Answer:
Explanation:
Cash Payment to customers: $450,000 x contract rate of 9% x 1/2 = $20,250
Amortization of the premium: $11,795/6 periods = $1,966
Bond interest Expense: $20,250 - $1966 = $18,284
Answer:
PV= $23,370.85
Explanation:
Giving the following information:
Cash flow (1-3)= $5,000
Cash flow (4-5)= $6,500
Discount rate= 6%
To calculate the present value, first, we need to calculate the final value:
FV= {A*[(1+i)^n-1]}/i
A= annual cash flow
Year 1-3:
FV= {5,000*[(1.06^3) - 1] / 0.06
FV= 15,918
Year 4-5:
FV= {6,500*[(1.06^2) - 1]} / 0.06
FV= 13,390
Now, the present value:
PV= FV/(1+i)^n
PV= 15,918/(1.06^3)= 13,365.06
PV= 13,390/(1.06^5)= 10,005.79
PV= $23,370.85
Answer:
(a) Linear model
Subject to:
(b) Standard form:
Subject to:
Explanation:
Given
Solving (a): Formulate a linear programming model
From the question, we understand that:
A has a profit of $9 while B has $7
So, the linear model is:
Subject to:
Where:
Solving (b): The model in standard form:
To do this, we introduce surplus and slack variable "s"
For 
inequalities, we add surplus (add s)
Otherwise, we remove slack (minus s)
So, the standard form is:
So, the linear model is:
Subject to:
Answer and explanation:
We should consider that at the same time as the hurricane, U.S. consumers were cutting back on sugar foods. It implies that the quantity demanded for sugar foods was likely to decrease bringing the prices up. However, the hurricane affecting the sugarcane crops affects the supply which will be lower. Thus, definitely, if the quantity supplied is lower so will the price.
Answer:
its total assets equal to $510 million,
Explanation:
Total assets = Loans + Bonds + Reserves
= $400 million + $80 million + $30 million
= $510 million
Therefore, its total assets equal to $510 million,
