Answer:
$1,952 (Positive NPV)
Explanation:
Year Annual CF ($) PV factor at 10.30% PV of Cash Flow ($)
1 17,000 0.90662 15,413
2 17,000 0.82196 13,973
3 17,000 0.74520 12,668
4 17,000 0.67561 11,485
5 17,000 0.61252 10,413
6 17,000 0.55532 9,441
7 17,000 0.50347 8,559
TOTAL 1.73554 81,952
Net Present Value (NPV) = Present value of annual cash flows - Initial Cost
Net Present Value (NPV) = $81,952 - $80,000
Net Present Value (NPV) = $1,952 (Positive NPV)
The retailer was asking the designers to agree to <u>Exclusive distribution</u>.
<u>Explanation:</u>
Exclusive distribution is characterized as the arrangement under which a participant is a supplier and provider. It specifies that the seller can not offer their service or item to some other group. It attaches the contract that the commodity must be distributed to an exclusive seller. The retailer asks developers for exclusive supply as per the situation specified in the discussion. Retailer does not want the jewelry design to be sold to any other outlet or retailer for successful sale. Thus agreement on this matter is suggested by the retailer.
Answer:
$147,500
Explanation:
Computation of Napa's dividends-received deduction
Napa is said to holds less than 20% stock interest in KLP Inc which means that the dividends received deduction in the case of dividends received from KLP would be 50%.
And in case of dividends received from Gamma, the dividends received deduction would be 100% reason been that KLP holds more than 80% of the stock interest in Gamma.
Hence:
Napa’s dividends-received deduction will be:
= ($55,000 x 50%) + $120,000
=$27,500 +$120,000
= $147,500
Therefore Napa's dividends-received deduction will be $147,500
Answer:
(C) Direct imitation and Substitution
Explanation:
As a leading guitar string producer Wound Up inc. has enjoyed a competitive advantage based on its proprietary coating that gives its strings a clearer sound and longer lifespan than uncoated strings. One of Wound Up's competitors, has recently developed a similar coating using less expensive ingredients, which allows it to charge a lower price than wound up for similar-quality strings. Therefore and consequently, Wound Up's competitive advantage is in danger due to direct imitation and substitution. As it has been very much obvious from the given data that Wound Up was enjoying superior position in the market based on the clearer sound and longer lifespan of its guitars, which was purely due to their signature coating which they used on the strings. When on its competitor has developed the same kind of coating but even at the lesser rates, then of course, they can enjoy much better position in the market and they can compete much effectively with the Wound UP, both in quality and price as well. This direct imitation and substitution can lead Wound Up losing its competitive advantage, therefore, either they can develop the same strings at the less process or they have to come up with something totally new, creative and unique in order to win this competition now.
