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Novosadov [1.4K]

2 years ago

12

What would be the net present value of a microwave oven that costs $159 and will save you $68 a year in time and food away from

home

1 answer:

musickatia [10]2 years ago

6 0

Answer:

159 - 68 = 91

Explanation:

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What are two ways someone could earn money on a real estate investment? 1.) Residents pay to have the floors cleaned. 2.) Owner

zaharov [31]

Owner could sell a property he or she fixed up.
Residents pay rent to the owner.

8 0

3 years ago

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g On January 1, 2020, Lynn Company borrows $3,000,000 from National Bank at 11% annual interest. In addition, Lynn is required t

IgorLugansk [536]

Answer:

The effective interest that Lynn pays on its $3,000,000 loan is 11.67%

Explanation:

For computing the interest rate, first, we have to find out the effective interest which is shown below:

= Interest on borrowings - interest on the compensatory balance

where,

Interest on borrowings = Borrowings × interest rate

= $3,000,000 × 11%

= $330,000

Interest on compensatory balance = Compensatory balance × interest rate

= $300,000 × 5%

= $15,000

Now put these values to the above formula

So, the value would equal to

= $330,000 - $15,000

= $315,000

The formula to compute effective rate is shown below:

= Effective interest ÷ Total funds available

Where,

Total fund available = Borrowed amount - compensatory balance

= $3,000,000 - $300,000

= $2,700,000

And, the effective interest is $315,000

Now put these values to the above formula

So, the rate would equal to

= $315,000 ÷ $2,700,000

= 11.67%

8 0

3 years ago

Companies and their auditors have adopted a general rule of thumb that anything under 5% of _______ is considered not material.

nata0808 [166]

Answer:

The answer is net income

Explanation:

Net income is the difference the total revenue generated and the total cost(cost of sales, salaries, electricity etc.)

Materiality: A financial statement is said to material is when its misstatement or omission affects the opinion of its intended users.

Companies and auditors have agreed that anything under 5% of net income is considered not material, meaning any misstatement less than 5% of the net income is not considered to be important to alter the view of the users. In this kind of situation, auditors' opinion on the financial statement will be true and fair.

3 0

3 years ago

You are considering acquiring a common share of Sahali Shopping Center Corporation that you would like to hold for 1 year. You e

Artemon [7]

Answer: $28.30

Explanation:

Given the following :

Expected Dividend = $1.70

Earning from share sale at year end = $30

Expected rate of return on investment = 12%

Maximum price of stock :

(Earning from share + expected Dividend) / (1 + return rate)

(30 + 1.70) / ( 1 + 12%)

(30 + 1.70) / (1 + 0.12)

(31.70) / (1.12)

= $28.303571

= $28.30

3 0

3 years ago

Tyare Corporation had the following inventory balances at the beginning and end of May: May 1 May 30 Raw materials $ 28,500 $ 36

Serjik [45]

Answer:

Check the explanation

Explanation:

The raw material that was used during the month is calculated by adding beginning inventory with purchases and deducting the ending inventory from it.

Here from the below equation, only the purchase are not given, so we put the figures in the formulas and get the amount of purchases.

The beginning and ending balance are also given only purchases are rising, which can be calculated as given above.

Kindly check the workings in the attached image below.

3 0

3 years ago

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