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Naily [24]
2 years ago
15

Which would help you the least when creating your own practice test?

Business
1 answer:
Dmitriy789 [7]2 years ago
3 0

Answer:

textbook chapter headings

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You and your friends have decided to build a skateboard ramp behind your house. You have already purchased $500 in materials and
Rufina [12.5K]

Answer:

Hand saw is cheaper.

Explanation:

Given:

Material cost = $500

Electric saw cost rent per hour = $20

Building hour from electric saw = 6 hour

Building hour from hand saw = 15 hour

Time off pay from job = $8/hour

Computation of total cost from Electric saw :

Total cost from Electric saw = Material cost + Renting cost of electric saw + Time of from job

Total cost from Electric saw = $500 + (6 × $20) + (6 × $8)

Total cost from Electric saw = $500 + $120 + $48

Total cost from Electric saw = $668

Computation of total cost from hand saw :

Total cost from hand saw = Material cost + Time of from job

Total cost from hand saw = $500 + (15 × $8)

Total cost from hand saw = $500 + $120

Total cost from hand saw = $620

Hand saw is cheaper.

5 0
3 years ago
Glassmaker has pre-merger $5 in debt and $10 in equity. Rate on debt is 11%. The risk free rate is 6%. The tax rate is 40% . The
Marysya12 [62]

Answer:

The answer is 11.44%

Explanation:

Solution

Given that:

Glass maker has a pre-merger of =$5 debt

Equity =$10

The rate on debt =11%

The risk free rate =6%

Tax rate =40%

The levered beta is =1.36

Equity risk premium is= 4%.

Now,

the next step is to find discount to use for Glass maker free cash flows and interest tax savings

Cost of equity (Ke) =  Risk free return + Beta ( Market return - Risk free return )

= 6% +1.36( 10%-6%)

=11.44%

Therefore, the rate to be used to discount free cash flows and interest tax savings is 11.44%

6 0
4 years ago
Quad Enterprises is considering a new three year expansion project that requires an initial fixed asset investment of 2.32 milli
butalik [34]

Answer:

$128,787.07

Explanation:

Initial investment = $2.32 million = $2,320,000

Depreciation = investment ÷ Useful life

= $2,320,000 ÷ 3

= $773,333.33

Operating cash flows from year 1 to year 3

= [ ( Sales - Costs - Depreciation ) × (1 - tax) ] + Depreciation

= [ ( $1,735,000 - $650,000 - $773,333.33 ) × (1 - 0.21) ] + $773,333.33

= 1019549.99 ≈ 1,019,550

Thus,

NPV = Present value of cash inflows - Present value of cash outflows

Also,

Initial investment = \frac{1,019,550}{(1 + 0.12)^1} + \frac{1,019,550}{(1 + 0.12)^2} + \frac{1,019,550}{(1 + 0.12)^3} - 2,320,000

or

NPV = $128,787.07

6 0
3 years ago
A property sells for $120,000. the mortgage is $90,000 and the lender charges 3 points on the loan. how much is paid for the dis
dimulka [17.4K]

The amount paid for the discount points is $2,700

What do 3 points on the loan mean?

The 3 points mean that the borrower needs to pay 3% of the loan amount in order to enjoy a lower interest on the mortgage loan, in other words, the amount paid for the discount points is 3% of the loan amount of $90,000

amount paid for the discount=points*loan amount

loan amount=$90,000(not $120,000 which is the property purchase price)

amount paid for the discount=3%*$90,000

amount paid for the discount=$2,700

Find out more about discount points on://brainly.com/question/26040338

#SPJ1

8 0
2 years ago
Every motor vehicle registered in a foreign jurisdiction and every motorcycle registered in this state must be equipped with a m
Snezhnost [94]
Every motor vehicle registered in a foreign jurisdiction and every motorcycle registered in this state must be equipped with a mirror located so that the driver is able to view the roadway 200 feet to the rear of the vehicle.
4 0
3 years ago
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