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A: Price of home = $230,000Down payment = 20%Loan amount = $230,000*(1-0.20).= $230,000*0.80.= $184,000
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A: Calculation of the discount yield is as follows:Discount yield = [(Par-Price) / Par ] x (360 / time…
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A: Present value of $270 received in year 7 at time 3 is = $270 / (1+6%)^(7-3)= $270 / (1.06)^4= $270 *…
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A: Cash cycle is the number of days between cash payment and cash receipt.
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A: Dividend at year 7 (D7) = $1Constant growth rate after year 7 (g) = 6%Discount rate (r) = 10%
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A: NPV is also known as Net Present Value. It is a capital budgeting technique which helps in decision…
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A: growth rate = expected return - dividend yield = 11 - 6 = 5%dividend yield = dividend/pricePrice =…
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A: Variables in the question:Sale Value=$20000Book Value=$7840Marginal Tax=40%
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A: Annual revenue=$700000Profit margin=23%Period=n=6 yearsTotal value of profit=$2000000
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A: In a statement of cash flows, the investing activities section provides insights into a company's…
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A: Bond Valuation is a method used to determine the theoretical fair value of the bond. This includes…
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- What type of cost is included in economic costs, but not included in accounting costs?a. Explicit costsb. Negative costsc. Normal profitd. Marginal coste. Unit costsWhich method results in a more realistic amount for income because it matches the most current costs against revenue? a.FIFO b.Weighted average cost c.Specific identification d.LIFOExplain the following basic principles in cost management:a. profitsb. life cycle costsc. tangible cost and benefitsd. intangible costs and benefitse. direct and indirect costsf. reserves
- What is cost-efficiency according to: 1. Profit Projection 2. Cost estimatesWhich of the following is NOT relevant to the calculation of the economic order quantity of a raw material? OA. ordering cost B. purchase price OC. stockholding cost D. usageWhich of the following ROIs uses the income computed under the accrual basis? A. Accounting rate of Return (ARR) B. Internal rate of return (IRR) C. Payback reciprocal D. True rate of return
- Q.Classify each cost as value-added, non-value-added, or in the gray area between.Q- 7: prices are needed? What is meant by Transfer price and why transfer Q- 8: opportunity cost, and sunk cost. Define the following terms: differential cost,1. The amount by which an item contributes towards covering fixed cost and providing for profit is known as: a. gross profit b. gross margin c. contribution margin d. net margin