Consider a CMO with tranches A, B and a residual. The CMO is backed by a pool of fully amortizing fixed rate mortgages with monthly payments. Assume that there is a servicing fee and some anticipated prepayment. What is the correct formula for computing cash flows to the residual tranche? A. (Scheduled Payment) + (Prepayment) - (Servicing Fee) - (Cash Flow to Tranche A) - (Cash Flow to Tranche B)
B. (Scheduled Payment) + (Prepayment) - (Cash Flow to Tranche A) - (Cash Flow to Tranche B)
C. (Scheduled Payment) + (Prepayment) + (Servicing Fee) - (Cash Flow to Tranche A) - (Cash Flow to Tranche B)
D. (Scheduled Payment) + (Servicing Fee) - (Cash Flow to Tranche A) - (Cash Flow to Tranche B)

King fisher aviation is evaluating an investment project with the following case flows: $6,000 $5,500 $7,000 $8,000 discount rate 14 percent what is the discounted payback period for these cash flows if the initial cost is 15,000? what if the initial cost is $12,000? what if the cost is $16,000?

Ardmore farm and seed has an inventory dilemma. they have been selling a brand of very popular insect spray for the past year. they have never really analyzed the costs incurred from ordering and holding the inventory and currently fave a large stock of the insecticide in the warehouse. they estimate that it costs $25 to place an order, and it costs $0.25 per gallon to hold the spray. the annual requirements total 80,000 gallons for a 365 day year.a. assuming that 10,000 gallons are ordered each time an order is placed, estimate the annual inventory costs.b. calculate the eoq.c. given the eoq calculated in part b., how many orders should be placed and what is the average inventory balance? d. if it takes seven days to receive an order from suppliers, at what inventory level should ardmore place another order?

Which of the following is not a characteristic of a weak economy? a. a low employment rateb. a high inflation ratec. a decreased gdpd. a high unemployment rate