Answer: C. 7.3%
Explanation:
The yield rate is a weighted average of the yields over the years:
= [ (1 * 6%) + (2 * 7%) + (3 * 8%)] / ( 1 + 2 + 3)
= 44%/ 6
= 7.33%
= 7.3%
Answer:
The correct answer is (a)- Integrated cost leadership/differentiation.
Explanation:
Companies that integrate strategies instead of relying solely on a generic strategy are able to adapt quickly and learn new technologies. Products manufactured under the leadership of integrated costs-differentiation strategy are less distinctive than differentiators and the costs are not as low as the cost-leader, but combine the advantages of both approaches. A somewhat distinctive product that is mid-range in price can be a big attraction for customers than a cheap generic product or an especially expensive one.
a house, duh, clothing can be hung and stored, potato chips are bagged, a magazine is almost useless, but a house needs plants trimmmed and rooms cleaned and taking care of bugs and such
The probability of event B given that event A has already occurred is known as a CONDITIONAL PROBABILITY.
Conditional probability is written mathematically as: P[B/A], where P stands for probability.
Event A and B can be dependent or independent and this will have effect on the general formula of conditional probability, that is, the formula will change in form depending on the relationship between the two events.
Question:
Graded assignment(towards 15% Hw grade) Saved Help Save& Exit Submit Check my work Your landscaping company can lease a truck for $7,800 a year (paid at year-end) for 6 years. It can instead buy the truck for $38,000. The truck will be valueless after 6 years. The interest rate your company can earn on its funds is 7%. 10 points
What is the present value of the cost of leasing?
Answer:
Cost of lease = $37,179.01
Explanation:
Leasing is a finance arrangement where one party (the lessor) transfers the right to use an asset to another party (the leasse) in exchange for a rent.
The cost of a lease to the leasee is the present value of the future lease payment discounted at the cost of capital.
So using the present value of annuity formula, we can work out the cost of the lease arrangement as follow:
PV =A× (1- 1+r)^(-n)/r
PV- Present Value
r- interest rate
n- number of years
A- annual lease payment
PV -
A-7,800
r-7%
n-6
PV = 7,800× (1- (1.07)^(-6)/0.07 = 37,179.01
Present Value = $37,179.01
Cost of lease = $37,179.01
