Manufacturing more than there is demand means that the day when the demand stops, you will be left with a bunch of inventory you cant sell or get rid of
Answer with Explanation:
Qualitative attributes would be the Quality of steel used, interior and exterior design of the car, additional features that it offers, etc.
These attributes are qualitative characteristics of cars because they give us feeling of superiority over other similar items. Hence the strength of steel used clearly reflects the strength of car, interior design gives comfort, exterior design increases sense of superiority, additional features that the car offers will give upperhand over other cars.
All these features of car are qualitative because these can not be measured in numbers. On the other hand, Quantitative attributes includes price of spare parts, car and mileage per litre.
Quantitative attributes are reflected in numbers and thus are more desicive in nature.
The net impact on its net income in 2020 resulting from a fluctuation in the value of the won is : $250 decrease in net income.
First step is to calculate the Discount on forward contract
Discount on forward contract=[($0.0035 − $0.0034) × 10 million
Discount on forward contract=$0.0001 × 10 million
Discount on forward contract= $1,000
Second step is to amortized the Discount on forward contract
Amortization of discount on forward contract=$1,000 / 4 months
Amortization of discount on forward contract=$250 per month
Based on the above calculation foreign exchange loss of the amount of $250 will be recognized on December 31, 2020.
Therefore the net impact on its net income in 2020 resulting from a fluctuation in the value of the won is a decrease of $250.
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The D. internal rate of return (IRR) <span>is the discount rate that equates the present value of the cash inflows with the initial investment.
This term refers to the profitability of a potential investment, meaning that it will show you how much an investment costs, and how much money you can possibly earn by predicting its future price and cost. It can also show you whether it is sensible to invest in something. </span>
