Answer: Option A
Explanation: In simple words, backward induction refers to the process under which an individual starts analyzing a performance from the end results and go backward to the steps to determine where actually the actions went wrong.
This technique is generally used for analyzing complex subjects which requires high technology or knowledge. It helps the individuals to determine what actions should be rectified in future so that same problems would not occur again.
In the given case, Elly is willing to analyze the whole subject by starting right from the results. Hence we can conclude that she is using backward induction.
Answer: $16,614.78
Explanation:
As you are making a constant deposit every year beginning immediately, this is an Annuity due.
The value in 3 years will be:
= Amount deposited * (1 + i) * (( 1 + i) ^n - 1) / i
= 5,000 * (1 + 5.2%) * (( 1 + 5.2%)³ - 1) / 5.2%
= $16,614.78304
= $16,614.78
Answer:
d. $80 per machine hours
Explanation:
The computation of the overhead rate is shown below:
Overhead rate = Estimated total overhead cost ÷ total machine hours
= $16,000,000 ÷ 200,000 hours
= $80 per machine hours
The overhead rate is come by dividing the estimated total overhead rate by the total machine hours
All the other information that is mentioned is not considered. Hence, ignored it
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Answer:
d. $44,161
Explanation:
The computation is shown below:
The present value of the periodic interest to be paid on the bonds is
= Face amount × interest rate × present value of an annuity at 6% for 10 years
= $100,000 × 6% × 7.36009
= $44,161
Refer to the present value of an annuity table
On a semiannual basis, the interest rate is half and the time period doubles =. The same is applied in the above calculation.
