Divide 550,000 by 140 and thats the amount need to break even, anything greater will earn $20 in profit per machine
Answer:
C. cash budget.
Explanation:
As we know that
The cash budget refers to the inflow and outflow of cash in which inflow refers to the receipts of the service rendered while the outflow could be in terms of purchase of long term assets in cash, expenses incurred in cash, etc
So while estimated the cash inflows and cash outflows, the cash budget is to prepared so that the firm get to know its cash position
GDP deflator is nominal GDP divided by real GDP.
Therefore, 225/real GDP = 3, and then real GDP would then equal 75.
Answer:
a. AIE will have to borrow $25,5102.04
b. The Effective Rate on this Loan is 6.63%
c. If AIE can convince the bank to remove the compensating balance requirement the effective rate is 6.50%
Explanation:
In order to calculate how much will AIE have to borrow we would have to use the following formula:
Amount to be borrowed = Cost of Truck / (1 - Compensating balance)
Amount to be borrowed = $250000 / (1 - 0.02)
a. Amount to be borrowed = $25,5102.04
In order to calculate the effective rate on this loan we calculate the following:
Effective Rate on this Loan = Interest / Amount received
Effective Rate on this Loan = 16581.63 / 250000
b. Effective Rate on this Loan = 6.63%
c. If AIE can convince the bank to remove the compensating balance requirement the Effective rate = annual rate, hence the effective rate is 6.50%
Answer:
Territorial restrictions.
Explanation:
This is best described as a situation in which the Company conducts business within a particular jurisdiction, or territory or as stated to only authorized dealers.
