Answer:
$3,208
Explanation:
The computation of the future value is shown below;
As we know that
Future valie = Present value × (1 + rate of interest)^number of years
where
Present value is $2,500
Rate of interest = 2.5% ÷ 4 = 0.625%
And, the time period is = 10 × 4 = 40
So, the future value is
= $2,500 × (1 + 0.625%)^40
= $3,208
Answer:
an overall low-cost provider strategy.
Explanation:
Competitive advantage can be defined as conditions, factors or circumstances that allow a business firm (organization) to manufacture finished goods or services better and perhaps cheaper than other (rival) firms in the same industry. Thus, it's responsible for putting a business firm in a superior or more favorable position than rival firms.
This ultimately implies that, a competitive advantage has a significant impact on a business because it increases its level of sales, revenue generation and profit margin when compared to rival firms in the same industry.
A overall low-cost provider strategy is a strategic business model that's typically focused on a broad customer base (segment) while still making profit by providing low-cost goods and services to the customers, as well as underpricing rivals in the same industry.
This ultimately implies that, it is a business strategy that involves lowering the price of goods and services in order to stimulate demand, generate more revenue, draw more customers and gain a competitive advantage over competitors or rivals in the same industry.
Hence, when a company strives to achieve lower overall costs than its rivals in the same industry and appeals to a broad spectrum of customers, it is considered to pursue an overall low-cost provider strategy.
Answer:
274.7%
Explanation:
The total amount that Eric will borrow will be = 43114311+33503350+13391339 = 90009000.
Now to calculate WACC, we will apply the WACC formula:
WACC = (43114311/90009000)*0.66 + (33503350/90009000)*0.88 + (13391339/90009000)*14.14
Hence,
WACC = 274.74%
The solution was very simple, we just applied the WACC formula by taking the total amount of debt in the denominator of each of the loans taken and multiplied it by the interest rate on which it is taken.
Hope this helps, although I think the values in the question are not correct, but nonetheless I have provide the correct solution according to the given values.
Thanks.
