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Sophie [7]
3 years ago
10

If a company is given credit terms of 2/10, n/30, it should________.

Business
1 answer:
diamong [38]3 years ago
6 0

Answer:

(A) pay within the discount period and recognize a savings.

Explanation:

The given credit terms of 2/10, n/30 means

If the payment is paid within 10 days so 2% discount is given and the total credit period given is 30 days

Suppose we take an example

A buys the merchandise of goods from B for $10,000 on April 1. The payment is doe by A on April 7

So, the net payment is

= $10,000 - $10,000 × 2%

= $10,000 - $200

= $9,800

The $200 shows the discount which A avails and termed as a savings

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Park Co. is considering an investment that requires immediate payment of $21,705 and provides expected cash inflows of $6,700 an
hjlf

Answer:

The net present value of this investment is $989.32

Explanation:

The Net Present Value is calculated by taking the Present Day (discounted) value of all future net cash flows based on the business cost of capital and subtracting the initial cost of investment.

Input Value   Cash flow

CF0                ($21,705)

CF1                   $6,700

CF2                   $6,700

CF3                   $6,700

CF4                   $6,700

Cost of Capital = 7%

Input the values in a financial calculator we get the result;

Net present value = $989.3154

                              = $989.32

Conclusion :

The net present value of this investment is $989.32

8 0
3 years ago
The___ represents the cost of a loan and is expressed as a percent of the amount borrowed
kiruha [24]

Answer:

I’m pretty sure it’s B. interest rate

3 0
3 years ago
Rob works for $8.00 per hour. His regular hours are 40 hours per week and he gets time-and-a-half for overtime. One week he work
Arlecino [84]

Answer:

$440

Explanation:

$8.00 x 40 = 320

1.5 x 8 = 12

12 x 10 = 120

320 + 120 = 440

5 0
3 years ago
Tyler Industries currently manufactures one of its crucial parts at a cost of $4.50 per unit. This cost is based on a normal pro
lora16 [44]

Answer:

$175,000

Explanation:

Given:

Per unit cost of manufacturing = $4.50

Normal production rate = 50,000 units per year

Direct materials and direct labor costs = $2.50 per unit

Incremental overhead costs = $50,000 per year

Allocated fixed overhead costs = $50,000 per year

Quoted price = $3.70 per unit

Now,

total relevant cost per unit

= Direct materials and direct labor costs + (allocated fixed overhead costs ÷ Number of units to be made )

= $2.50 + \frac{50,000}{50,000}

= $2.50 + $1

= $3.50

Therefore,

Total relevant cost of making 50000 units

= $3.5 × 50,000

= $175,000

3 0
3 years ago
Johnson's rule gives optimal answer for what type of scheduling problems?
Degger [83]
The answer is two-machine flow shop. The two-machine flow shop issue in which each activity is prepared through an in-house framework or outsourced to a subcontractor. A calendar is set up for the in-house employments, and execution is measured by the makespan.
8 0
3 years ago
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