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Veseljchak [2.6K]
2 years ago
4

Buyers Tom and Mary have arranged to take over the Joe and Sue’s insurance policy. The premium is $550 per year paid in advance

on March 1. Closing on the property is set for June 11. According to the 365-day method, what is Joe and Sue's share of the insurance cost?
Business
1 answer:
Ugo [173]2 years ago
7 0

Answer:

$394.79

Explanation:

Data provided in the question

Premium paid in advance on March 1 = $550

Closing date of the property = June 11

Total number of days = 365 days

So, the Joe and sue share of the insurance cost is

= Premium paid in advance × Given number of days ÷ Total number of days

= $550 × 262 days ÷ 365 days

= $394.79

The 262 days is calculated from the June 11 to March 1

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2 years ago
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A significant flaw in the payback method of capital budgeting is that____________ Group of answer choices it ignores cash flows
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Explanation:

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The following information, based on the 12/31/2021 Annual Report to Shareholders of Krafty Foods ($ in millions):
amid [387]

Answer:

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