Answer the Following Question(s)using the Information Below

question 62

Multiple Choice

Answer the following question(s) using the information below:
Carriage Ltd.manufactures baby carriages.The company has two divisions, Wheels and Assembly.Because of different accounting methods and inflation rates, the company is considering multiple evaluation measures.The following information is provided for the year just ended:
The company is currently using a 12% required rate of return.
-What are Wheels's and Assembly's residual incomes based on current values, respectively?

• A)$70,000; $28,500
• B)$94,000; $28,500
• C)$94,000; $70,000
• D)$28,500; $94,000
• E)$61,800; $70,000

Determine the number of payments or the duration required to repay a loan under various interest rates and compounding periods.

Identify the necessary rate of return to meet a specific financial goal.

Compare different investment or loan options based on their effective interest rates or returns.

Calculate the present value of a series of cash flows or an annuity.

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Definitions:

Precede

To come before something else in time, order, or position.

Demonstrably

Capable of being proven or shown through evidence or clear examples.

Ex Post Facto Design

An “after the fact” experimental design in which there is no control over experimental conditions.