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nikklg [1K]
3 years ago
7

Winston Enterprises would like to buy some additional land and build a new factory. The anticipated total cost is $175.86 millio

n. The owner of the firm is quite conservative and will only do this when the company has sufficient funds to pay cash for the entire expansion project. Management has decided to save $670,000 a month for this purpose. The firm earns 6 percent compounded monthly on the funds it saves. How long does the company have to wait before expanding its operations
Business
1 answer:
Degger [83]3 years ago
7 0

Answer:

the time period is 168.07 months

Explanation:

The computation of the time period is shown below:

Given that

RATE = 6% ÷ 12 = 0.5%

PMT = $670,000

FV = $175,860,000

PV = $0

The formula is shown below:

= NPER(RATE;PMT;-PV;FV;TYPE)

After applying the above formula, the time period is 168.07 months

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A corporation issued $580000, 10%, 5-year bonds on January 1, 2020 for $626400, which reflects an effective-interest rate of 7%.
ioda

Answer:

The correct answer is option (B).

Explanation:

According to the scenario, the given data are as follows:

For Jan.1,2020 value = $626,400

Interest rate = 7%

So, we can calculate the amount of bond interest expense by using following formula:

Interest Expense = Carrying Value × Market Interest Rate

By putting the value of following

Interest expense = $626,400 × 7%

= $626,400 × 0.07

= $43,838

Hence, the amount of bond interest expense to be recognized on December 31, 2020, is $43,838.

7 0
3 years ago
Fuzzy​ logic, expert​ systems, and​ case-based reasoning are all​ _______ used with decision making.
Maslowich
The things that describes above is that they are all intelligent techniques. These are used in dealing with decision making. In order for the person to know how to deal with the situations and how to cope up by applying the following characteristics in situations.
8 0
3 years ago
On January 1, 20X1, the Moody Company entered into a transaction for 100% of the outstanding common stock of Osorio Company. To
Paha777 [63]

Answer:

B. $1,760

Explanation:

Given that:

Liabilities = $400, shares = 40 shares, par value = $1 per share, undervalued building asset = $60, net building amount = $1260

amount of consolidated buildings (net) at date of acquisition = net amount for buildings + amount of undervalued building asset + $400 + ($1.00 x 40 shares)  

amount of consolidated buildings (net) at date of acquisition = $1260 + $60 + $400 + $40 = $1760

3 0
3 years ago
Which of the following statements is CORRECT? a. The present value of a 3-year, $150 annuity due will exceed the present value o
lorasvet [3.4K]

Answer:

Statement a. is correct.

Explanation:

The effective annual rate is always higher than the nominal interest rate, as the formula is clear for any number of periods, for any interest rate:

Effective Annual Rate of return = (1 + \frac{i}{n})^n - 1

Further if we calculate the present value of annuity due and ordinary annuity assuming 6 % interest rate, then:

Present value of annuity due =

(1 + 0.06) \times 150 \times (\frac{1 - \frac{1}{(1 + 0.06)^3} }{0.06} )

= 1.06 \times $400.95

= $425.0089

Present value of ordinary annuity = 150 \times (\frac{1 - \frac{1}{(1 + 0.06)^3} }{0.06} )

= $150 \times 2.6730

= $400.95

Therefore, value of annuity due is more than value of ordinary annuity.

Statement a. is correct.

5 0
3 years ago
"Keeping track of securities owners for payment of interest or dividends is usually done by the company's"1. Treasure2. Broker3.
Vilka [71]

Answer:

The correct answer is 3

Explanation:

Transfer agent is the one who plays an important or vital role among the investor and the registrar of the company or business. They are those who closely maintain the account balances of the investor and make sure that the shareholders receive the dividends payment in the timely way.

So, the transfer agents of the company, keep or maintain the track of the securities owners for the payment of dividends or interest.

8 0
3 years ago
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