The rate of return would David need to break even if he took the lump sum amount instead of the annuity is 5.56%.
<h3>Rate of return to break even</h3>
First step is to calculate the rate for the period of 25 years
Rate= Single lump sum/Dollar amount received×100
Rate=$10 million/$750,000×100
Rate= 13.33%
Second step
Using annuity date to find the rate of return needed to break even. Based on the Annuity table 13.33% for the time period of 25 years is 5.56%.
Therefore the rate of return would David need to break even if he took the lump sum amount instead of the annuity is 5.56%.
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The options are:
A) reverse engineeringB) value chain extensionC) focused strategyD) niche market
Answer:
Value chain extension.
Explanation:
Value chain extension are the steps a company takes to extend the reach of their products to customers, and multiple relationships are built that impacts the bottom line.
In this instance eBay customers write a review after each purchase and the reviews are now used by buyers to evaluate the seller's.
EBay in turn gives special privileges. This is eBay creating an extended value chain in delivering it's products to customers.
Answer:
Explanation:
The journal entry is shown below:
Factory Overhead A/c Dr $25,000
To Wages Payable A/c $25,000
(Being actual overhead cost is recorded)
For recording this transaction, we debited the factory overhead account and credited the wages payable account so that the correct posting can be done.
All other information which is given is not relevant. Hence, ignored it
Answer:
EOQ= 255 units
Explanation:
<u>Economic order quantity (EOQ)</u> is the ideal order quantity a company should purchase to <u>minimize inventory</u> costs such as holding costs, shortage costs, and order costs.
<u>To calculate the EOQ, we need to use the following formula:</u>
Economic order quantity (EOQ)= √[(2*D*S)/H]
D= Demand in units
S= Order cost
H= Holding/carriying cost
EOQ= √[(2*900*20)/0.6]
EOQ= 255 units
Answer: it’s the amount of output compared to the input needed to create something
Explanation:
just took the test
