Answer:
Option (D) is correct.
Explanation:
1.We use the formula:

where
A=future value
P=present value
r=rate of interest
n=time period.

![A=1,060[(1.12)^{2}+(1.12)^{1} + 1]](https://tex.z-dn.net/?f=A%3D1%2C060%5B%281.12%29%5E%7B2%7D%2B%281.12%29%5E%7B1%7D%20%2B%201%5D)
= 1,060 [1.2544 + 1.12 + 1]
= 1,060 × 3.3744
= $3,576.864
Therefore, the amount of $3,576.864 will Ashley have to buy a new LCD TV at the end of three years.
(b) Future value of annuity due = Future value of annuity × (1 + interest rate)
= $3,576.86(1 + 0.12)
= $3,576.86 × 1.12
= $4,006.08
She will save around $4,006.08
Answer: he could benefit from adopting such a system, but should also consult with an accountant for advice about what's best.
Answer:
$69020
Explanation:
Selling price -$54
Incremental selling price =54*(1-0.16)=45.36
Incremental sales - 45.36*7000= 317520
Contribution -
Direct materials = 24*7000 = (168000)
Direct labor = 6*7000 = (42000)
Variable manufacturing = (21000) (3*7000)
Variable selling price = (3500) 2*(1-0.75)
Total contribution = 83020
Additional cost of machine (14,000)
Incremental profit 69,020
Answer:
E.pay the holder the LIBOR interest above 6%.
Explanation:
On the off chance that the firm is selling the asset(floor) at 6%, it implies that the benefit is in contract and thus when selling the floor the holder of the floor should make installment to the mortgagee at LIBOR+6%, after which the deal will be concluded.
Therefore, the answer will be pay the holder LIBOR interest above 6%