--%>
Assignment Help - homework help

Avoidable Interest

The book says "avoidable interest is the amount of interest cost during the period that a company could theoretically avoid if it had not made expenditures for the asset." This makes it sound like avoidable interest is the total amount of interest paid for an asset. I know it's not but I was wondering if maybe someone could explain it a little better. Thanks.

   Related Questions in Financial Accounting

  • Q : Fisher Effect and Purchasing Power

    Explain and discuss the significance of Fisher Effect and the Purchasing Power Parity theories to a foreign exchange dealer in the merchant bank?

    		•
  • Q : Motivations for counterparty to enter

    Specify the basic motivations for the counterparty to enter into the currency swap.

    		•
  • Q : Calculating Average Cost 1 You're

    1 You're trying to save to buy a new $200,000 Ferrari. You have $40,000 today that can be invested at your bank. The bank pays 5.5 percent annual interest on its accounts. How long will it be before you have enough to buy the car? 2 Although appealing

    		•
  • Q : Progressives The progressives were

    The progressives were fascinated in “making people better.” What types of things were they fascinated in changing and who were they aiming their changes at?

    		•
  • Q : Analyse the ramifications for

    HOMEWORK ASSIGNMENT FOR ADMINISTRATIVE LAW"The problem in today's complex legal environment is that the law is not able to be divided conveniently into segments. Any apparently discrete sect

    		•
  • Q : REDUMPTION OF DEBENTURS WHAT IS

    WHAT IS REDUMPTION? AND WHAT ARE THE CONDITIONS?

    		•
  • Q : Calculate the PV You expect the price

    You expect the price of the stock 3 years from now to be $119.04 (i.e., you expect P ˆ   3  ?? = $119.04). Discounted at a 10% rate, what is the present value of this expected future stock price? In other words, calculate the PV of $119.04.&nb

    		•
  • Q : Discuss to what extent does risk and

    to what extent does risk and term structure affects interest rates of financial instruments.

    		•
  • Q : Contingent Liabilities Explain the term

    Explain the term Contingent Liabilities?

    		•
  • Q : Link financial accounting and

    is there a link between financial accounting and programmed decision

    		•