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4 years ago

A letter of credit:

Business

1 answer:

torisob [31]4 years ago

8 0

Answer:

d. Provides a guarantee of payment from the buyer, reducing the credit risk to the seller

Explanation:

A letter of credit is a document that guarantees a seller of payment from the buyer. It is drafted and issued by a bank assuring the seller of timely and full payment. A letter of credit is applied mostly in international trade where the buyer and seller hardly meet or know each other.

Banks issue a letter a credit against cash or other securities. Should the buyers fail to make payment, a letter of credit assures the seller that the bank will take responsibility for the payment. Banks usually charge a fee for issuing letters of credit.

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In 2002, the annual price of oil was $24.36. As of late July 2006, the annual price of oil was $62.07. The percentage increase i

juin [17]

Answer:

b. oil prices increased faster than real GDP, but real GDP still grew at a healthy pace.

Explanation:

In this example, we compare the annual price of oil and the annual increase in GDP. When we look at the two, we can see that oil prices increased faster than real GDP. Nevertheless, we can also see that GDP still grew at a healthy pace.

GDP refers to Gross Domestic Product. This concept describes the monetary value of all good and services produced within a country's borders in a certain time period. GDP does not describe all the specific economic conditions of a country. However, it is still a useful measure for politicians and researchers in order to estimate the relative health of a country's economy.

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4 years ago

iRobot Company is analyzing two machines to determine which one it should purchase. Whichever machine is purchased will be repla

zimovet [89]

Answer:

Machine A should be purchased because it has a lower equivalent annual cost . Hence, it is cheaper.

Explanation:

Equivalent Annual cost is the Present Value of the total cost over the investment period divided by the appropriate annuity factor.

Step 1 : Equivalent Annual cost of Machine A

PV of cash flows

PV of purchase cost = 487,000

PV of annual operating cost of $29,000

= 29,000× (1-(1+0.14)^(-6))/0.14

= 112,771.35

Total PV = 487,000 + 112,771.35= 599,771.35

Equivalent annual cost = 599,771.35 /3.889

Equivalent annual cost = 154,235.70

Step 2: Equivalent Annual cost of Machine B

PV of purchase cost = 315,000

PV of annual operating cost of $51,200

= 51,200× (1-(1+0.14)^(-4))/0.14

= 149,182.07

Total PV = 315,000+ 149,182.07

= 464,182.07

Equivalent annual cost = 464,182.07/2.9137

Equivalent annual cost = 159,309.51

Step 3: Compare equivalent Annual cost

Comparing the two equivalent costs, we conclude that Machine A should be purchased because it has a lower equivalent annual cost and therefore it is cheaper.

8 0

3 years ago

When you were born, your dear old Aunt Minnie promised to deposit $1,000 into a savings account, bearing a 5% effective annual r

seraphim [82]

Answer: $34,502.85

Explanation:

The constant deposits are considered annuities.

The value at the end of 22 years is the future value of the annuity.

Future value of annuity = Annuity * ( (1 + rate)^number of years - 1 ) / rate

= 1,000 * ( ( 1 + 5%) ²² - 1) / 5%

= $38,505.21

Then subtract the future values of the deposits that your grandmother missed.

For the fifth birthday, the future value term will be 22 - 5 = 17 years

For the eleventh, the future value term will be 22 - 11 = 11 years

The amount in the account is:

= 38,505.21 - (1,000 * 1.05¹⁷) + (1,000 * 1.05¹¹)

= $34,502.85

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3 years ago

True False There is no exact formula an employee should use to determine the number of deductions to take.

Anit [1.1K]

I think its true...........................

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3 years ago

A local ice-cream parlor has 100 customers in the "rush" hour between 5PM and 6PM (assume that the customers arrive according to

WITCHER [35]

Answer: 36 seconds.

Explanation:

Based on the information given in the question, the Taktzeit for the ice-cream scoopers will be calculated thus:

First and foremost, Taktzeit refers to the time taken between the beginning of production for one unit and the beginning of the next unit.

From the information given, the available Time is 1 hour which can be converted to secunds and this will be:

1 hour = 3600 seconds

Hourly Demand = 100

Then, the takzeit will be:

= 3600/100

= 36 seconds

5 0

3 years ago