C. A Novation
In contract law, a novation is the cancellation of one contract and replacing it with another contract.
Answer:
The present value, when interest rates are 8.0 percent, of a $160 payment made every year forever is $2,000.
Explanation:
Payments each year = Cash flow = C = $160
Rate of Interest = r = 8% = 0.08
Present value of Perpetuity = Cash flow / rate of return
Present value of Perpetuity = C / r
Present value of Perpetuity = $160 / 0.08
Present value of Perpetuity = $2,000
So, the present value, when interest rates are 8.0 percent, of a $160 payment made every year forever is $2,000.
Answer:
A. $1,600
Explanation:
Ningbo Steel
Income Statement
Sales Revenue $11,000
Less Cost of goods sold <u>$5,000
</u>
Gross Profit $6,000
Less Operating Expense <u>$3,000
</u>
Earning Before Interest and Taxes $3,000
Less Interest Expense <u>$1,000</u>
Earning before Tax $2,000
Less Tax Expenses (2,000 *20%) <u>$400</u>
Net Profit after tax <u>$1,600</u>
Answer:The price will also increase
Explanation:According to the law of demand and supply, demand has a positive relationship with price, which means the higher the demand, the higher the price of the same commodity
Answer:The correct answer is a). $9,918.50
Explanation: In selling, the investor will use the bid price of $4.89 alongside the face value of the bill.
That is to say, the face value * (1-(bid price * no. of days)/days in a year) = 10000 * (1-(0.0489*60)/360) = $9,918.50
