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3 years ago

A cost center does not directly generate revenues. a. True b. False

1 answer:

5 0

True. A cost center does not directly generate revenue.

A cost center does incur cost, though it does not generate revenue on its own. These accounts are charged for accounting purposes to different parts of the organization even though individually, they aren't making money for the organization.

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In 2008, as a financial crisis began to unfold in the United States, the FDIC raised the limit on insured losses to bank depos

Tomtit [17]

The FDIC stands for Federal Deposit Insurance Company.

By raising the limit on insured losses the FDIC helps stabilize the system by instilling confidence.

If the consumer knows that their savings accounts are protected up to $250,000 they will be encouraged to spend money during a time of crisis.

Because of the increased limit, there is less probability that there would be something called

"a run on the bank."

8 0

3 years ago

A high-interest savings account pays 5. 5% interest compounded annually. If $300 is deposited initially and again at the first o

Arte-miy333 [17]

For the given question, the summation that represents the money in account is:

$\begin{aligned}\sum_{10}^{n=1}316.5(1.055)^{n-1} \end{aligned}$

The principal amount if compounded annually, the formula that represents the amount to be received after n years is:

$\rm A = P(1 + \dfrac{r}{100})^t$ where A is the amount received after compounding, P is the principal, r is the rate of interest and t is the tenure.

<h3>Solution:</h3>

Given:

Annual interest rate(r) is 5.5%

Principal is(P) $300

Tenure is(t) 10 years

On substituting the values in the formula $\rm A = P(1 + \dfrac{r}{100})^t$

The amount received after compounding at the end of 1 year will be:

$\rm A = 300(1 + \dfrac{5.5}{100})^1\\
\\
A=300(1.055)\\
\\
A=\$316.5$

Similarly, the amount to be received after 2 years will be:

$316.5+316.5(1.055)$

The amount received after 10 years will be:

$316.5+316.5(1.055)+316.5(1.055)^2+.......$ upto 10 years

Therefore the summation that represents the money in account after 10 years is:

$\begin{aligned}\sum_{10}^{n=1}316.5(1.055)^{n-1} \end{aligned}$

Learn more about compound interest here:

brainly.com/question/25857212

5 0

2 years ago

(Consider This) If the law of diminishing returns applies to study time:

erma4kov [3.2K]

Answer:

A. the 10thhour of study will likely be less productive than the 3rd.

Explanation:

The law of diminishing returns is a point at which the level of benefits or apprehensions gained is less than the amount of energy or time that is invested.

So at the tenth hour, this law would be setting in, and the effectiveness of each additional unit of time decreases. So this hour will be less productive than the third hour.

7 0

3 years ago

Hindelang Inc. is considering a project that has the following cash flow and WACC data. What is the project's MIRR? Note that a

lubasha [3.4K]

Answer:

MIRR = 16.6%

Explanation:

We have the formula to calculate the MIRR of the project:

+) $MIRR =\sqrt[n]{\frac{FV}{PV} } - 1$

In which:

FV - terminal value, the future value of net cash inflow which is assumed to be re-invested at the rate of cost of capital = WACC = 12.25%
PV - the present value of the net cash outflows during the investment at the rate of cost of capital = WACC
n: numbers of years (n=4)

The future value of net cash inflow Year i = Cash inflow × (1 + Cost of capital)^(number of years reinvested)

= Cash inflow × 1.1225^(n - i)

+) $FV1 = 300 * 1.1225^{3}$ = $424.327

+) $FV2 = 320 * 1.1225^{2}$ = $403.202

+) $FV3 = 340 * 1.1225^{1}$ = $381.65

+) $FV4 = 360 * 1.1225^{0}$ = $360

<em>=> Terminal Value = 424.327 + 403.202 + 381.65 + 360 = $1569.179</em>

<em />

Present Value Year i = $\frac{Cash flow}{(1+WACC)^{i} } = \frac{Cash flow}{1.1225^{i} }$

The project requires the initial investment = - $850 and there are no cash outflows during 4 years of the project

<em>=> PV of the project = PV Year 0 = </em> $\frac{850}{1.1225^{0} }$ <em> = 850</em>

=> MIRR = $\sqrt[4]{\frac{1569.179}{850}} - 1$ = 0.166 = 16.6%

6 0

3 years ago

The three types of buying situations are theoretical and have little relation to what happens in the real world. call for differ

marshall27 [118]

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7 0

3 years ago