Answer:
B. Increases the expected present value of lease cash flows to the owner
Explanation:
A lease option gives a right but not the obligation to the renter of the property to buy the said property at today's current market price upon the expiry of lease term.
Lease option is similar to an option contract, the difference being, here instead of securities, leased property serves as the underlying asset and instead of option premium, the renter pays a premium each year in addition to the rental charges.
Lease cash flows refer to the present value of future cash flows which the lessor/owner receives in the form of lease rentals plus the added premium each year.
The more the benefits under lease option clause, the higher the premium charged and thus, more would be the future receipts of owner which would increase the expected present value of lease cash flows to the owner.
Answer:
$519,799.59
Explanation:
Discount rate = R = 14.50%
Year Cash flows Discount factor PV of cash flows
1 218,000.00 0.873362 190,393.0131
2 224,000.00 0.762762 170,858.6793
3 238,000.00 0.666168 <u>158,547.9011</u>
Total of PV = NPV = <u> $519,799.59</u>
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Note:
Df = 1/(1+R)^Year
PV of cash flows = Cash flows x Df
<span>The largest cattle rancher in a given region will be unable to have a __________ when sufficient numbers of smaller cattle ranchers provide sources of competition.
Monoply
</span>
Answer:
1.$35,000
2.$6,300,000
Explanation:
The computation of Unit sales to earn the target income and Sales amount at required profit is given below:-
a. Contribution per unit = Unit sale price - Unit variable cost
= $180 - $135
= $45
Unit sales at required profit = (Sales cost + Required cost) ÷ Contribution per unit
= ($562,500 + $1,012,500) ÷ $45
= $1,575,000 ÷ $45
= $35,000
b. Sales amount at required profit = Unit sales at required profit × Unit sale price
= $35,000 × $180
= $6,300,000
<h2>
Lean Production Perspective</h2>
Explanation:
There are 6 Business management perspective. They are:
- An ethics perspective
- Strategic management perspective
- Enterprise risk management
- Corporate social responsibility perspective
- A process management perspective
- A leadership perspective
Here the Lean production perspective does not come under the business management perspective.
Lean production actually deals with cutting down of waste and whilst ensuring quality. This approach is basically a cost-cutting approach where it brings benefit to the business. This is one of the most efficient methods.
