Determine the combined accumulated amount in accounts

Assignment Help Financial Management
Reference no: EM131937615

1. At the beginning of each year for 16 years, $3,060 are deposited into Account A, earning an annual effective rate of 5.2% interest. At the end of each year, the interest earned is withdrawn and placed in Account B, earning an annual effective rate of 7.5% interest. Determine the combined accumulated amount in Accounts A and B at the end of 16 years.

2. A firm sells 60,000 units of their product. Each unit has a selling price of $55 and a variable cost of $25. The firm also has fixed costs of $800,000 and interest expense of $50,000.

What is the total Contribution Margin for this firm?

Reference no: EM131937615

Questions Cloud

What are the values that characterize public health : What are the values that characterize public health in the United States or in your home country? Support your answer with two (2) examples of the values.
What will happen to nominal wages : 1. Assume an economy enters a recession. According to neoclassical theory:
Analyse current accounting issues : Analyse current accounting issues and communicate your theoretical understanding to your professional colleagues and your clients. For this assignment assume
Good tool to use for government : People always talk about outdated tools and rules from our government. DO you believe this one is in that category of needing a change or not to be used at all?
Determine the combined accumulated amount in accounts : Determine the combined accumulated amount in Accounts A and B at the end of 16 years. What is the total Contribution Margin for this firm?
How is the theme developed in the first half of the novel : Select one theme and/or central conflict that stands out to you in the first half of the novel. How is this theme developed in the first half of the novel?
What is the present value of the future cash flows : What is the value of the benefits associated with this project? Otherwise stated, what is the Present Value of the future cash flows?
Why do you think marriage now shares similar feelings : Why do you think marriage now shares similar feelings and views as it did in past or is marriage something now totally different than what is was in the past?
What is the degree of combined leverage for firm : A firm sells 60,000 units of their product. Each unit has selling price of $55 and a variable cost of $25. What is the Degree of Combined Leverage for firm?

Reviews

Write a Review

Financial Management Questions & Answers

  Use to generate funding liquidity in times of stress

Describe 2 strategies that a bank can use to generate funding liquidity in times of stress.

  The capital budgeting aspects of these projects

Your company Portfolio Manager is convening a review board in the first calendar quarter to consider three projects. You have been asked to provide recommendations with respect to the capital budgeting aspects of these projects. Project sponsors have..

  Considering replacing existing machine

Grind Co. is considering replacing an existing machine. The new machine is expected to reduce labor costs by $88,000 per year for 5 years. Depreciation on the new machine is $58,000 compared with $44,000 on the old machine. In addition, inventory wil..

  What day does this stock begin trading ex dividend

What day does this stock begin trading ex dividend? What is the last day that Kathy can purchase the stock (trade date) and still receive the dividend?

  Discounted payback period

An investment project costs $10,000 and has annual cash flows of $2,850 for six years. What is the discounted payback period if the discount rate is zero percent? What is the discounted payback period if the discount rate is 5 percent? What is the di..

  What exchange rate will you break-even

The current spot exchange rate is $1.55 = €1.00 and the three-month forward rate is $1.60 = €1.00. Consider a three-month American call option on €62,500 with a strike price of $1.50 = €1.00. If you pay an option premium of $5,000 to buy this call, a..

  Tupperware party host was frustrated at her attempts

A Tupperware party host was frustrated at her attempts to get more people to host sales parties for her.

  Calculate the resulting dividend payout ratio

Apply the residual theory to determine what? dividends, if?any, can be paid? out, and calculate the resulting dividend payout ratio.

  How has foreign currency translation changed in the us

How has foreign currency translation changed in the United States?What factors have contributed to these changes?

  What is the payback for buying this franchise

He believes that if he runs the business effectively, he can generate a cash flow of $100,000.00 per year. What is the payback for buying this franchise?

  Repurchasing all of the outstanding shares

ACME is a very cyclical type of business which is reflected in its dividend policy. The firm pays a $2.00 a share dividend every other year. The last dividend was paid last year. Five years from now, the company is repurchasing all of the outstanding..

  The company uses straight voting

After successfully completing your corporate finance class, you feel the next challenge ahead is to serve on the board of directors of Schenkel Enterprises. Unfortunately, you will be the only person voting for you. If Schenkel has 395,000 shares out..

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd