Answer: See Explanation
Explanation:
First, we have to calculate the worth of factory A which will be:
= Cash flow / Cost of capital
= $19300 / 3.5%
= $19300 / 0.035
= $551428.57
= $551429
Cost of capital of Factory B = Cash flow / Worth
= $19,900 / $545,000
= 0.0365
= 3.65%
Cost of capital of Factory A = 3.5%
Cost of capital of Factory B = 3.65%
Worth of factory A = $551429
Worth of Factory B = $545,000
Therefore, factory A is more valuable than Factory B and Factory B is more risky than Factory A.
Answer:
- 2017 Price Index is 100
- 2018 Price Index is 111
Explanation:
The Price Index for any given Base year is always 100. 2017 is staed to be the base year so it's price index is 100.
2018
The Student Price Index can be calculated using the formula;
SPI = 
= 
* 100
= 
= 111.21
= 111
Hiya! hollandaise sauce mostly contains equal parts of egg yolk and butter.
Answer:
b. a specialty store.
Explanation:
A specialty store. -
It is a type of retail business , which focus on certain goods and services , is known as a speciality store .
These type of company are expert in making a certain goods or services .
For example ,
The store that are designed specifically for men clothing or women clothing or specific for toys , cosmetics etc .
Hence , from the question , the correct term according to the given information of the question is a specialty store .
Answer: A. incorrect because part of each payment is to principal and to interest. Therefore, only a portion of the payment goes to interest, so the full amount should not be included when computing the rate of interest paid.
Explanation:
When paying back a loan, there are two components to the periodic interest payment. The first component is the interest payment. This is the payment to compensate the borrower for loaning out the money and is based on the interest rate and the principal left to be repaid.
The second component goes towards repaying the principal of the loan which in this case is $10,000. When computing the periodic interest rate therefore, the entire amount paid per period should not be used as it would inflate the interest rate.
