Fairway's april sales forecast projects that 7,400 units will sell at a price of $11.90 per unit. the desired ending inventory i
1 answer:
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T-1:
Table-1 vide annex
Applying EAC formula
c = \frac{r(NPV)}{(1-(1+r)^{-n} )}
c: equivalent annuity cash flow
NPV: Net present value
r: rate per period
n: number of periods
we have
c = $ - 98 982,63
T-2
Table-2 vide annex
Applying EAC formula
c = \frac{r(NPV)}{(1-(1+r)^{-n} )}
c: equivalent annuity cash flow
NPV: Net present value
r: rate per period
n: number of periods
we have
c = - $ 97 511.17
Answer:
Future value of an annuity
Explanation:
It is the amount of a set of continuous installments up to a certain future date. It considering a fixed rate of return or Periodical payments. A higher interest rate provides a higher benefit of continuous payment.
Future value of an annuity =
Where, p = payment per month
r = Rate of interest
n = number of periodic payment