Answer and Explanation:
An investment when it would be risk free in that case both the principal and the interest amount are to be paid within the prescribed time. Also when the U.S government bonds i.e. long term would be issued by the government have a lesser interest rate as compared with the other riskier securities available at the market place this is because as the government would default next to zero in case of the short term it would make the default when there are extreme situations arise.
Therefore in the short term it would be risk free
But in the long run, the person is based on the treasury bills returns so that he or she could equate the similar standard of living also it would not suffice when the inflation rises
Therefore the less risky investment would be of Government bonds
Answer:
a) $1080
b)$19080
c) Loan given | -$18000
d)$540
e)$19620
f)loan | 18000
Interest received | $1620
g) $1620
Explanation:
a) Year 1 : a) Interest income = $18000*9%*8/12 = $1080
b) The total receivable at december 31,Year = 18000+1080 = $19080
c) Year 1 :Statement of cash flow
Loan given | -$18000
d) Interest income Year 2 = $18000*9%*4/12 = $540
e) Total cash collect in 2017 = $18000+$1080 + $540 = $19620
f) Cash flow from investing activities :
loan | 18000
Interest received | $1620
g)Total interest earned = 18000*9% = $1620
Answer:
1. $50 and 40%
2. 177 units and $22,125
3. 473 units and 72.77%
Explanation:
Price = $125
Variable cost = $75
Fixed cost =$8,850
Contribution margin is the net of sales price and variable cost of the product. It is the cost available to recover the fixed cost and make profit afterward.
1. Contribution margin = Sales price - Variable cost = $125 - $75 = $50
Contribution margin ratio = Contribution margin / Sale price = $50 / $125 = 40%
Break-even is the level of sales at which business has no profit no loss situation.
2. Break-even point = Fixed cost / Contribution margin per unit = $8,850 / $50 = 177 units
Break-even in $ = 177 units x $125 = $22,125
Margin of safety is the level of sales at which the business is safe from making loss. Margin of safety measures the profit after the break-even point.
3. Margin of Safety = Total sales - Break-even point = 650 units - 177 units = 473 units
Margin of safety to sales = ( Margin of safety / Total sales ) = ( 473 units / 650 units ) x 100 = 72.77%
Luna realized that the undecided group was her target audience so she focused most of her effort on them.
<u>Explanation:
</u>
A targeted audience is a publication, advertising or other text.
It is a particular group of consumers in the standard target market of marketing and advertising, known as targets or recipients of a specific ad or email.
In the end, it all includes assessing relevance for a target audience profile. You will attract a customer more often if your services and the goods you deliver suit what your audience wants.
If your customer you want is "everybody," it's very difficult for you to communicate in a deeper way with anyone. The more connected you are to others; the more likely you are to be a protector and a loyal user of your company.
Question:
Graded assignment(towards 15% Hw grade) Saved Help Save& Exit Submit Check my work Your landscaping company can lease a truck for $7,800 a year (paid at year-end) for 6 years. It can instead buy the truck for $38,000. The truck will be valueless after 6 years. The interest rate your company can earn on its funds is 7%. 10 points
What is the present value of the cost of leasing?
Answer:
Cost of lease = $37,179.01
Explanation:
Leasing is a finance arrangement where one party (the lessor) transfers the right to use an asset to another party (the leasse) in exchange for a rent.
The cost of a lease to the leasee is the present value of the future lease payment discounted at the cost of capital.
So using the present value of annuity formula, we can work out the cost of the lease arrangement as follow:
PV =A× (1- 1+r)^(-n)/r
PV- Present Value
r- interest rate
n- number of years
A- annual lease payment
PV -
A-7,800
r-7%
n-6
PV = 7,800× (1- (1.07)^(-6)/0.07 = 37,179.01
Present Value = $37,179.01
Cost of lease = $37,179.01
