Answer:
$2,282,700
Explanation:
Calculation to determine the cost of goods sold for the year
Using this formula
Cost of good sold=Cost of goods manufactured for 2020-(Dec. 31, 2019 Work in process inventory-Dec. 31, 2020Work in process inventory)
Let Plug in the formula
Cost of good sold=$2,422,700- ($160,000-$300,000)
Cost of good sold=$2,422,700- $140,000
Cost of good sold=$2,282,700
Therefore the cost of goods sold for the year is $2,282,700
Answer:
a-The net present value in dollars is 494939.0687.
b-1-The required return on franc flows is 11.72%.
b-2-The net present value in Francs is 519686.02.
b-3-The NPV in dollars as calculated from NPV in Francs is $494939.07
Explanation:
a
In order to find the solution, firstly the exchange rate for the 5 years is calculated. It is calculated using the formula:
Here
- EER is the expected exchange rate which is to be calculated
- CER is the current exchange rate which is 1.05
- GRD is the going rate of dollars which is 6% or 0.06
- GRF is the going rate of Francs which is 4% or 0.04
- t is the time in years.
From this exchange rate, the PV factor is calculated which is than used to find the present value and similarly net present value in total. The solution is provided in the attached Excel Sheet.
The net present value in dollars is 494939.07
b-1
The required rate on the Franc return is given as:
Here
- FRR is the franc return rate which is to be calculated
- DR is the dollar rate which is 14% or 0.14
- GRD is the going rate of dollar which is 6% or 0.06
- GRF is the going rate of Franc which is 4% or 0.04
So the value becomes:
The required return on franc flows is 11.72%.
b-2
Similar to part a, the solution is found for the return rate of 11.72 and the exchange rate is not required. The values are as indicated in the excel sheet attached.
The net present value in Francs is 519686.02.
b-3
In order to convert the Franc NPV to dollars, the exchange rate of 1.05SF is used which gives
Here
- NPV_dollars is the value of NPV which is to be calculated.
- NPV_francs is the value of NPV calculated in previous step which is 510686.02.
- ER is the exchange rate whose value is 1.05
So the equation becomes:
The NPV in dollars as calculated from NPV in Francs is $494939.07
The characteristics of a competitive market, and a monopolistically competitive market are:
- Price is equal to marginal cost - competitive market,
- Easy entry and exit - both
- Few sellers - neither
- Homogeneous product - competitive market,
<h3>How are competitive and monopolistically competitive markets related?</h3>
Both competitive and monopolistically competitive markets are easy to enter and exit from but only competitive markets have their pruice equal to their marginal cost.
The goods in a monopolistically competitive market is slightly variated while those in competive markets are homogenous.
Find out more on monopolistically competitive markets at brainly.com/question/25717627
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If they have experience in the sector and have all the needs machines, employees, money,..... then they would prefer to go to specialize and trade