Answer: option 3
Explanation:
Background to the case:
The cases involving the explosion of Ford Pinto's due to a defective fuel system design led to the debate of many issues, most centering around the use by Ford of a cost-benefit analysis and the ethics surrounding its decision not to upgrade the fuel system based on this analysis.
Basis of analysis:
Should a risk/benefit analysis be used in situations where a defect in manufacturing could lead to seriously bodily harm and even worse death, such as in the Ford Pinto situation?
Rule of the court:
There hasn’t really been a definite decision about the case and arguments both for and against such an analysis have been made. It is an economically efficient method which has been accepted by courts for numerous years, however, juries may not always agree, so companies should take this into account.
Discretion is expected to be used.
C is the answer
Hope this helps
Answer:
$72,700
Explanation:
Data provided in the question:
Purchasing cost = $70,000
Sales tax = $700
Freight charges = $800
Shipping charges = $150
Repair charges = $1,300
Installation cost = $1,050
Now,
Cost of the equipment
= Purchasing cost + Sales tax + Freight charges + Shipping charges + Installation cost
= $70,000 + $700 + $800 + $150 + $1,050
= $72,700
Note: Repair cost is not included in the cost.
I cannot see the questions can you please get closer
Answer:
6.53%
Explanation:
For computing the after cost of debt we need to use the RATE formula i.e to be shown in attached spreadsheet. Kindly find it below:
Given that,
Present value = $1,050.76
Future value or Face value = $1,000
PMT = 1,000 × 10% = $100
NPER = 5 years
The formula is shown below:
= Rate(NPER;PMT;-PV;FV;type)
The present value come in negative
So, after applying this above formula
1. The pretax cost of debt is 8.70
2. And, the after tax cost of debt would be
= Pretax cost of debt × ( 1 - tax rate)
= 8.70% × ( 1 - 0.25)
= 6.53%
