Interest on the loan and homeowner's insurance and property taxes
Answer:
Explanation:
Adjusted face value = 10000*(1+2.5%)^(3*2)
= 11596.93
Final payment = Coupon + adjusted principal
= 11596.93*4.25%/2 +11596.93
= $ 11843.36
Answer:
The sunk cost is the old broken machine
Explanation:
Giving the following information:
Model 370 machine costing $459,000
Model 240 machine costing $415,000
A machine was purchased 4 years ago for $423,000.
Management decided to buy the model 240.
A sunk cost is a cost that has previously been incurred and cannot be recovered. In this exercise, the sunk cost is the old broken machine. No matter what decision management makes, the machine is broken and can't be repaired or sold.
A) you own a home
Hope this helped!
Answer : The risk reward ratio for Cornhusker Enterprises is 0.75, while that for Mustang Associates is 0.90.
Since the risk-reward ratio for Mustang Associates is higher, it's risk-reward ratio is worse.
In this question, we first need to calculate the risk-return ratio for both the stocks.
The risk-reward ratio express risk (standard deviation) per unit of expected return (mean).
We can calculate the risk-reward ratio (coefficient of variation) by using the following formula:
where
σ = Standard deviation
μ = Expected Return on a security.
<u>Cornhusker Enterprises:</u>
<u>Mustang Associates:</u>