Answer:
16,900
Explanation:
Ending Inventory = 30% x 12,000 = 3,600
Beginning Inventory = 30% x 19,000 =5,700
Thus;
19,000 + 3,600 – 5,700 = 16,900
Therefore the Porch Cushion Company need to purchase in August,900 pound of foam of Cushion.
Answer:
(A) 4.8 months
Explanation:
After the expiration of a lease, a maximum of one third allowance is usually given.
Therefore, The expected vacancy at the end of this lease can be calculated as follows:
The expected vacancy = 60% × 12 × (2 ÷ 3) = 4.8 months
Therefore, the expected vacancy at the end of the lease is 4.8 months.
Answer:
Internal Rate of Return (IRR) 9,00%
Explanation:
We use excel or a spreadsheet to calculate this ratio. See document attached.
We use a cash flow to solve this problem.
At moment 0 we have the investment cost , in this case $365,695. From period 1 to period 9, we have incomes o benefits of $61,000. Then, we calculate the Net cash flow that is the difference between benefits and cost.
We use all the result (positive and negative) in Net cash flow to get the IRR.
Answer:
1. Is this a 17 percent loan?
- No, the loan charges a much higher interest rate
2. What rate would legally have to be quoted?
3. What is the effective annual rate?
Explanation:
effective annual rate = (1 + i/n)ⁿ - 1
using a financial calculator, i = 30% (PV = 20,000, PMT = -1,950, Nper = 12, FV = 0)
monthly interest rate = 2.5%
effective annual rate = (1 + 0.30/12)¹² - 1 = (1 + 0.025)¹² - 1 = 1.3449 - 1 = 0.3449 = 34.49%
APR (legal rate) = 2.5% x 12 = 30%
ANSWER: B) Lease the car with a 0 percent down payment.
EXPLANATION: The car Mark wants to buy has a price of $30,000 whereas his savings account has $500 and checking account has $300 which adds up to $800. The amount of money Mark has is only 2.66% of the cost of the car.
If he tries for option A which is buying the car with 10% down payment, then it would not have been possible as 10% of the car price would be $3,000. Mark at this moment will be short of money by $2,200.
If he tries for option B which is leasing with 0% down payment, Mark will be able own the car without paying any money and also saving the entire amount that his savings account and checking account has.
If he tries for option C which is leasing by paying 35% down payment, Mark will need $10,500. He will run short of money by $9,700.
If Mark tries for option D which is purchasing the car by paying 20% down payment, then he will need $6,000 which is impossible for Mark even if he pulls in money from both the accounts. He will run short of money by $5,200.
