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Tatiana [17]
3 years ago
9

We have acquired new furniture for the office. The invoice for $6,000 offers two ways to pay: we can pay the entire amount by Se

ptember 1, or we can pay $3,060 by September 1 and $3,000 by January 1. How does our decision depend on the interest rate at which we can invest our funds
Business
1 answer:
Drupady [299]3 years ago
5 0

Answer:

6.12%

Explanation:

Calculation for How does our decision depend on the interest rate at which we can invest our funds

Present value = 6000-3060

Present value = 2940

Future value = Present value+Present Value*Numver of month* Rate of interest/ 100

3000 = 2940+2940*4/12*R/100

60 = 2940*4/12*R/100

60*12/4 = 2940*R/100

180 = 2940*R/100

180/2940 = R/100

0.061224 = R/100

Rate = 6.1224

Therefore How does our decision depend on the interest rate at which we can invest our funds is 6.1224

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MC Qu. 74 If a firm's forecasted sales are... If a firm's forecasted sales are $238,000 and its break-even sales are $184,000, t
KonstantinChe [14]

Answer:

22.69%

Explanation:

Margin of safety = (forecasted sales -  break-even sales) / forecasted sales

( $238,000 - $184,000) / $238,000 x 1000 = 22.69%

3 0
2 years ago
Cahalane Corporation has provided the following data for its two most recent years of operation: Selling price per unit $ 91 Man
ankoles [38]

Answer:

A. The amount of fixed overhead deferred in inventories is $60,000

Explanation:

Unit product cost      

                                            Year 1      Year 2  

Direct materials                      $12         $12

Direct labor                              $5        $5  

Variable manufacturing

overhead                                     $5      $5  

Fixed overhead

                                                   $48      $36  

                           ($432,000 ÷ 9,000)   ($432,000 ÷ 12,000)

unit product cost                       $70      $58

Fixed overhead deferred (1,000 × $48)   $48,000  

Fixed overhead released                                             -$48000  

Fixed overhead deferred (3000 × $36)                        $108,000  

Net                                                             $48,000        $60,000

The amount of fixed overhead deferred in inventories is $60,000

8 0
3 years ago
During January, its first month of operations, Knox Company accumulated the following manufacturing costs: raw materials $5, 310
mariarad [96]

Answer:

See the attached picture for detailed answer.

Explanation:

See the attached picture for explanation.

7 0
3 years ago
Suppose Yamahonda, a Japanese-owned motorcycle manufacturer, builds a production plant in Alabama. This is an example of foreign
Alika [10]

Answer:

The statement is true, as it is an example of foreign direct investment.

Explanation:

Foreign direct investment is the direct investment by individuals or legal persons in production or business operations abroad. In this context, investments include both acquisition of foreign operations and expansion of own operations.  

Foreign direct investment does not include the purchase of either shares or bonds per se. More specifically, the IMF has restricted direct investment on acquisitions to cases where the foreign investor owns 10% or more of the shares that give administrative rights in the business. Investment funds that can be classified as foreign direct investments therefore include equity deposits, reinvestments of dividends from the business, as well as the allocation of short-term and long-term loans between parent companies and subsidiaries.  

3 0
2 years ago
The net present value (NPV) method estimates how much a potential project will contribute to
Alex777 [14]

This answer requires that we fill in the blanks. The answers are contained in the bullet to fill the missing places

  • shareholder wealth
  • larger the NPV
  • higher stock price.
  • WACC
  • accept the project.
  • higher positive NPV.

<h3>What is the NPV?</h3>

This is the term that is used to refer to the net present value. This is the value that is calculated as the difference between the cash inflows and out flows for over a time period.

In order to get the NPV we have to make the following calculations for the projects A and B.

We have:

<u>For Project A</u>

-900 + 620/1.08 + 395/1.08² + 200/1.08³ + 250/1.08⁴

= $355. 237

<u> project B</u>

we would have

-900 + 620/1.08 + 395/1.08² + 200/1.08³ + 250/1.08⁴

= 378.98

The value for the project B happens to be greater than that of A hence this is the value that we have to accept

Read more on NPV here:

brainly.com/question/17185385

#SPJ1

4 0
2 years ago
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