Answer:
1) In general, is it a good idea to make only minimum payments on your credit cards?
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No, the small payment requirement is mathematically guaranteed to keep you in debt for many years.
All you have to do is analyze the interest rates charged by the credit card companies and it is really difficult for any investment to match those interest rates.
2) Assuming you have $1,500 in your budget this month with which to pay down your credit cards, how much should you pay on each card?
I would start with the cards that charge the highest interest rates. I would pay the full balance of the department store card and the gasoline card = $600 + $300 = $900
Since I have $600 left, I would then pay the minimum payments for the cards that charge the least interest rates. I would pay $40 to Discover card and $60 to VISA.
The remaining $500 would be used to pay MasterCard 1 card and lower its balance.
Answer:
The answer is 30%
Explanation:
Solution
Given that:
Project A
Project A costs = $350
Cash flows =$250 and $250 (next 2 years)
Project B
Project B costs =$300
Cash flow = $300 and $100
Now what is the crossover rate for these projects.
Thus
Year Project A Project B A-B B-A
0 -350 -300 -50 50
1 250 300 -50 50
2 250 100 150 -150
IRR 27% 26% 30% 30%
So,
CF = CF1/(1+r)^1 + CF2/(1+r)^2
$-50 = $-50/(1+r)^1 + $150/(1+r)^2
r = 30%
CF = CF1/(1+r)^1 + CF2/(1+r)^2
$50 = $50/(1+r)^1 + $-150/(1+r)^2
r = 30%
Hence, the cross over rate for these project is 30%
Note:
IRR =Internal rate of return
CF =Cash flow
r = rate
Answer:
$2.50
Explanation:
The Earnings Per Share of a company is determined by using the formula:
EPS= (Net Income of the Company - Dividend to Preferred Shareholders) ÷ Average Outstanding Shares of the Company
Since there is no dividend to preferred shareholders
EPS= Net Income of the Company - ÷ Average Outstanding Shares of the Company
=30000 ÷ 12000
=$2.50
Answer:
Head Office Cost Allocations
Explanation:
Usually Projects have Head Office costs that are allocated to them.
Head office costs allocated to projects will be the same for the choices of alternatives (replacing or not replacing the machine).
The Head office costs are a costs that is incurred at Head office as well.
Thus, Head Office Costs allocations are <em>irrelevant</em> and must not be included in the analysis.
Answer:
$ 50144
Explanation:
Given:
Cost formula for the the wages and salaries = $ 2420 / month + $ 388 / birth
planned number of activity = 119 births
Actual level of activity = 123 births
the wages and salaries in the flexible budget for January, using the given formula will be calculated as:
the wages and salaries = ( $ 2420 × 1 ) + ( $ 388 × 123) = $ 50144
