__________ is the operations management planning function that searches for quality material resources, finds the best suppliers
1 answer:
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Explanation:
Since the cash flows are given in the question for the Investment A and the Investment B
So, the present value could be find out by multiplying the each year cash inflows with its discounted factor i.e 9%
So that the present value could come
The discount factor should be computed by
= 1 ÷ (1 + rate) ^ years
The attachment is shown below:
Answer:
a) 39.304%
b) 67.91%
c) 14.17%
Explanation:
a. Given"
Offer terms = 1.8/10
Now,
The Effective annual interest rate is given as:
=
on substituting the respective values, we get
=
= 0.39304
or
= 39.304%
similarly,
b. for 2.8/10 net 30
Effective annual interest rate =
= 0.6791
or
= 67.91%
c. for 1.8/10 net 60
Effective annual interest rate =
= 0.1417
or
= 14.17%