Answer:
4.87%
Explanation:
In this question , we are asked to calculate the appropriate after-tax cost of new debt for the firm to use in capital budgeting analysis.
PMT = 1000*7% = 70 (indicates the amount of interest payment)
Nper = 10 (indicates the period over which interest payments are made)
PV = 966 (indicates the present value)
FV = 1000 (indicates the future/face value)
Rate = ? (indicates the cost of debt)
After Tax Cost of Debt = Rate(Nper,PMT,PV,FV)*(1-Tax Rate) = Rate(10,70,-966,1000)*(1-.35) = 4.87%
Answer:
Variance of the return = 0.01983
Explanation:
= Σ
/ N - 1
Mean return = 17.88% + -5.16% + 20.39% = 11.0367%
Variance = [(17.88% - 11.0367%)2 + (-5.16% - 11.0367%)2 + (20.39% - 11.0367%)2] /(3 - 1)
Variance = [0.004683 + 0.026233 + 0.008748]/2
Variance = 0.01983
Answer: Jasper's net purchase price unit is $357.
Since Jasper orders in large quantities, Japser is eligible for the trader's discount at 30%.
So, the price per unit will be:

Shipping costs are charged by the shipper and Jasper doesn't get any discounts from the shipper. So, we add shipping costs per unit to the discounted price per unit to arrive at the purchase price per unit.


The first answer is is outsourcing as the product is beign made in a foreign country and they do this to reduce production cost, where they do not have to gather raw materials for themselves.