Reference no: EM131133284
1. Van Buren Resources, Inc., is considering borrowing $100,000 for 182 days from its bank. Van Buren will pay $6,000 of interest at maturity, and it will repay the $100,000 of principal at maturity.
a. Calculate the loan's annual financing cost.
b. Calculate the loan's annual percentage rate.
c. What is the reason for the difference in your answers to parts a and b?
2. Determine the annual financing cost of forgoing the cash discount under each of the following credit terms:
a. 2/10, net 60
b. 1½/10, net 60 c. 2/30, net 60
d. 5/30, net four months (assume 122 days) e. 1/10, net 30
|
What were his main ideas about human nature
: What ideas/events helped shape his beliefs? What were his main ideas about human nature? What did he believe the role of the citizen in society was? And when did he believe society best functioned?
|
|
Answer the following questions for e business
: answer the following questions for e-Business- What is micromarketing and how can an online ecommerce company micro-segment their consumers using online data?
|
|
Consumer confidence disposable income and recessions
: Plot the level of the index of consumer sentiment against the growth rate of disposable income per person. Is the relationship positive?
|
|
Makes the pv of the future cash flows
: 1. The IRR for a project is the discount rate that: a. sets the PV of the projectAc€?cs
|
|
Calculate the loan annual financing cost
: 1. Van Buren Resources, Inc., is considering borrowing $100,000 for 182 days from its bank. Van Buren will pay $6,000 of interest at maturity, and it will repay the $100,000 of principal at maturity.
|
|
Discuss how the belief in the new economy
: Discuss how the belief in the New Economy, combined with the increase in stock prices, affected consumption spending.
|
|
Calculate the annual eva in a typical year
: NPV and EVA A project costs $2.5 million up front and will generate cash flows in perpetuity of $240,000. The firm's cost of capital is 9%. a. Calculate the project's NPV.
|
|
How did versailles symbolize authority of the french king
: In what ways did the new science of Copernicus, Brahe, Kepler, and Galileo challenge not only the Aristotelian cosmos--foundation of all medieval science--but also the claims of the church?
|
|
How these changes in expectations affect output today
: A new president, who promised during the campaign that she would cut taxes, has just been elected. People trust that she will keep her promise, but expect that the tax cuts will be implemented only in the future.
|