Answer:
A farmer is the one that owns the cattle and is ready to sell it on the market demand, while the meatpacker is the one who buys the product and sells it in different parts to the end consumers.
Since they both are using the commodity market to reduce the risk, the farmer will be the one who agrees to sell the cattle in the future at a fixed rate, while the meatpacker will be the one who agrees to buy the cattle in the future at a specified price fixed by him.
Hope this helps. ThankYou.
Answer:
Machine A = $ 1.22 million
Machine B = $ 0.70 million
Explanation:
The Equivalent Annual Annuity of the machines is as follows
Machine A = $ 1.22 million
Machine B = $ 0.70 million
Thus the Machine A with a higher Equivalent Annual Annuity of $ 1.22 Million is the better machine.
If the company accepted the better machine which is Machine A, the value of the company increases by $ 3.57 Million (Which is the net total of discounted cash Inflows = Net Present value of Machine A)
See attached file for details.
Answer:
The goodwill is $9,220
Explanation:
Goodwill is the excess of purchase consideration paid to acquire a business over the fair value of net assets acquired.
Fair value of net assets acquired is the difference between the fair of assets acquired over the fair value of liabilities taken up which is shown below.
Net assets=$89,600-$14,800
Net assets =$74,800
Since purchase consideration paid is $84020
Goodwill=$84,020-$74800
Goodwill=$9,220
The goodwill of $9220 represents the premium paid over the net assets of Catteman's Steakhouse as a compensation to the owners of the business in return for their efforts of running the business and see go through different phases of development since the establishment of the business.
