You company has just purchased some new computers using a 5-year bank loan of $71,000. The interest rate on the loan is 7 percent annually, and the loan calls for equal annual payments. Prepare an amortization schedule for the 5-year loan. (Do not round intermediate calculations and round your answers to 2 decimal places, e. g., 32.16. Leave no cells blank - be certain to enter "0" wherever required.) b. How much interest will your company pay in the third year? (Do not round intermediate calculations and round your answer to 2 decimal places, e. g., 32.16.) c. How much total interest will your company pay over the life of the loan? (Do not round intermediate calculations and round your answer to 2 decimal places, e. g., 32.16.)

Which of the following statements about the relationship between economic costs and accounting costs is true? multiple choice accounting costs are equal to or greater than economic costs. accounting costs must always equal economic costs. accounting costs are always greater than economic costs. accounting costs are always less than or equal to economic costs.

Engberg company installs lawn sod in home yards. the company’s most recent monthly contribution format income statement follows: amount percent of sales sales $ 80,000 100% variable expenses 32,000 40% contribution margin 48,000 60% fixed expenses 38,000 net operating income $ 10,000 required: 1. compute the company’s degree of operating leverage. (round your answer to 1 decimal place.) 2. using the degree of operating leverage, estimate the impact on net operating income of a 5% increase in sales. (do not round intermediate calculations.) 3. construct a new contribution format income statement for the company assuming a 5% increase in sales.

How should the environmental effects be dealt with when evaluating this project? the environmental effects should be ignored since the plant is legal without mitigation. the environmental effects should be treated as a sunk cost and therefore ignored. if the utility mitigates for the environmental effects, the project is not acceptable. however, before the company chooses to do the project without mitigation, it needs to make sure that any costs of "ill will" for not mitigating for the environmental effects have been considered in the original analysis. the environmental effects should be treated as a remote possibility and should only be considered at the time in which they actually occur. the environmental effects if not mitigated would result in additional cash flows. therefore, since the plant is legal without mitigation, there are no benefits to performing a "no mitigation" analysis.