Answer:
PV=?
N=3
FV= 47,700
PMT= 17,000
I= 5%
Put values in financial calculator
Pv=$87,500
Now use this value to calculate residual value at the end of year 4
PV= 87,500
N=4
Fv=?
PMT= -17,000
I=5
$33,084= residual value in 4 years.
Explanation:
Answer:
Silven Industries
If Silven buys its tubes from the outside supplier, it will be able to avoid $1.10 of its own Chap-Off manufacturing costs per box
Explanation:
a) Data and Calculations:
Estimated Production and Sales Units of Chap-Off = 140,000 boxes
Manufacturing cost per box: Avoidable costs
Direct material $ 3.70 $0.74 ($3.70 * 20%)
Direct labor 2.00 0.20 ($2.00 * 10%)
Manufacturing overhead 1.60 0.16 ($1.60 * 10%)
Total cost $ 7.30 $1.10
Outside supplier's price for tubes = $1.20 per box
b) Unless there an alternative use for the machine used in making the tubes internally exists, it may not be cost-effective for Silven to buy from the outside supplier. Alternatively, it should renegotiate a price per box that is less than $1.10 in order to stop making the tubes internally.
Answer:
Intensive.
Explanation:
In this scenario, Mike is driving over to his girlfriend's apartment and decides to buy some gum. He could stop in a gas station, go to any grocery store, go to any discount store, or even buy some out of a vending machine. The reason Mike has so many options to buy gum is because chewing gum companies strive for intensive channel coverage.
An intensive channel coverage is a sales method which is typically focused on providing varieties of sales outlets or channels for customers to buy their desired products.
Companies operating under the intensive channel coverage, are usually aimed at saturating the market with their products, by using all available sales outlets.
<em>Hence, Mike had so many outlets where he could buy gum from because chewing gum companies strive for intensive channel coverage in order to reach out to potential customers. Other examples of companies that use the intensive coverage channel are cigarette, beer etc. </em>
A the opportunity cost $10 the benefits is that he now has a shirt
Answer:
Annual deposit= $21,568.87
Explanation:
Giving the following information:
You have just turned 30 years old. Every dollar in the plan earns 9 % per year. You cannot make withdrawals until you retire on your 60th birthday.
You will need $ 98,000 per year starting at the end of the first year of retirement and ending on your one-hundredth birthday.
First, we need to calculate the total amount needed at age 60.
Final value= 30years*98,000= $2,940,000
To calculate the annual deposit we need the following formula:
FV= {A*[(1+i)^n-1]}/i
A= annual deposit
Isolating A:
A= (FV*i)/{[(1+i)^n]-1}
A= (2,940,000*0.09)/[(1.09^30)-1]= $21,568.87
