Since the cost of $20,000 has been incurred two years ago, the firm should check and see as to how many units of the product were produced in the two years. Did the firm produce enough items to break even the cost of acquisition. Additionally the business should also check the current market value of this two year old equipment. The business manager should weigh in the savings that is to be obtained from outsourcing along with the resale value of the old machine and then take a declension as to whether the company should go for outsourcing. Also, the business manager must examine whether the outsourcing can happen for the long run. This is because two years down the line, outsourcing may have increased the cost and again another process may look attractive. So a through cost benefit analysis should be made before taking a decision.
Answer:
The insurer pays the mortgage lender $76,000.
Explanation:
As the total outstanding amount is only $76,000
Although that the value of home is $110,000. But only the outstanding balance which is yet not repaid on mortgage will be paid to mortgage lender.
This will be paid by the insurer as the house was insured, and even though if it is burned intentionally, the insurer can not run from his liability.
Accordingly the entire balance of mortgage lender, since amount outstanding is less than value of home will be paid by the insurer.
Answer:
bondholders will receive 8% of $1,000 = $80
Explanation:
The price of the bond varies depending on the yield to maturity, resulting in higher or lower gains for bondholders, but the actual cash amount received will always be equal to the coupon rate.
The same applies to the issuer of the bond, it may receive more or less money depending on the market rate, which increases or decreases interest expense, but the amount of money paid is always the coupon rate.
The correct answer should be a fatalist decision maker
