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NemiM [27]
2 years ago
5

You sold a car and accepted a note with the following cash flow stream as your payment. What was the effective price you receive

d for the car assuming an interest rate of 6.0%?
Years: 0 1 2 3 4
Cash Flows: $0 $1,000 $2,000 $2,000 $2,000
Business
1 answer:
alexandr1967 [171]2 years ago
8 0

Answer:

The effective price you received for the car was $5,987

Explanation:

Effective price of the car can be calculated by the Net Present values of all the cash flows associated with the note.

Using following present value formula for each cash flows

Pv = FV  / ( 1 + r )^n

Net Present Value of all call flows = [ $1,000 / ( 1 + 6% )^1 ] + [ $2,000 / ( 1 + 6% )^2 ] +  [ $2,000 / ( 1 + 6% )^3 ] + [ $2,000 / ( 1 + 6% )^4 ]

NPV = $943.4 + 1,780 + $1,679.24 + $1,584.19 = $5,986.83 = $5,987

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Answer:

The solution is given in the attachments.

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Your entertainment price index (EPI) was computed based on three goods: movie tickets, popcorn, and limeade. If you change the q
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Answer:

Your entertainment price index (EPI), might fall or rise, contingent on both the quantity of the goods that you bought and the prices of these goods.

Explanation:

Price index is used extensively to estimate changes in prices overtime and are also used to measure differences in costs among different areas of countries.

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Walker & Co. (Walker) signed a written contract to lease a large neon advertising sign to Herbert Harrison, who is in the dr
Colt1911 [192]

Answer:

I believe that Walter breached the contract because they failed to clean the sign, but I wouldn't consider it a material breach (this would be a non-material breach).

A material breach of a contract takes place when the breaching party does something (or fails to do something) that goes against the basic reason why the contract was signed. A material breach would be that Walter didn't provide the sign or that the sign never worked (didn't turn on). But in this case, the sign was a little bit dirty with little spider cobwebs appearing at its corners.

4 0
2 years ago
Which of the following statements is not true of a strategic inflection point?
Elanso [62]

Answer:

The correct anwer is E) A new CEO is an example of a strategic inflection point.

Explanation:

The statement that "A new CEO is an example of a strategic inflection point" is false since to determine a strategic inflection point we rely on other factors that affect companies such as the power of competitors, the power of customers, the power of potential competitors, the power of suppliers and the power of substitutes.

For example, if my product or service is exceeded 10 times more by the competition in quality or price; we are talking about a strategic inflection point.

8 0
2 years ago
The following accounts were abstracted from Oriole Company's unadjusted trial balance at December 31, 2020: Debit Credit Account
Ronch [10]

Answer:

$52,710

Explanation:

Calculation for allowance for uncollectible accounts credit balance

Using this formula

Allowance for uncollectible accounts credit balance=Estimated gross uncollectible accounts receivable *Accounts receivable

Let plug in the formula

Allowance for uncollectible accounts credit balance=7%* $753,000

Allowance for uncollectible accounts credit balance=$52,710

Therefore After adjustment at December 31, 2020, the allowance for uncollectible accounts should have a credit balance of $52,710

7 0
2 years ago
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