answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
____ [38]
2 years ago
4

An investment in the Mezzogiorno will receive a subsidized loan of $12 million from the Italian government. The loan bears an in

terest rate of 7% in contrast to a market rate of 10%. The loan principal must be paid back in 8 years. What is the present value of the interest subsidy?
a) $360,000
b) $1.92 million
c) $2.31 million
d) $870,000
Business
1 answer:
stira [4]2 years ago
8 0

Answer:

b) $1.92 million  

Explanation:

year               cash flow        [email protected]%           present value

0                                            1.000                                        

1                      0.36                0.909                   0.33

2                     0. 36               0.826                    0.30

3                     0. 36               0.751                      0.27

4                     0. 36                0.683                     0.25

5                     0. 36                0.621                      0.22

6                     0. 36                0.564                      0.20

7                     0. 36                0.513                       0.18

8                     0. 36                0.467                       0.17

Net present value                                                  1.92

Therefore, The present value of the interest subsidy is 1.92 million

You might be interested in
Which of the following statements is true regarding a work team?A) Work teams are rarely used in organizations today.B) Work tea
Lyrx [107]

Answer:

C) Work teams generate positive synergy through coordinated effort.

Explanation:

<u><em>Work teams is a team formed with number of individuals working for the same goal, who posses different talents and values, and joint together, providing a positive synergy in the team, towards the common goal.</em></u>

Work teams are focused and for reaching the goals, distribute the work among themselves through a facilitator, who is said to lead the work team, in the process of achieving a common goal.

Therefore, correct statement is:

Statement C

3 0
2 years ago
A market maker faces the following demand and supply for widgets. Eleven buyers are willing to buy at the following prices: $15,
beks73 [17]

Answer:

maximum profit ($30 in total) is obtained by selling 5 units

Explanation:

  1. if the market maker buys and sells one unit, his/her profit = $15 - $5 = $10
  2. if the market maker buys and sells two units, his/her profit = $10 + ($14 - $6) = $18
  3. if the market maker buys and sells three units, his/her profit = $18 + ($13 - $7) = $24
  4. if the market maker buys and sells four units, his/her profit = $24 + ($12 - $8) = $28
  5. if the market maker buys and sells five unit, his/her profit = $28 + ($11 - $9) = $30

the maximum profit per unit is obtained by selling only 1 unit, but the total maximum profit is obtained by selling 5 units.

3 0
2 years ago
When bringing to market a new product like the MotorolaOne Zoom, the actual product launch takes place in the __________________
AnnZ [28]

Answer:

Option E: Commercialization

Explanation:

The marketplace is simply dynamic and undergoes different changes and the demand rate for products is also do change. Companies evaluate their already made or existing product line, update it and tries to fit into the standard of their consumers.

In the new product development strategies, companies makes a unique new product development strategy to limit the overuse of time and resources through the method of, organize planning and research, understanding what customer really want thereby definitely resourcing of the said project.

In commercialization, it entails the new product launching procedures (processes). It usually needs heavy promotion and product distribution throughout the network.

6 0
1 year ago
Cheapo Manufacturing decided to lease a 100,000 square foot facility. What type of lease will they most likely sign? A net lease
Alinara [238K]

Net lease type will be the most likely sign by Cheapo manufacturing.

<u>Explanation:</u>

Single net leases, which are frequently alluded to as a Net or N rent, are not as regular in the rental world. In a rent this way, the proprietor moves a negligible measure of hazard to the occupant, who covers the property charges. This implies some other cost, for example, protection, support and fixes, and utilities—are the proprietor's obligation. The landowner is likewise liable for any support and additionally fixes that must be finished over the span of the rent inside the property.  

Occupants under a solitary net rent wind up paying marginally lower lease than with a standard rent as a result of the additional expense of property charges. In any case, a higher rental installment doesn't reduce the landowner's obligation regarding staying up with the latest.

6 0
2 years ago
Spontaneously generated funds are generally defined as follows: a. Funds that a firm must raise externally through borrowing or
siniylev [52]

Answer: e. Funds that arise out of normal business operations from its suppliers, employees, and the government, and they include spontaneous increases in accounts payable and accruals.

Explanation:

Spontaneously Generated Funds are a result of an increase in sales. This then in turn leads to an increase in Accounts Payables, wages to employees and taxes to the Government. For example, if sales rise then the company will buy more from.its suppliers leading to a higher Payables balance.

It is used in the calculation of Additional Funds Needed where it along with an increase in Retained earnings is subtracted from the required increase in sales.

6 0
2 years ago
Other questions:
  • Catherine has been managing her company for a couple of years. She now plans to expand her business by bringing in fresh funding
    8·1 answer
  • In agriculture, a "bumper crop" refers to a particularly productive harvest. If there is a bumper crop for wheat at the same tim
    14·1 answer
  • A company planned to sell 100 canoes for the month of April at an average sales price of $600. Midway through the month, the com
    14·1 answer
  • Nero signs a check "pay to the order of Olive" drawn on Nero's account in Plum Bank- Olive signs the back of the check. Secondar
    6·1 answer
  • Businesses commonly rely upon groups to make decisions because of the many advantages to group decision making. Which of the fol
    15·1 answer
  • Why do infomercials use both strong and weak arguments? to appeal to both high and low involvement consumers because it is neces
    12·1 answer
  • A consumer's bundle includes good X and good Y. If good X is a Giffen good and the price of good X decreases, the consumer will
    7·2 answers
  • Studies indicate that the price elasticity of demand for beer is about 0.9. A government policy aimed at reducing beer consumpti
    15·1 answer
  • Juanita makes $16 an hour at work. She has to take time off work to purchase her skirt, so each hour away from work costs her $1
    5·1 answer
  • Cretin Enterprises uses a predetermined overhead rate of $21.40 per direct labor-hour. This predetermined rate was based on a co
    5·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!