Your mom will lend you money so long as you agree to pay her back within five years and you offer to pay her the rate of interest that she would otherwise get by putting his money in a saving account. Based on your earnings and living expenses, you think you will be able to pay him 8000$ in one year and then 10000$ each year for the following next four years. If your mom would otherwise earn 5% per year on her savings how much you can borrow from her?

Q: When you use a debit card to make a purchase, a financial institution is extending credit to you and…

A: When you use a debit card to make a purchase, a financial institution is extending credit to you and…

Q: Factoring of accounts receivable typically is the highest cost method of short-term financing.; True…

A: Yes its true   Accounts receivable (AR) financing is a type of financing arrangement in which a…

Q: Your County has asked you to analyze the purchase of some dump trucks. Each truck wil cost $45,000…

A: Cost of each truck =$45000 Salvage Value= $9000 Operating and maintaining cost=$15,000 n=5 years The…

Q: In January do you take a long or short position in the futures market? In July, what do you do in…

A: In January, as the plant manager, you take a long position in the futures market by buying 200 July…

Q: Consider the following information for a particular company and calculate the gross profit…

A: Step 1:Computation of the gross profit:Gross profit = Sales-Cost of goods sold=…

Q: Evaluating the credit quality of debt using traditional measures such as ratings are an example of…

A: Evaluating the credit quality of debt is an essential aspect of credit analysis for lenders and…

Q: If a person has ATM fees each month of $19 for 9 years, what would be the total cost of those…

A: The objective of the question is to calculate the total cost of ATM fees over a period of 9 years.

Q: If an individual moves money from a demand deposit account to a savings account

A: Trade can be explained to the activity of selling and purchasing goods, services, assets, financial…

Q: After visiting several automobile dealerships, Richard selects the used car he wants. He likes its…

A: The objective of the question is to calculate the total interest on Richard's loan and the total…

Q: Discuss the following Discuss the current Federal Funds rate and the prime rate and explain how they…

A: “Since you have posted a question with multiple sub parts, we will provide the solution only to the…

Q: Potential Market Risk Exposure: The danger of bank loss at some future time if the customer who…

A: Introduction: The term Market refers to an exchange of goods and services between the buyer and the…

Q: In the Solow growth model without continuous technology improvements, the principal obstacle to…

A: The Solow growth model focuses on the economic growth. One of the key components of economic growth…

Q: Critique the use of CDL’s existing weighted average cost of capital for its venture into the solar…

A: We will discuss the limitations of CDL's existing weighted average cost of capital and hypothesize…

Q: help

A: Performance Appraisal is a systematic and a periodic review of the performance of the employee to…

Q: Set up the system fequations and then solve it by using an inverse matrix. One safe investment pays…

A: Given, Investment =$1,47,200 and income = $20,000 per year. Let  us  assume that, X= Amount invested…

Q: Using time value of money tables, calculate the following. (Exhibit 1-A, Exhibit 1-B, Exhibit 1-C,…

A: From the future value of $1 table (Exhibit 1-A), we find the factor for 6 years at 5% interest rate.…

Q: Your classmate paid for your lunch yesterday. You want to pay them back but you don’t have any cash…

A: It's common to find yourself in a situation where you owe someone money but don't have cash on hand…

Q: The cash collection cycle is the number of days it takes to collect accounts receivable.  The…

A: Management of cash is an important function that has to be performed by every organization. Cash…

Q: If a borrower takes out an interest-only loan, when are they expected to pay the principal of the…

A: The question is asking about the repayment structure of an interest-only loan. In an interest-only…

Q: Explain why a business's liquidation value would be different from its going concern value. because…

A: The objective of the question is to understand why a business's liquidation value would be different…

Q: A company estimates that it will need $132,000 in 12 years to replace a computer. If it establishes…

A: To find out how much each monthly payment should be for the company to accumulate $132,000 in 12…

Q: Mr. Appoh has operated a satisfactory account with your branch for a period of 6 years. He is a…

A: The documents which Mr. Appoh is required to present are as stated in Step 2.

Q: 3. Explain the concept of the money multiplier and how the multiplier depends on the reserve…

A: The concept of the money multiplier lies at the core of fractional reserve banking systems,…

Q: Determine a capital good (an item with a useful life in excess of 1 year) that you need to acquire…

A: A capital good is an asset that has a useful life of more than one year and gives long term benefit…

Q: Which capital budgeting technique(s) measure all expected future cash inflows and outflows as if…

A: Companies use capital budgeting techniques to assess potential investment opportunities and…

Q: If you have no need for immediate cash and you are promised a future sum from a very reliable…

A: The business cash can be defined as the money which is in the hand of the company for buying the raw…

Q: Find the accumulated amount A if the principal P is invested at the interest rate of r/year for t…

A: Principal Amount = P = $180,000 Rate of Interest = r = 3% n = 12 times t = 214 = 2.25

Q: Choose any return management technique and analyze its advantages and disadvantages.

A: The returns management process includes quality control and inventory tracking.

Q: Discuss the pros and cons of a MNC having a centralized cash manager handle all cash management…

A: Centralized Cash ManagementPros:Reduced costs: By consolidating bank accounts and payments,…

Q: A certificate of deposit will often result in a penalty for withdrawing funds before the maturity…

A: The objective of the question is to calculate the penalty for early withdrawal of a Certificate of…

Q: First City Bank pays 8 percent simple interest on its savings account balances, whereas Second City…

A: The time line for the cash flows is: The simple interest per year is:$5,000 × .08 = $400So, after 10…

Q: Which one of the following functions that goldsmiths performed was most important in the development…

A: Goldsmith banking services initially began in the form of wealth storage such as gold and various…

Q: Discuss the ethical considerations involved in financial statement analysis.

A: Analyzing financial statements is an essential step in evaluating a business's performance and…

Q: Exchange rate effect is founded by Mundell and Fleming.

A: The answer is-

Q: Choose two different savings schemes and write down the advantages and the disadvantages of each…

A: Savings schemes fulfill a broad demographic and encourage individuals to invest for various…

Q: A government company created an account for strategic purposes (to help in facing the…

A: ANSWER: Amount = A  Interest rate = i  n = number of years

Q: Long-term debt typically describes debt that will mature in two years or more. Select one: O a. True…

A: Operation management in an organization aims at providing the highest efficiency possible. It…

Q: Cost benefit analysis is a complex approach that considers the cash flows or the value of money over…

A: Cost-benefit analysis (CBA) is a frequently employed approach for analyzing projects or policies by…

Q: Discuss why the effective interest method to amortize bonds premiums or discounts is preferable to…

A: The coupon rate a corporation pays on a bond is that the most blatant cost of debt financing, but it…

Q: Restricted stock is   Multiple Choice   a special type of stock that is not transferable from the…

A: The term "stock" refers to shares or ownership units in a company. When individuals hold stock in a…

Q: In the basic model of insurance, Income is the only output into a persons utility. This is obviously…

A: When a person falls ill, he has to pay lot of expenditure on hospital doctors and medicines. but…

Forecasting in Business

Forecasting is the process of predicting the future based on the past and the present data and circumstances. In other words, forecasting is the act of making a detailed analysis of future events based on the decisions made in the past as well as the present. Forecasting plays a very important role in operational management as it helps in planning and decision-making. It is not only important for the success of a business but also contributes to individual growth and success. Many business organizations or companies have failed due to the shortcomings of their forecasting.