Answer:
$6414.27
Explanation:
P= C ( 1+r )^t
Where C = $2000, r =6% and t = 20years
P = 2000 ( 1 + 6/100 )^20
P = 2000 ( 1+0.06 )^20
P = 2000 ( 1.06 )^20
P = 2000×3.20713
P = 6414.2709
P = $6414.27
Answer:
It is more profitable to continue processing.
Explanation:
Giving the following information:
The number of units= 1,250
It can be sold now for $67,500 to another manufacturer.
Alternatively, Holmes can process the units further at an incremental cost of $250 per unit. If Holmes processes further, the units can be sold for $375 each.
<u>The $50,000 is a sunk cost, meaning that it has already happened. It shouldn't be taken into account.</u>
Sell as it is:
Income= $67,500
Continue production:
Income= 1,250*(375 - 250)= $156,250
It is more profitable to continue processing.
Just like an insurance policy, a CDS allows purchasers to buy protection against an unlikely event that may affect the investment. ... During the financial crisis of 2008, the value of CDS was hit hard, and it dropped to $26.3 trillion by 2010 and $25.5 trillion in 2012.
Answer: This business is a Private Corporation.
Explanation: As the name implies, a private corporation is an organization that is privately owned. Private corporations are capable of issuing stock and having shareholders, but their shares do not trade on public exchanges.
We can see that the company that is described in the scenario above possesses the attributes mentions in the definition.
The company is private because it has been in the family for five generations, also, the managers in the business are hired from within the family.