<span>The term applied to the periodic expiration of a plant asset's cost over its life in a balanced and orderly way is depreciation. It is not process for valuation nor is process that results in gathering of cash. Land expenses are not subject to depreciation.</span>
Answer:
A. A bond which has a price of $850, a Yield to Maturity of 4%, and a Current Yield of 3.75%
Explanation:
Since George is focussed on achieving a high total return for his portfolio, he will consider adding a bond whose yield to maturity (YTM) is the highest. Among these options, option A would be ideal since it has a 4% YTM; he would probably not consider if the price of $850 is high or not . This is the annual interest rate paid on the bond investment.
Answer:
the fact that business firms make investment plans far in advance.
Explanation:
Usually businesses make investment plans years in advance. Imagine if a business plans to open a new factory, just the actual building of the facility may take over a year, plus the time it needs to set up machinery and start production. All that plus the time the company needed to analyze the project plus the time needed to get the money necessary to start the investment.
Answer:
a. The probability that any one customers service costs will exceed the contract price of $200 is 0.0228
b. Warda expected profit per service contract is $50
Explanation:
a. In order to calculate the probability that any one customers service costs will exceed the contract price of $200 we would have to calculate first the z value as follows:
z=x-μ/σ
z=$200-$150/$25
z=2
Therefore, probability that any one customers service costs will exceed the contract price of $200 is p(x>$200)=p(z>2)
=1-p(z≤2)
=1-0.9772
=0.0228
The probability that any one customers service costs will exceed the contract price of $200 is 0.0228
b. To calculate Warda expected profit per service contract we would have to make the following calculation:
Warda expected profit per service contract=service charge per contract-expected cost
Warda expected profit per service contract=$200-$150
Warda expected profit per service contract=$50
Warda expected profit per service contract is $50
Answer: Van's property tax will increase.
Trung's property tax will be less than Van's.
Trung's property tax will increase.
Explanation: Van’s property tax will increase because the value of his home is expected to increase more than Trung’s property value. Since Van’s property value is increasing and increasing more than Trung’s, Trung’s will be less than Van’s. Trung’s property tax is increasing due to the value increasing.
