What is the effective annual cost

Assignment Help Business Management
Reference no: EM131368007

Yonge Corporation must arrange financing for its working capital requirements for the coming year.

Yonge can (a) borrow from its bank on a simple interest basis (interest payable at the end of the loan) for 1 year at a 12 percent nominal rate; (b) borrow on a 3-month, but renewable, loan basis at an 11.5 percent nominal rate; (c) borrow on an installment loan basis at a 6 percent add-on rate with 12 end-of-month payments; or (d) obtain the needed funds by no longer taking discounts and thus increasing its accounts payable.

Yonge buys on terms of 1/15, net 60. What is the effective annual cost (not the nominal cost) of the least expensive type of credit, assuming 360 days per year?

Reference no: EM131368007

Questions Cloud

Relationship between decision making and leadership : Analyze the relationship between decision making and leadership? Explain how the behaviors of the health care team can be enhanced by managers who are facilitators versus managers who are order givers?
What would be the effective cost of the loan : The nominal annual rate on the loan was 11.25 percent. What is the true effective rate?- What would be the effective cost of the loan if the note required discount interest?
How do you prevent accidents in the workplace : How do you prevent accidents in the workplace? List and describe 5 ways. Essay of 350-500 words, including an introduction, body and conclusion.
Write the microprogram required to implement this sm chart : Convert the SM chart to the proper form by adding a minimum number of states to the given diagram. Make a suitable state assignment.
What is the effective annual cost : Yonge buys on terms of 1/15, net 60. What is the effective annual cost (not the nominal cost) of the least expensive type of credit, assuming 360 days per year?
Evaluate the effectiveness of the chosen theory : Identify a situation or circumstance in your practice setting where a concept from a healthcare theory is manifested. Evaluate the effectiveness of the chosen theory in that situation or circumstance. How will you apply this theory in other areas ..
Forecast demand for boxes of rubber gloves : A company uses simple exponential smoothing with  α = 0.1 to forecast demand for boxes of rubber gloves. The forecast for this week was 237 boxes and the actual demand was 205.
What is the effective annual interest rate of the lower cost : Alternatively, Masson could borrow from its bank on a 12 percent discount interest rate basis. What is the effective annual interest rate of the lower cost source?
What about when a ball is dropped from an airplane : Does the formula for falling bodies give accurate or inaccurate results when a feather is dropped? How about when a ball is dropped? What about when a ball is dropped from an airplane?

Reviews

Write a Review

Business Management Questions & Answers

  Maintain your competitive advantage in world markets

Your country of manufacture was experiencing a strong and appreciating currency against almost all other currencies, what options are available to you to maintain your competitive advantage in world markets?

  Contribute to organizational effectiveness

1. Which of the following would NOT contribute to organizational effectiveness?

  Explain tasks''s of strategic management

Evaluate AKA's performance on the following tasks's of strategic management a.developing a strategic vision b.setting objectives

  Organizational management productive failure1 sometimes

organizational management productive failure1. sometimes things go wrong and its not always a bad thing. discuss a time

  Business and traditional chinese beliefsa lot of chinese

business and traditional chinese beliefsa lot of chinese companies still hold firm to their traditional belief in how

  How will you prepare for the future of the workplace

How will you prepare for the future of the workplace? Your ability to see the big picture and think critically, always considering all factors and alternative explanations, will be the key to successfully navigating the workplace of the future

  Practice can optimize its financial condition

Discuss the ways in which a physician office practice can optimize its financial condition and benefit its hospital partner. Your response must be at least 200 words in length.

  Develop a precedence notation cpm network

Using the information given in figures shown, develop a precedence notation CPM network for the bridge project described. Certain logical relationships are implied by the bar chart that has been supplied to you by the field superintendent who has ..

  Could the company expand its listening posts and how

Identify what you believe are the company's "listening posts" (key opportunities) for getting feedback from the external environment. Could the company expand its listening posts? How

  Compare and contrast froth strategy and stability strategy

Compare and contrast froth strategy and stability strategy

  Define new technology always mean the end of old ways

Does the implementation of new technology always mean the end of old ways of doing things? What are the dangers of continuing to do things

  Conduct a needs assessment

Describe how you would conduct a needs assessment. Include a list of questions you would ask AND to whom you would ask them. REMEMBER: You are trying to determine what training needs are.

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