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A business becoming incorporated is an example of risk ____.

kap26 [50]

<span>A business becoming incorporated is an example of risk management.</span>

When a business becomes incorporated it is trying to protect the assets of the company. By assessing and making a risk management decision to become incorporated they are protecting themselves and the company as a whole.

7 0

3 years ago

A U.S. exporter sells $150,000 of furniture to a Latin American importer. The exporter requires the importer to obtain a letter

grandymaker [24]

Answer:

5.52%

Explanation:

Cost of Furniture= $150,000

discount= 5.25% (120-day note)

To get the exporter's true effective annual financing cost, we have:

$150,000*[1-(0.0525*120/360)] = 147,375$

=(150,000/147,375) 365/120-1 = 5.52%

Therefore, the exporter's true effective annual financing cost is 5.52%

6 0

4 years ago

Lcg inc., a mobile manufacturing company, is launching its new product in the market. the managers at lcg want to price the prod

Dominik [7]

The answer is variable pricing strategies

If the company is launching a completely new they would have invested heavily in R&D and are about to invest a lot of money in the marketing and promotion as well.

Variable pricing simply takes into account the cost of bringing that product to market and prices the product accordingly. This is to ensure that the new product can help the company recover it's costs as soon as possible.

It also ensures that the final price is a balancing act so that the product's price is attractive for the buyer and a medium way between 'sales volume and income per unit' is achieved.

5 0

3 years ago

On January 1, 2016, the Accounts Receivable balance was $22,600 and the balance in the Allowance for Doubtful Accounts was $2,20

almond37 [142]

Answer:

$19,780

Explanation:

Net realizable value of accounts receivable = Accounts Receivable balance - Balance in the Allowance for Doubtful Accounts - Uncollectible account was written-off

Therefore, we have:

Net realizable value of accounts receivable = $22,600 - $2,200 - $620 = $19,780.

Therefore, the net realizable value of accounts receivable immediately after the write-off is $19,780.

4 0

3 years ago

Read 2 more answers

Paragas, Inc., is considering the purchase of a machine that would cost $370,000 and would last for 8 years. At the end of 8 yea

const2013 [10]

Answer:

The net present value of the proposed project is close to $19,544.65.

Explanation:

The net present value of the proposed project can be calculated as follows:

Step 1: Calculation of the proposed project's present value of saving of labor and other costs

This can be calculated using the formula for calculating the present value of an ordinary annuity as follows:

PVC = P * ((1 - (1 / (1 + r))^n) / r) …………………………………. (1)

Where;

PVC = Present value of the proposed project of saving of labor and other costs = ?

P = Proposed project's saving of labor and other costs = $96,000

r = required pretax return = 19%, or 0.19

n = number of years of the project = 8

Substitute the values into equation (1), we have:

PVC = $96,000 * ((1 - (1 / (1 + 0.19))^8) / 0.19)

PVC = $379,619.10

Step 2: Calculation of the proposed project's present value of working capital investment recovered at the end of the life of the machine

This can be calculated using the formula for calculating the present value as follows:

PVW = W / (1 + r)^n .......................... (2)

PVW = Present value of proposed project's working capital investment recovered at the end of the life of the machine = ?

W = Proposed project's working capital investment recovered at the end of the life of the machine = $4,000

r = required pretax return = 19%, or 0.19

n = number of years of the project = 8

Substitute the values into equation (2), we have:

PVW = $4,000 / (1 + 0.19)^8

PVW = $994.68

Step 3: Calculation of present value of the machine salvage value

This can be calculated using the formula for calculating the present value as follows:

PVS = W / (1 + r)^n .......................... (3)

PVS = present value of the machine salvage value = ?

W = machine salvage value = $52,000

r = required pretax return = 19%, or 0.19

n = number of years of the project = 8

Substitute the values into equation (3), we have:

PVS = $52,000 / (1 + 0.19)^8

PVS = $12,930.87

Step 4: Calculation of the net present value of the proposed project

Net present value = PVC - Cost of machine - Initial working capital investment + PVW + PVS

Net present value = $379,619.10 - $370,000 - $4,000 + $994.68 + $12,930.87

Net present value = $19,544.65

5 0

3 years ago