We have given the contract to an agency for the value of 17 Cr for the duration of 7 month with the LD clause of 0.5% of total contract price for each week's delay or part thereof, subject to maximum of 5% of total contract price. But agency hascompleted only 9 Cr in 10 month duration and closed the work, in this case how will calculate the LD amount?

The objective of the question is to calculate the Liquidated Damages (LD) amount that the agency…

Answered: We have given the contract to an agency…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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A construction company agreed to lease payments of $573.95 on construction equipment to be made at the end of every month for 5 years. Financing is at 7% compounded monthly. (a) What is the value of the original lease contract? (b) If, due to delays, the first 9 payments were deferred, how much money would be needed after 10 payments to bring the lease payments up to date? (c) How much money would be required to pay off the lease after 10 payments? (d) If the lease were paid off after 10 payments, what would the total interest be? (e) How much of the total interest would be due to deferring the first 9 payments? C... (a) The value of the original lease contract is $. (Round the final answer to the nearest cent as needed. Round all intermediate values to six decimal places as needed.) (b) The company would have to pay $. (Round the final answer to the nearest cent as needed. Round all intermediate values to six decimal places as needed.) (c) The company would need $. (Round the final…
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A contracting firm anticipates that it will incur costs in excess of the contract price on a particular contract. The firm has completed two years of work but the contract is only 60% complete. What portion of the entire anticipated loss is recognized as of the end of the second year? Which section of the authoritative literature best describes this situation and provides the appropriate guidance?
Ryan McGuire Suppose that on 01-Feb-2024, a financial manager takes a long position in 200 Oil Future contracts that expire in June-2024 at a future price of $95.00 per barrel. Each Oil Future contract calls for the delivery of 1,000 barrels. The initial Margin and Maintenance margins are 12% and 5% of the initial face value of the contract, respectively, based on the number of contracts, the number of underlying assets per contract, and the future price on the settlement date (200 x 1,000 x $95.00). The manager holds the contract for 10 business days and needs to calculate their margin account balance for each day based on the provided daily prices for the respective Oil Future contract per barrel. Additionally, determine whether a Margin Call has occurred and, if so, calculate the value that the manager needs to deposit. Initial Margin Maintenance Margin Day Contract Opening D+1 D+2 D+4 D+5 D+6 D+7 D+8 D+9 D+10 Future Price/ per Underlying Asset $ $ $ $ $ $ $ $ $ $ 95.00 94.00 94.00…
rean Logistics company enters into an operating lease contract with a UK Company specialize in warehousing to rent the warehouse for 5 years (60 months). for every 12 months period, the lease payment will increase 5%. So if the 1st until 12th lease period the monthly payment at CU 1,014,000, at lease period 13th to 24th, the monthly lease payment will be CU 1,064,700. The 5% increase monthly lease payment will change every 12 month. The Incremental borrowing rate at 10.20% pa Based on this issues, according to IFRS 16 for lease, please create monthly the amortization lease table that includes the interest amount, principal amount, and depreciation amount for the next 60 operating lease period.
Question: Yankee Construction agreed to lease payments of $762.79 on the construction equipment to be made at the end of each month for six years. Financing is at 15% compounded monthly. a) What is the value of the original lease contract? b) If, due to delays, the first eight payments were deferred, how much money would be needed after nine months to bring the lease payments up to date? c) How much money would be required to pay off the lease after nine months? d) If the lease were paid off after nine months, what would the total interest be? e) How much of the total interest would be due to deferring the first eight payments?
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