Answer:
Explanation:
The main goal is to compare these two based on the same terms; present values. Find the present value of $500 today by discounting it using 10% interest rate over two years.
PV = FV/ (1+r)^n
where FV = Future value = $500
r = discount rate = 10% or 0.10 as a decimal
n = total duration of investment = 2
PV = $500/(1+0.10)^2
PV = $500/1.21
PV = $413.22
Since you are basing the decision on what you would rather pay, you would want a lower pay amount. The $425 is already in its present value terms and it is more expensive. Therefore, you would prefer to pay $500 in two years.
Transnational
Strategy
Venture to
achieve low-cost, mark up products across markets and to foster a flow of
skills between different subsidiaries. High cost pressures, high local
responsiveness pressures. Actually there are a four kinds of strategy; Global Standardization Strategy, Transnational Strategy,
International Strategy, Localization Strategy.
Answer:
Instructions are listed below.
Explanation:
Giving the following information:
Lindo Company incurs annual fixed costs of $80,000. Variable costs for Lindo’s product are $40 per unit, and the sales price is $64 per unit. Lindo desires to earn an annual profit of $40,000.
To calculate the sales in volume and dollars we need to use the break-even formula:
Break-even point (units)= (fixed costs + profit)/ contribution margin
Break-even point (units)= (80,000 + 40,000) / (64 - 40)= 5,000 units
Break-even point (dollars)= (fixed costs + profit)/ contribution margin ratio
Break-even point (dollars)= 120,000 / (24/64)= $320,000
Answer and Explanation:
Old equipment=2.5 mins per serving bowl
New equipment=1.5 mins per serving bowl
With old equipment, in one hour Eddy Jones can produce 60/2.5= 24 serving bowls
With new equipment, in one hour Eddy Jones can produce 60/1.5= 40 serving bowls
With old equipment, in 8 hours Eddy Jones can produce 24*8=192 serving bowls
With new equipment, in 8 hours Eddy Jones can produce 40*8=320 serving bowls
Therefore in 8 hours with new equipment Eddy Jones will produce 320-192= 128 more serving bowls than with old equipment.
Answer:
d. $248,000
Explanation:
beginning cash balance 27,000
operating activities 351,000
investing activities (420,000)
financing 250,000
cash generate during the year 181,000
ending cash balance 208,000
<u>Note:</u>
The information of the sale of land is contained with the investment activities.
The proceeds from sales are in the operating activities.
<u>We just need to calculate using the total for each activity.</u>
