Carlos is planning a trip to Japan. He needs to convert U.S. dollars to

A person takes out a car loan at a bank, but actually uses the money to play the lottery. This situation is an example of which

Kruka [31]

Answer:

b.moral hazard

Explanation:

If a person borrow from bank to buy car but actually he borrow to pay lottery. in this case the person will face Moral Hazards.

8 0

3 years ago

Beyer Company is considering the purchase of an asset for $215,000. It is expected to produce the following net cash flows. The

wlad13 [49]

Answer:

a) Net Present Value = $ 304,495.12

b) Beyer should accept the investment.

Explanation:

The net present value NPV) of a project is the present value of cash inflow less the present value of cash outflow of the project.

NPV = PV of cash inflow - PV of cash outflow

Year PV

1 77,000 × 1.12^(-1) = 68,750.00

2 54,000 × 1.12^(-2) = 43,048.47

3 82,000 × 1.12^(-3) = 58,365.98

4 172,000 × 1.12^(-4) = 109,309.11

5 423,000 × 1.12^(-5)= 240,021.56

Total Present Value 519,495.12

Initial cost (215,000)

Net Present Value 304,495.12

Net Present Value = $ 304,495.12

b) Decision :

Beyer should accept the investment. This will increase the wealth of the shareholders by $ 304,495.12

8 0

3 years ago

Big Tommy Corporation is a local grocery store organized seven years ago as a corporation. The bookkeeper prepared the following

Natali [406]

Answer:

Big Tommy Corporation

Profit and Loss for the year ended December 31

Sales 404,000

Cost of Goods Sold 279,000

Gross Profit 125,000

Operating Expenses:

Salaries and Wages Expense 58,000

Office Expenses 16,000

Travel Expenses 1,000 75,000

Operating Income: 50,000

Non-Operating Expenses

Income Tax Expense 15,000 15,000

Net Income 35,000

Explanation:

Multistep income statement makes a clear distinction on Operating Incomes and Expenses and Non-Operating Incomes and Expenses

Operating income is Profit generated from Primary activities of the company

Non-Operating Incomes and Expenses do not relate to the Primary activities of the firm.They occur as a result of secondary activities.

7 0

3 years ago

Vital Industries manufactured 2,400 units of its product Huge in the month of April. It incurred a total cost of $132,000 duri

jarptica [38.1K]

The answer is C. $39☺️

4 0

3 years ago

Read 2 more answers

Gina made a down payment on a motorcycle. What incentive did she have for making a down payment?

8_murik_8 [283]

Answer:

A reduced time in debt

Explanation:

Gina intends to purchase that motorbike on credit. By making a down-payment, Gina is reducing the amount she needs to borrow to buy the bike.

A reduced loan amount means that Gina will require less to repay. It also implies that the interest to be paid will reduce. Making the down-payment helps Gina stay in debt for a short period.

7 0

3 years ago