1+1RR)^t}- C_o}$

where;

$\mathbf{C_t}$ = net cash inflow for a time period (t)
$\mathbf{C_o=}$ Total initial investment cost

For the before-tax IRR:

The cash outflow = $120000

Cash Inflow for the first three years = $60000

Cash inflow for the fourth year = $60000 + $20000 = $80000

∴

Using the above formula, we have:

$\mathbf{0 = \dfrac{60000}{(1+r)^1}+ \dfrac{60000}{(1+r)^2}+ \dfrac{60000}{(1+r)^3}+ \dfrac{80000}{(1+r)^4}}$

By solving the above equation:

r = 37.93%

For the after-tax IRR:

The cash outflow = $120000

Recall that:

Cash Inflow = Cash inflow × Tax rate

∴

For the first three years; the cash inflow is:

$\mathbf{=60000 -(60000\times 0.3) } \\ \\ \mathbf{ = 60000 -18000} \\ \\ \mathbf{ = 42000}$

For the fourth year, the cash inflow is

$\mathbf{=80000 -(60000\times 0.3) } \\ \\ \mathbf{ = 80000 -18000} \\ \\ \mathbf{ = 62000}$

Using the above IRR formula:

$\mathbf{0 = \dfrac{42000}{(1+r)^1}+ \dfrac{42000}{(1+r)^2}+ \dfrac{42000}{(1+r)^3}+ \dfrac{62000}{(1+r)^4}}$

By solving the above equation:

r = 19.32%

Learn more about the internal rate of return (IRR) here:

brainly.com/question/24301559

5 0

2 years ago

Prepare the current assets section of the balance sheet for Buffalo Industries, assuming that in addition to the receivables it

Sav [38]

Answer:

Explanation: current assets are assets other than fixed asset that a company uses in its day to day operations and are noted in the Balanced sheet of an organisation and they include:

Cash, Account receivable, Inventory, Supplies.

From the above question, the current asset of Buffalo Industries is stated below:

Balanced Sheet (extract)

Current assets :

Cash $97,340

Merchandise inventory $167,950

Supplies. $12,560

Total current asset. $277,850

3 0

4 years ago

Select the correct answer.<br> A teacher is an example of a social type.<br> A. True<br> B. False

Salsk061 [2.6K]

Answer:

I am thinking about option'A' I.e yes.

Hope it helps you..

7 0

3 years ago

Which of the following are often pieces of evidence against a bait-and-switch scam?

emmasim [6.3K]

The answer choice which represents a bait-and-switch scam is Choice B; Mike decides to complain to the Better Business Bureau after a store advertises “everything in this store is $5 or less” but discovers the store charges a $2 fee for credit card purchases under $66.

<h3>Which is an evidence against a bait-and-switch scam?</h3>

Bait and switch is a morally suspect sales tactic that lures customers in with specific claims about the quality or low prices on items that turn out to be unavailable in order to upsell them on a similar, pricier item. It is simply considered a form of retail sales fraud, though it takes place in other contexts.