Suppose that Emily opens a restaurant. She receives a loan from a bank for $200,000. She withdraws$100,000 from her personal savings account. The interest rate on the loan is 6%, and the interest rate onher savings account is 2%.5. Refer to Scenario 13-5. Emily's explicit cost of capital isa. $2,000.b. $4,000.c. $12,000.d. $14,000.6. Refer to Scenario 13-5. Emily's implicit cost of capital isa. $2,000.b. $4,000.c. $12,000.d. $14,000.7. Refer to Scenario 13-5. Emily's total opportunity cost of capital isa. $2,000.b. $4,000.c. $12,000.d. $14,000.

Answered: Image /qna-images/answer/0c0cc2df-a988-4833-9e71-3bb5b92b0ff6.jpg

Answered: Suppose that Emily opens a restaurant.…

Advanced Engineering Mathematics

10th Edition

ISBN:9780470458365

Author:Erwin Kreyszig

Publisher:Erwin Kreyszig

Chapter2: Second-order Linear Odes

Section: Chapter Questions

Problem 1RQ

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XYZ company is looking for a 4-months term source of $800,000 to supplement working capital. Which source below should the company choose? The bank A accepts loans at annual nominal rate of interest of 15% a year. The bank B accepts loans at discount interest rate of 14% a year. The bank C accepts a loan with interest rate of 10% per year and deposits rate at 12%
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Consider each of the after-tax cash flows shown in the table below. Suppose that projects B and C are mutually exclusive. Suppose also that the required service period is eight years and that the company is considering leasing comparable equipment with an annual lease expense of $3,000, payable at the end of each year for the remaining years of the required service period. Which project is a better choice at 15%? Click the icon to view the cash flows for the projects. Click the icon to view the interest factors for discrete compounding when i=15% per year. The present worth of project B is $thousand. (Round to one decimal place.) More Info Capital Single Payment Compound Amount Factor (F/P, i, N) Equal Payment Series Sinking Present Fund Worth Factor Factor (A/F, i, N) Compound Amount Factor (F/A, i, N) 1.0000 More Info Recovery Factor (A/P, i, N) 1.1500 (P/A, i, N) 1.1500 1.0000 0.8696 1.3225 2.1500 0.4651 1.6257 0.6151 B с 1.5209 3.4725 0.2880 2.2832 0.4380 - $7,000 -$5,000 1.7490…
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