The fire chief of a medium-sized city has estimated that the initial cost of a new fire station will be $4 million. annual upkeep costs are estimated at $300,000. benefits to citizens of $550,000 per year and disbenefits of $90,000 per year have also been identified. use a discount rate of 4% per year to determine if the station is economically justified by the conventional b/c ratio.

Neveready flashlights inc. needs $317,000 to take a cash discount of 3/15, net 70. a banker will loan the money for 55 days at an interest cost of $13,200. a. what is the effective rate on the bank loan? (use a 360-day year. do not round intermediate calculations. input your answer as a percent rounded to 2 decimal places.) b. how much would it cost (in percentage terms) if the firm did not take the cash discount but paid the bill in 70 days instead of 15 days? (use a 360-day year. do not round intermediate calculations. input your answer as a percent rounded to 2 decimal places.) c. should the firm borrow the money to take the discount? no yes d. if the banker requires a 20 percent compensating balance, how much must the firm borrow to end up with the $317,000? e-1. what would be the effective interest rate in part d if the interest charge for 55 days were $7,200?

The quinoa seed is in high demand in wealthier countries such as the u. s. and japan. approximately 97% of all quinoa production comes from small farmers in bolivia and peru who farm at high elevations—8,000 feet or higher. the seed is considered highly nutritious. mostly grown and harvested in bolivia and peru, and sold to markets in other countries, the seed is now considered an important for these nations. the governments of bolivia and peru are hopeful that this product will increase the quality of life of their farmers.

Mauro products distributes a single product, a woven basket whose selling price is $15 and whose variable expense is $12 per unit. the company’s monthly fixed expense is $4,200. required: 1. solve for the company’s break-even point in unit sales using the equation method. 2. solve for the company’s break-even point in dollar sales using the equation method and the cm ratio. (do not round intermediate calculations. round "cm ratio percent" to nearest whole percent.) 3. solve for the company’s break-even point in unit sales using the formula method. 4. solve for the company’s break-even point in dollar sales using the formula method and the cm ratio. (do not round intermediate calculations. round "cm ratio percent" to nearest whole percent.)