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How do you calculate the capital lease obligation?
When you book the capital lease, record the asset at its fair market value or the present value of minimum lease payments, whichever is less. The capital lease obligation is recorded at the same amount. Minimum lease payments include all rental payments required during the term of the lease plus any residual value guaranteed by the lessee. They also include any payment the lessee must make for not renewing or extending the lease, including a requirement to purchase the asset. They do not include any guarantee of the lessor's debt by the lessee, contingent rentals, or any penalty for which the term of the lease has been extended. They also do not include the portion of the rent payments which represent executory costs, such as insurance, taxes, and maintenance, and any related profit. The interest rate used to calculate the present value of the minimum lease payments is normally your incremental borrowing rate (the interest rate you would pay to borrow a similar amount of money for a similar length of time), unless you know the lessor's implicit interest rate for the lease and that is lower than your incremental borrowing rate. Sources: SFAS No. 13; RIA Checkpoint
What is the distinction or differences between an incremental cost and sunk cost?
incremental cost are defined as the change in overall cost that result from particular decision making. it include both fixed cost and veriable cost. sunk cost are those cost which are made once and for all can't be altered incremental or decreased by varying the rate of output, nor can they be recovered. for example - once it is decided to make incremental investment expenditure and the fund are allocated and spend
How do you calculate common fixed expense not traceable?
The company's sales manager believes that sales in the Central geographic market could be increased by 15% if monthly advertising were increased by $25,000. Calculate the incremental net operating income.
How do I calculate compound average growth rate using excel?
use the rate function
How do you calculate Gross rate from net rate?
add the number of women who died in her reprodution period in net reprodution rate.
How can you calculate Incremental working capital investment rate?
Incremental net working capital investment rate = Incremental working capital investment / Incremental sales.
How do you calculate the capital lease obligation?
When you book the capital lease, record the asset at its fair market value or the present value of minimum lease payments, whichever is less. The capital lease obligation is recorded at the same amount. Minimum lease payments include all rental payments required during the term of the lease plus any residual value guaranteed by the lessee. They also include any payment the lessee must make for not renewing or extending the lease, including a requirement to purchase the asset. They do not include any guarantee of the lessor's debt by the lessee, contingent rentals, or any penalty for which the term of the lease has been extended. They also do not include the portion of the rent payments which represent executory costs, such as insurance, taxes, and maintenance, and any related profit. The interest rate used to calculate the present value of the minimum lease payments is normally your incremental borrowing rate (the interest rate you would pay to borrow a similar amount of money for a similar length of time), unless you know the lessor's implicit interest rate for the lease and that is lower than your incremental borrowing rate. Sources: SFAS No. 13; RIA Checkpoint
The interest rate charged to banks borrowing from the Federal Reserve is known as the?
Repo rate
Is high interest rate good or bad?
That depends on whether or not you're lending or borrowing. Lending = good Borrowing = bad
A borrower is often confrented with a stated interest rate and an effective interest rate What is the difference and which one should a financial manager recognize as the true cost of borrowing?
A stated interest rate is the rate that is available when you are applying. An effective interest rate is the rate that has been applied to the loan. The true cost of borrowing is the effective interest rate.
The federal reserve can change the interest rate to help the economy. What is the interest rate?
the cost of borrowing money
The Federal Reserve can change the interest rate to help the economy What is the interest rate?
the cost of borrowing money
What is Is the percentage of interest you must pay for borrowing money.?
The Intest rate
What are interest rate?
Extra money you pay back for the priveledge of borrowing it.
What is the money rate?
There is no single "money rate". There are rates of exchange between the currencies of most countries. These are dynamic rates and change continuously. You can find reasonably up-to-date rates from various currency exchange rate websites.Then there are interest rates for borrowing and lending. Interest rates for borrowing will depend on what you are borrowing for, how long you are borrowing for and your credit-worthiness. The rate of interest that you might get for saving depends on the amount and the period.All these rates depend on the state of the economy and the expected development in the economy over the period in question.
What is the formula to calculate the rate of osmosis?
how do you calculate the rate of osmosis
What kind of borrowing rates might a business get compared with an individual?
Borrowing rates a business might get compared with an individual are usually higher. The rate differs long with the risk one is willing to take. To put it more clearly : if you put in more financial risk, you will get in return a higher borrowing rate.
