Answer:
The Scion xA EAC: -7,953.41
The Toyota Prius EAC: -8,043.16
Explanation:
<em>The equivalent cost is the PMT of the present worth of the asset,</em> so the first step to solve for EAC is to calculate the present worth:
<u>The Scion xA:</u>
Purchase 15,500
Present value of the cash flow needs:
C 1,500
time 3
rate 0.12
PV $3,602.7469
<u><em>Present worth: </em></u>15,500 + 3,602.75 = 19,102.75
<em>Now, we calcualte the PMT:</em>
PV 19,103
time 3
rate 0.12
C $ 7,953.410
<u>Toyota Prius:</u>
Purchase: 22,000
present value of annual OCF
C 800
time 4
rate 0.12
PV $2,429.8795
present worth: 24,429.88
Equivalent annual cost:
PV 24,430
time 4
rate 0.12
C: $ 8,043.158
Strategic planning is the company's plan which results from tough managerial choices among numerous good alternatives and signals commitments to specific markets, policies, procedures, and operations. Strategic management in this text is used snonymously with the term strategic planning. Strategic management is used to refer to strategic formulation, implementation, and evaluation of decisions that enable an organization to achieve its objectives.
The answer would be A. Shoes.
It is implied that a good has an inelastic supply if the supplier does not have a choice other than producing it despite the change in production cost. This would as well apply to the buyer, who needs the product no matter the pricing.No one can live without shoes, despite a spike in prices, we still need to buy them.
Answer:
Price Level is B. The average level of prices
Explanation:
Price level is the average of current prices across the entire spectrum of goods and services produced in the economy.
Price level refers to the price or cost of a good, service, or security in the economy.
Reference: Kenton, Will. “Reading Into Price Levels.” Investopedia, Investopedia, 27 Sept. 2019
Answer:
<h2>
a. Accounts receivable days = (Accounts Receivables/ Sales) * 365</h2>
Walmart Accounts Receivable Days = 5,587/482,546 * 365
= 4.23 days
Target Accounts Receivable Days = 832/73,481 * 365
= 4.13 days
<h2>
b. Inventory Turnover = Cost of Goods Sold/ Inventory</h2>
Walmart Inventory Turnover = 360,628/45,362
= 7.95
Target Inventory Turnover = 52,560/8,549
= 6.15
c. With Accounts Receivable, the company with the lower Receivable Days is managing Accounts Receivables well because they are getting paid earlier.
Target has a lower Accounts Receivable Days so Target is the company managing its accounts receivable more efficiently.
A higher Inventory Turnover ratio means that a company is managing inventory better as they are selling and replacing inventory faster.
Walmart has a higher Inventory Turnover ratio so Wal-Mart is the company managing its inventory more efficiently.