(Money matters)

Suppose a construction company enters into a contract to build a warehouse for the hypothetical Vincent Corporation with a contr

Romashka [77]

Answer:

$300,000

Explanation:

A contract is formed between different parties when there is an offer and acceptance of terms in performance of a job.

In construction contracts where a construction company enters a contract to build a warehouse for Vincent Corporation. The amount they will lost profits depends on which party is breaching the contract and at which project stage it happens.

In this case the contract was breached by the owner before project began. Damages/lost profits are project price less project cost.

Lost profit= 700,000 - 400,000= $300,000

7 0

3 years ago

David borrows $230,000 to buy a house. The mortgage rate is 4.5 percent and the loan period is 25 years. Payments are made month

tiny-mole [99]

Answer:

EMI

Loan Amount 230000

Interest rate per period 0.00375

Number of periods 300

EMI = [P x R x (1+R)^N]/[(1+R)^N-1]

Where,

EMI= Equal Monthly Payment

P= Loan Amount

R= Interest rate per period

N= Number of periods

= [ $230000x0.004 x (1+0.004)^300]/[(1+0.004)^300 -1]

= [ $862.5( 1.004 )^300] / [(1.004 )^300 -1

=$1278.4147

Total payment = $1278.4147*300

=$383524.41

Interest payment = total payment - laon amount

=$383524.41-230000

Interest payment =$1,53,524.41

Explanation:

3 0

2 years ago

Suppose Congress passes legislation that offers subsidies to orange farmers. The impact on the market for orange juice will be a

Dmitrij [34]

Answer:

<u>the supply curve</u>

Explanation:

Remember the supply curve shows the relationship between the amount of a commodity that a producer (or orange farmer) is <em>willing </em>to offer and at a particular price at any given time.

Because of the subsidies to orange farmers we expect the price of orange to become lesser in the future. Therefore the rightward shift occurs in supply curve for oranges due to favorable changes such as the new legislation which may lead to:

Reduction in tax,
Reduction in cost of factor of production,
Expectation of fall in price in future,

3 0

3 years ago

To estimate the value of a nonconstant growth stock, we can estimate the value of each dividend during the period of nonconstant

garri49 [273]

Answer:

The correct answer is True.

Explanation:

The Gordon growth model is a method of valuing a company's share price, using constant growth and discounting the value of future dividends today. Gordon Growth is often known by its English name.

It is a dividend discount model that assumes that the growths that the company will experience are constant. It is based on the theory that the price of a share should be equal to the price of the dividends that the company is going to pay, discounted to its net present value.

If the share price in the market is less than the result obtained by the discounted dividend model, the share is undervalued and therefore, it is recommended to buy. If, on the other hand, the market price is higher than that of the model, it is understood that the share price is too high.

3 0

3 years ago

How much would you have to deposit today if you wanted to have $54,000 in five years? Annual interest rate is 8%. (PV of $1. FV

mestny [16]

Answer:

Instructions are listed below.

Explanation:

Giving the following information:

A) How much would you have to deposit today if you wanted to have $54,000 in five years? The annual interest rate is 8%.

We need to use the following formula:

PV= FV/(1+i)^n

PV= 54,000/(1.08^5)= $36,751.49

B) Assume that you are saving up for a trip around the world when you graduate in two years. If you can earn 7% on your investments, how much would you have to deposit today to have $14,500 when you graduate?

PV= 14,500/1.07^2= $12,664.86

C) Calculate the future value of an investment of $643 for eleven years earning an interest of 8%.

FV= PV*(1+i)^n

FV= 643*1.08^11= $1,499.24

D) Would you rather have $643 now or $1,000 eleven years from now?

It depends on the interest rate. We will assume 8%.

PV= 1000/1.08^11= 428.88

It is better to have $643 today.

5 0

3 years ago