Answer:
$10 million
Explanation:
Calculation for the reported profit for the first year of the contract
Using this formula
Reported profit=(BB Costs/Project cost estimate)×(Building contract-Project cost estimate)
Let plug in the formula
Reported profit = ($30 million / $75 million)×($100 million – $75 million)
Reported profit=0.4 million ×25 million
Reported profit= $10 million
Therefore the reported profit for the first year of the contract will be $10 million
Answer:
a. Global Outsourcing
Explanation:
Global outsourcing is a process in which a vendor gives its trademark rights and or resources, functions to an external vendor at a different country. Here Ropalique in Wesabania has given its trademark rights to Vestinx in Tristonville to expand its business operations.
Exporting is sending the finished goods in another country for sales purpose without giving trademark rights.
Outsourcing is obtaining goods from an outside supplier.
Joint Ventures are organization formed to carry out a project by two or more parties keeping their separate identities.
The administration of upstream and downstream association's with providers and clients to convey better incentive at less cost than the inventory network all in all.
Answer: 30.3%
Explanation:
Because taxes are not paid on municipal bond interest, their interest rates are usually lower with the difference accounting for the taxes paid.
For a municipal bond to be similar to a corporate bond, the tax rate must be such that it makes them equal:
Municipal bond return = Corporate bond return * (1 - tax rate)
5.75% = 8.25% * (1 - tax)
1 - tax rate = 5.75% / 8.25%
1 = 0.6969697 + Tax rate
Tax rate = 1 - 0.6969697
= 30.3%