On January 1, James Industries leased equipment to a customer for a four-year period, at which time possession of the leased asset will revert back to James. The equipment cost James $700,000 and has an expected useful life of six years. Its normal sales price is $700,000. The residual value after four years is $100,000. Lease payments are due on December 31 of each year, beginning with the first payment at the end of the first year. The interest rate is 5%. Calculate the amount of the annual lease payments.

Answers

Answer 1

Answer:

$174,207.19

Explanation:

Amount to be recovered (Fair value) = $700,000.....A

PV of residual value = $100,000 * PVIF of $1(5%, 4) = $100,000 * 0.82270 = $82,270.........B

Amount to be recovered through periodic lease payments = A - B = $700,000 - $82,270 = $617,730

Annual lease payment = Amount to be recovered through periodic lease payments / PV of ordinary annuity of $1(5%, 4)

Annual lease payment = $617,730 / 3.54595

Annual lease payment = $174207.194123

Annual lease payment = $174,207.19

So,  the amount of the annual lease payments is $174,207.19.


Related Questions

The risk free rate currently have a return of 2.5% and the market risk premium is 5.77%. If a firm has a beta of 1.42, what is its cost of equity

Answers

Answer:

10.69%

Explanation:

Market risk premium = 5.77% or 0.0577

The beta = 1.42

Risk free rate = 2.5% or 0.025

Cost of equity = Risk free rate + Beta*Market risk premium

Cost of equity = 0.025 + 1.42*0.0577

Cost of equity = 0.025 + 0.081934

Cost of equity = 0.106934

Cost of equity = 10.69%

Exercise 4-10 Preparing adjusting and closing entries for a merchandiser LO P3 The following list includes selected permanent accounts and all of the temporary accounts from the December 31 unadjusted trial balance of Emiko Co., a business owned by Kumi Emiko. Emiko Co. uses a perpetual inventory system. Debit Credit Merchandise inventory $ 40,000 Prepaid selling expenses 7,600 Dividends 53,000 Sales $ 609,000 Sales returns and allowances 21,500 Sales discounts 7,000 Cost of goods sold 252,000 Sales salaries expense 68,000 Utilities expense 25,000 Selling expenses 46,000 Administrative expenses 125,000 Additional Information Accrued and unpaid sales salaries amount to $1,800. Prepaid selling expenses of $2,900 have expired. A physical count of year-end merchandise inventory is taken to determine shrinkage and shows $34,700 of goods still available. (a) Use the above account balances along with the additional information, prepare the adjusting entries. (b) Use the above account balances along with the additional information, prepare the closing entries.

Answers

Answer:

Kumi Emiko Co.

a) Adjusting Journal Entries:

Debit Sales Salaries expense $1,800

Credit Sales Salaries Payable $1,800

To record accrued sales salaries.

Debit Selling expense $2,900

Credit Prepaid selling expense $2,900

To record expired selling expense.

Debit Cost of goods sold $5,300

Credit Merchandise Inventory $5,300

To record determined shrinkage in merchandise inventory.

b) Closing Journal Entries:

Debit Sales revenue $ 609,000

Credit Sales returns and allowances $21,500

Credit Sales discounts $7,000

Credit Income summary $580,500

To close the net sales revenue to the income summary.

Debit Income Summary $526,000

Debit:

Cost of goods sold             $257,300

Sales salaries expense          69,800

Utilities expense                    25,000

Selling expenses                   48,900

Administrative expenses    125,000

To close cost of goods sold and expenses to the income summary.

Debit Income Summary $54,500

Credit Retained Earnings $54,500

To close the income summary to retained earnings.

Debit Retained Earnings $53,000

Credit Dividends $53,000

To close the dividend to retained earnings.

Explanation:

a) Data and Calculations:

                                                    Debit       Credit

Merchandise inventory         $ 40,000

Prepaid selling expenses           7,600

Dividends                                 53,000

Sales                                                      $ 609,000

Sales returns and allowances 21,500

Sales discounts                          7,000

Cost of goods sold               252,000

Sales salaries expense          68,000

Utilities expense                    25,000

Selling expenses                   46,000

Administrative expenses    125,000

Analysis of additional Information:

Sales Salaries expense $1,800 Sales Salaries Payable $1,800

Selling expense $2,900 Prepaid selling expense $2,900

Cost of goods sold $5,300 Merchandise Inventory $5,300

Adjusted accounts:

                                                    Debit       Credit

Merchandise inventory         $ 34,700

Prepaid selling expenses           4,700

Dividends                                 53,000

Sales Salaries Payable                                   1,800

Sales                                                      $ 609,000

Sales returns and allowances 21,500

Sales discounts                          7,000

Cost of goods sold               257,300

Sales salaries expense          69,800

Utilities expense                    25,000

Selling expenses                   48,900

Administrative expenses    125,000

In the 2008 global financial crisis, many investors considered the US economy a safe place to move their assets What is the predicted impact of this inflow of financial capital to the US, which is a large, open economy, on the US interest rate and the US exchange rate, holding other factors constant Illustrate your answer graphically and explain in words.

Answers

Answer:

Good for US interest rate and the US exchange rate.

Explanation:

The predicted impact of this inflow of financial capital to the United states of America is good for the economy as well as for US interest rate and the US exchange rate when the movement of assets occur to the United states of America. The economy of the United states of America gets to be better due to this action of investors. This 2008 global financial crisis greatly damaged the economy of United states of America so this action bring some betterment in the economy.

The Dulac Box plant works two 8-hour shifts each day. In the past, 1000 cypress packing boxes were produced by the end of each day. The use of new technology has enabled them to increase productivity by 20%. Productivity is now approximately:____.
A) 32.5 boxes/hr.B) 40.6 boxes/hr.C) 62.5 boxes/hr.D) 81.25 boxes/hr.E) 300 boxes/hr.

Answers

Answer:

The Dulac Box

Productivity is now approximately:____.

= 75 boxes/hr

Explanation:

a) Data and Calculations:

Number of shifts per day = 2

Each shift works 8 hours

Total hours worked each day = 16 hours

Number of cypress packing boxes produced each day = 1,000

Productivity per hour = 62.5 boxes/hr (1,000 boxes/16 hours)

Increase in productivity from the use of new technology = 20%

Therefore, the number of cypress packing boxes produced each day will increase by 20% to 1,200 boxes (1,000 * 1.2)

New Productivity per hour = 75 boxes/hr

Suppose you borrow at the risk-free rate an amount equal to your initial wealth and invest in a portfolio with an expected return of 16% and a standard deviation of returns of 20%. The risk-free asset has an interest rate of 4%. Calculate the expected return on the resulting portfolio.

Answers

Answer: 28%

Explanation:

First, we have to make an assumption that the initial wealth is 100, then the weight of the risk free asset will be:

= Amount invested in risk free / Initial wealth

= -100/100

= -1

The weight of the portfolio will be calculated as:

= 1 - weight of risk free asset

= 1-(-1)

= 1 + 1

= 2

Therefore, the expected return on the resulting portfolio will be:

= 2 × 16 + [(-1) × 4]

= 32 - 4

= 28

One of the growers is excited by the price increase caused by the blight because he believes it will increase revenue in this market. As an economics student, you can use elasticities to determine whether this change in price will lead to an increase or decrease in total revenue in this market.Using the midpoint method, the price elasticity of demand for soybeans between the prices of

Answers

Full question attached

Answer:

Not elastic

Explanation:

The formula for demand elasticity= percentage change in quantity/percentage change in price

Therefore demand elasticity = Q2-Q1/Q2+Q1/2/P2-P1/P2+P1/2

Using graph of demand attached

= 12-15/12+15/2/21-15/21+15/2

= -3/27/2/6/36/2

=-2/9/1/3

=-2/3

=-0.67

Elasticity is less than one and so demand is inelastic

A factory wishes to maximize its profit by choosing how many of each of its products to produce every week. The factory cannot produce more than 32 units in total each week. A linear programming problem is formed and the part of the sensitivity report corresponding to this constraint is provided below. If the company could produce 10 more units each week, which of the following can be concluded about the optimal profit?
Nam Final Value Shadow Constraint R.H. Allowable Allowable
Price Side Increase Decrease
Total
Production 32 32 90 15.333 8.667
a. Optimal profit increases by 90.
b. Optimal profit increases by 900.
c. Optimal profit increases by 15.3.
d. Optimal profit increases by 153.3.
e. The impact on optimal profit cannot be determined with the given information.

Answers

Ask Siri to help you and there is the answer

Valley Spa purchased $10,200 in plumbing components from Tubman Co. Valley Spa signed a 60-day, 14% promissory note for $10,200. If the note is dishonored, but Tubman intends to continue collection efforts, what is the journal entry to record the dishonored note? (Use 360 days a year.)

Answers

Answer:

Debit Accounts Receivable—Valley Spa $10,438 Credit Interest Revenue $238

Credit Notes Receivable $10,200.

Explanation:

Preparation of the the journal entry to record the dishonored note

Debit Accounts Receivable—Valley Spa $10,438

($10,200+$238)

credit Interest Revenue $238

($10,200 x 14% x 60/ 360)

Credit Notes Receivable $10,200

(To record the dishonored note)

Llewelyn Company purchased 1,000 shares of its own $10 par value common stock when the market price of the stock was $36 per share. What journal entries would be used to record the purchase of treasury stock?

Answers

Answer: Increase the treasury stock account and decrease the cash account by $36,000.

Explanation:

The journal entries that would be used to record the purchase of treasury stock will be to increase the treasury stock account and decrease the cash account by $36,000.

Note that the $36000 was calculated as:

= 1,000 shares × $36 per share

= $36,000

Credit terms are terms for a.when payments for merchandise are to be made with cash. b.when the payments for merchandise are to be made. c.when the returns of merchandise are to be made. d.when inventory is purchased.

Answers

Answer: b.when the payments for merchandise are to be made.

Explanation:

Credit terms refers to the payment terms which are mentioned on the invoice when a good is bought.

Credit terms are terms for when payments for merchandise are to be made. Credit Terms are made during sales on account. The credit term shows the discount rate tahts offered to the costumer and the time limit that the creditor is expected to pay.

Amanda is playing a game of chance in which she rolls a number cube with sides numbered from to 1 to 6. The number cube is fair, so a side is rolled at random. This game is this: Amanda rolls the number cube once. She wins $1 if a 1 is rolled, $2 if a 2 is rolled, $3 if a 3 is rolled, and 4 if a 4 is rolled. She loses $0,50 if a 4, 5 or 6 is rolled.
(a) Find the expected value of playing the game.
(b) What can Elsa expect in the long run, after playing the game many times?
1) Elsa can expect to gain money. She can expect to win__dollars per roll.
2) Elsa can expect to lose money. She can expect to lose___dollars per roll.
3) Elsa can expect to break even (neither gain nor lose money).

Answers

Answer:

a. 0.75

b. elsa can expect to gain money. 0.75$

Explanation:

x = 1/6 = 0.166667

given  an outcome of 1,

1$ win * 0.166667 = 0.166667

given an outcome of 2,

$2 win * 0.166667 = 0.33333

given an outcome of 3,

$3 win*0.166667 = 0.5

remember that if she has an out come of 4, 5 and 6 she loses 0.5 dollars

given an outcome of 4,

-$0.5 * 0.166667 = -0.083333

given an outcome of 5,

-$0.5 * 0.166667 = -0.083333

given an outcome of 6,

-$0.5 * 0.166667 = -0.083333

The expected value of playing the game = 0.166667+0.333333+0.5-0.083333-0.083333-0.083333

= 0.750001

expected value of plying game = 0.75

b. in the long run, after playing the game many times, Elsa can expect to gain money. she can expect to win 0.75$ per role. option 1

Colette Value Inc., a game development firm, has received a new project that involves the development of a mobile game. The project must be completed within a year. The company, however, is facing a shortage of mobile game developers and must hire 50 developers to ensure the timely completion of the project. As a result, the firm decides to take part in a job-related event that would give the firm access to a large pool of applicants at the same time. Which of the following recruitment options has Colette Value decided to use to find a large number of suitable candidates in a short time?
a. Alumni networks.
b. Job fairs.
c. Job posting systems.
d. Employee referrals.

Answers

Answer:

b. Job fairs.

Explanation:

Job fairs is the quickest method to bring the right talent as at the job fairs the people who wants to look for the job presently and on urgent basis so it will be considered. Also it considered the young and the latest talent plus the right candidates that hired in some days. Due to this, it saves the cost also received the best talent

So as per the given situation, the option b is correct

Suppose a commercial bank has checkable deposits of $80,000 and the legal reserve ratio is 20 percent. If the bank's required and excess reserves are equal, then its actual reserves

Answers

Answer: $32000

Explanation:

The required reserves will be calculated as:

= Checkable deposit × Legal reserve ratio

= $80000 × 20%

= $16000

Excess reserves = $16000

Actual reserves will now be:

= Required reserves + Excess reserves

= $16,000 + $16,000

= $32,000

Drew Davis goes to his local bank to get help developing a financial plan and making investment decisions. Which of the more recent services banks offer is Drew taking advantage of

Answers

Answer: b. Getting financial advice

Explanation:

As the number of banks in the world increases, banks are having to offer more products and services apart from their traditional roles as lenders in order to remain relevant and competitive. One such product is giving financial advice.

Banks now offer advice on how to make better investment decisions, develop financial plans and even organize your estate. This is what Drew Davis was taking advantage of here.

Which of the following is NOT an accurate description of modern marketing?

Marketing involves managing profitable customer relationships.

Marketing involves satisfying customers' needs.

O Marketing is the creation of value for customers.

Marketing emphasizes selling and advertising exclusively.

O Marketing is building value-laden exchange relationships with customers.

Answers

I'm stuck between

Marketing is the creation of value for customers and

Marketing emphasizing selling and advertising exclusively l.

Trudeau’s Body Shop incurs total costs given by TC = 2,400 + 100 Q. If the price it charges for a paint job is $120, what is its break-even level of output?

Answers

Answer:

The break-even level of output is 120 units.

Explanation:

Since Total Cost formula is provided, we can use elements contained in the formulae to determine the break-even level of output.

The  break-even level of output is the level of activity where a firm makes neither a Profit nor a Loss. In other words, Profit = $0

Step 1 : Collect data

So given :

TC = 2,400 + 100 Q

This means :

Fixed Costs = $2,400

Variable Costs = $100 per unit

Additional Information gives :

Selling Price per unit =  $120

Step 2 : Determine the break-even level of output

Break even (units) = Fixed Costs ÷ Contribution per unit

where,

Contribution per unit = Selling Price - Variable Cost

                                   = $20

thus,

Break even (units) = $2,400 ÷ $20

                              = 120 units

Conclusion :

The break-even level of output is 120 units.

Alternative Financing Plans
Owen Co. is considering the following alternative financing plans:
Plan 1 Plan 2
Issue 7% bonds (at face value) $5,000,000 $3,400,000
Issue preferred $1 stock, $20 par — 3,600,000
Issue common stock, $25 par 5,000,000 3,000,000
Income tax is estimated at 40% of income.
Determine the earnings per share of common stock, assuming income before bond interest and income tax is $750,000.
Enter answers in dollars and cents, rounding to the nearest whole cent.
Plan 1 $_____________________ Earnings per share on common stock
Plan 2 $_______________________ Earnings per share on common stock

Answers

Answer:

Owen Co.

Alternative Financing Plans

                                                    Plan 1              Plan 2

Earnings per share                     $1.20               $1.06

Explanation:

a) Data and Calculations:

                                                         Plan 1              Plan 2

Issue 7% bonds (at face value) $5,000,000      $3,400,000

Issue preferred $1 stock, $20 par     —                3,600,000

Issue common stock, $25 par   5,000,000         3,000,000

Income tax is estimated at 40% of income.

EBIT =                                           $750,000          $750,000

Interest on bonds                         350,000             238,000

Income before taxes                  $400,000           $512,000

Income tax                                     160,000             204,800

Net income                                 $240,000          $307,200

Preferred dividend                          -                     $180,000

Earnings available to common

stockholders                            $240,000           $127,200

Outstanding shares                   200,000             120,000

Earnings per share                          $1.20                 $1.06  

                    $1.20 ($240,000/200,000)           $1.06 ($127,200/120,000)

Preferred stock dividend rate = 5% ($1/$20 * 100)

Preferred stock dividend = $180,000 ($3,600,000/$20 * $1)

or 5% of $3,600,000

Bims Corporation uses the weighted-average method in its process costing system. The Assembly Department started the month with 2,400 units in its beginning work in process inventory that were 70% complete with respect to conversion costs. An additional 62,000 units were transferred in from the prior department during the month to begin processing in the Assembly Department. There were 20,000 units in the ending work in process inventory of the Assembly Department that were 60% complete with respect to conversion costs. What were the equivalent units for conversion costs in the Assembly Department for the month

Answers

Answer:

56,400 units

Explanation:

The computation of the equivalent units for conversion costs in the Assembly Department is given below:

But the transferred units is

=  Beginning work in process inventory units + additional units - ending work in process inventory units

= 2,400 units + 62,000 units - 20,000 units

= 44,400 units

Now the equivalent units for conversion costs equal to

=  Transferred units × percentage of completion + ending work in process inventory units × percentage of completion

= 44,400 units × 100% + 20,000 units ×60%

= 44,400 units + 12,000 units

= 56,400 units

Many economists oppose a constitutional amendment that would require a balanced budget for the federal government because it would probably make the business cycle more volatile.
a. True
b. False

Answers

False is the correct answer

Answer:

The statement is False.

Explanation:

What is a constitutional balanced budget amendment?

The balanced budget amendment's requirement that total government spending cannot exceed total receipts collected in the same year has far-reaching ramifications for Social Security.

What is Balanced Budget?

A balanced budget is one in which total revenues equal or exceed total costs. After a full year of revenues and expenses have been incurred and recorded, a budget can be declared balanced. Budget deficits, according to proponents of a balanced budget, burden future generations with debt.

Example of Balanced Budget-

If Michael and Jessica earn $75,000 per year but spend only $70,000, they have a balanced budget because their expenses are equal to or less than their income. They can use the extra $5,000 in their budget to pay off debt or meet their savings goals in this situation.

Learn more about Balanced Budget here-

https://brainly.com/question/495298

#SPJ2

Which correctly identifies a condition which must be met for creditors to force a firm into involuntary bankruptcy?

Answers

bankruptcy is the best way to wipe out your debt and get a fresh start.

Journalizing transactions using the direct write-off method versus the allowance method During August 2018, Lima Company recorded the following
. Sales of $133,300 ($122,000 on account $11,300 for cash). Ignore Cost of Goods Sold.
. Collections on account, $106,400.
. Write-offs of uncollectible receivables, $990.
. Recovery of receivable previously written off, $800.
Requirements
1. Journalize Lima's transactions during August 2018, assuming Lima uses the direct write-off method
2. Journalize Lima's transactions during August 2018, assuming Lima uses the allowance method.

Answers

Answer:

Lima Company

Journal Entries during August 2018:

1. Direct write-off method:

Debit Accounts Receivable $122,000

Debit Cash $11,300

Credit Sales Revenue $133,300

To record the sale of goods on credit and for cash.

Debit Cash $106,400

Credit Accounts Receivable $106,400

To record the cash receipts on account.

Debit Bad Debts Expense $990

Credit Accounts Receivable $990

To write-off uncollectible accounts.

Debit Cash $800

Credit Bad Debts Expense $800

To record the recovery of previously written off accounts.

2. Allowance Method:

Debit Accounts Receivable $122,000

Debit Cash $11,300

Credit Sales Revenue $133,300

To record the sale of goods on credit and for cash.

Debit Cash $106,400

Credit Accounts Receivable $106,400

To record the cash receipts on account.

Debit Allowance for Uncollectible Accounts $990

Credit Accounts Receivable $990

To record the write-off of uncollectible accounts.

Debit Accounts Receivable $800

Credit Allowance for Uncollectible Accounts $800

To reinstate the recovery of previously written off accounts.

Debit Cash $800

Credit Accounts Receivable $800

To record the recovery of previously written off accounts.

Explanation:

a) Data and Analysis:

1. Direct write-off method:

Accounts Receivable $122,000 Cash $11,300 Sales Revenue $133,300

Cash $106,400 Accounts Receivable $106,400

Bad Debts Expense $990 Accounts Receivable $990

Cash $800 Bad Debts $800

2. Allowance Method:

Accounts Receivable $122,000 Cash $11,300 Sales Revenue $133,300

Cash $106,400 Accounts Receivable $106,400

Allowance for Uncollectible Accounts $990 Accounts Receivable $990

Accounts Receivable $800 Allowance for Uncollectible Accounts $800

Cash $800 Accounts Receivable $800

Risk assessment is an evaluation of the PPS supported by a number of analysis methodologies, including :__________.

Answers

Answer:

Threat analysis Consequence analysis Event and Fault tree analyses Vulnerability analysis

Explanation:

Threat Analysis

Involves the identification of areas of the system in question that are vulnerable to risk and then identifying what those risks are.

Consequence Analysis

With consequence analysis, the possible effects of the risks identified will be analyzed to see how much damage they can cause.

Event and Fault tree analyses

Here a tree is used to show all of the possible effects of a risky activity failing. It is used to find out the cause of the worst case scenario.

Vulnerability analysis

As the term implies, vulnerability analysis is done to see which parts of a system are at risk and how vulnerable they are to this risk and then ranking these vulnerabilities so that they can be prioritized.

Supriya invested $14,320 in a highly rated ETF. At the end of four years, she had $18,434. What was her annual effective yield on this investment

Answers

Answer:

6.517%

Explanation:

Present Value PV = $14,320

Future Value FV = $18,434

Number of period Nper = 4

Annual effective yield = Rate(Nper, Pmt, Pv, -Fv)

Annual effective yield = Rate(4, 0, 14320, -18434)

Annual effective yield = 0.06517

Annual effective yield = 6.517%


The table below pertains to a small agricultural economy where the typical consumer's basket
consists of 10 pounds of apples and 20 pounds of oranges. If 2017 is the base year, then the CPI
for 2018 was?

Year
Price of Apples
Price of Oranges
2017
$2.0 per pound (Apples)
$2.00 per pound (Oranges)
2018
$1.5 per pound (Apples)
$3.00 per pound (Oranges)

A) 125.0
B) 100.0
C) 95.0
D) 110.0

Answers

Answer:

125

Explanation:

Given the table:

Year

Price of Apples

Price of Oranges

2017

$2.0 per pound (Apples)

$2.00 per pound (Oranges)

2018

$1.5 per pound (Apples)

$3.00 per pound (Oranges

Consumer price index is obtained using the formular :

CPI = (Cost of market basket In current period / Cost of market basket in base period) * 100

Current period (2018):

Cost of 10 pounds of apple and 20 pounds of oranges :

($1.5 * 10) + ($3 * 20) = $15 + $60 = $75

Base year (2017)

Cost of 10 pounds of apple and 20 pounds of oranges :

($2 * 10) + ($2 * 20) = $20 + $40 = $60

Hence,

CPI = ($75 / $60) * 100

CPI = 1.25 * 100

CPI = 125

If the substitution effect of the real interest rate on saving is larger than the income effect of the real interest rate on saving, then a rise in the real interest rate leads to a ________ in consumption and a ________ in saving, for someone who's a lender.

Answers

Answer:

rise, fall

Explanation:

In the case when the subsitution effect with respect to the real rate of interest should be saved and more than the income effect on the real rate of interest so if there is an increased in the real rate of interest so there is an increase in the consumption also there is the fall in the savings

Also, if there is a more income effect, the consumption should rise and the savings would decline

Therefore the rise and fall should be considered to fill the blanks

3. The USD depreciates 2% versus the JPY. The USD appreciates 1% versus the MXN. What is the approximate appreciation or depreciation we might see in the MXN/JPY cross exchange rate

Answers

Answer:

The approximate appreciation or depreciation we might see in the MXN/JPY cross exchange rate is 3%.

Explanation:

The approximate appreciation or depreciation we might see in the MXN/JPY cross exchange rate can be stated using the folowing 3 steps.

Step 1. State the initial exchange rates of the currency pairs.

Let first assume the initial exchange rates are as follows:

USD1 = JPY1

USD1 = MXN1

Therefore, we have the initial cross rate as follows:

MXN1 = USD1 = JPY1

MXN1 = JPY1

Step 2. Determine the new exchange rates

The new exchange rates can be determined as follows:

When the USD depreciates 2% versus the JPY, this implies that USD1 * (100% + 2%) = USD1.02 has to be exchanged for JPY1. Therefore, we now have:

USD1.02 = JPY1, or

USD1 = JPY1/1.02

USD1 = JPY0.98

Also, when The USD appreciates 1% versus the MXN, this implies that USD1 * (100% - 1%) = USD0.99 has to be exchanged for MXN1. Therefore, we now have:

USD0.99 = MXN1, or

USD1 = MXN1/0.99

USD1 = MXN1.01

Therefore, we have the new cross rate as follows:

MXN1.01 = USD1 = JPY0.98

MXN1.01 = JPY0.98

MXN1.01 / 1.01 = JPY0.98/1.01

MXN1 = JPY0.97, or

MXN1/0.97 = JPY0.97/0.97

MXN1.03 = JPY1

Therefore, the new exchange rates are as follows:

USD1.02 = JPY1

USD0.99 = MXN1

MXN1.03 = JPY1

c. Determination of appreciation or depreciation we might see in the MXN/JPY

Percentage of depreciation of MXN against JPY = ((Initial MXN/JPY - New MXN/JPY) / Initial MXN/YPY) * 100 = ((1.03 - 1) / 1) * 100 = 3%

Since the percentage of depreciation of MXN against JPY is 3%, this also implies that the percentage of appreciation of JPY against MXN is 3%.

Therefore, the approximate appreciation or depreciation we might see in the MXN/JPY cross exchange rate is 3%.

An investor purchases a 15-year, $1,000 par value bond that pays semiannual interest of $40. If the semiannual market rate of interest is 5%, what is the current market value of the bond

Answers

Answer:

Bond Price​= $846.3

Explanation:

Giving the following information:

YTM= 0.05

Maturity= 15*2= 30 semesters

Par value= $1,000

Coupon= $40

To calculate the price of the bond, we need to use the following formula:

Bond Price​= cupon*{[1 - (1+i)^-n] / i} + [face value/(1+i)^n]

Bond Price​= 40*{[1 - (1.05^-30)] / 0.05} + [1,000 / (1.05^30)]

Bond Price​= 614.90 + 231.38

Bond Price​= $846.3

If two firms are identical in all respects except that one has more of the fixed input capital than another, the marginal product curve for the firm with more capital: Group of answer choices will lie above the marginal product curve for the firm with less capital. must equal the marginal product curve for the firm with less capital. will lie below the total marginal curve for the firm with less capital. will show no diminishing marginal returns.

Answers

Answer: will lie above the marginal product curve for the firm with less capital.

Explanation:

Capital is needed to produce goods and services and ideally speaking, when more capital is invested, more goods and services will be able to be produced because more should bring in more.

It is the same case here, if the companies are similar in everything except capital invested, the company with more capital will be able to produce more goods and services which will lead to their marginal product curve lying above the marginal product curve of the company with less capital.

Compute a three-period moving average forecast given demand for shopping carts for the last five periods. (Round all your answers to two decimal points.) Period Demand 1 58 2 54 3 60 4 53 5 63

Answers

Answer:

Computation of a Three-Period Moving Average Forecast

Period  Demand   3-period moving average

1                58

2               54

3               60          57.33

4               53          55.67

5              63           58.67

Explanation:

a) Data and Calculations:

Period  Demand   3-period moving average

1                58

2               54

3               60          57.33 (58 + 54 + 60)/3

4               53          55.67 (54 + 60 + 53)/3

5              63           58.67 (60 + 53 + 63)/3

b) The three-period moving average is computed by summing the demand for periods 1, 2, and 3 and dividing it by 3.  The result becomes the moving average for period 3.  This process is repeated by eliminating the first one and adding the next number until the end.

11. (-/1 Points] DETAILS BRECMBC9 5.11.010.
MY NOTES
Set up and solve an equation for the following business situation.
Pitt's Pit Stop sold $16,003.50 worth of gasoline yesterday. Regular sold for $3.30 a gallon and premium sold for $3.45 a gallon. If the station sold 370 more gallons of regular than premium, answer the
following questions.
(a) How many gallons of each type of gasoline were sold?
regular
gal
premium
gal
(b) If the profit on regular gas is $0.15 per gallon and on premium is $0.18 per gallon, what was the station's total profit (in dollars)?
$

Answers

Answer:

2190 ; 2560 ;

$778.2

Explanation:

Total worth of gasoline sold = 16003.50

Cost of regular = 3.30

Cost of premium = 3.45

Let :

premium Gallon sold = x

Regular gallon sold = 370 + x

Hence, mathematically;

(3.45*x) + (3.30 * (x + 370)) = 16003.50

3.45x + 3.30x + 1221 = 16003.50

6.75x = 16003.50 - 1221

6.75x = 14782.5

x = 14782.5 / 6.75

x = 2190

Premium Gallon sold = 2190 gallons

Regular gallon sold = 2190 + 370 = 2560 gallons

Profit per regular gallon sold = $0.15

Progit per premium Gallon sold = $0.18

Total profit = (2190 * 0.18) + (2560 * 0.15) = $778.2

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