Answer:
PV $19,242.04
Explanation:
We will calculate the present value of an annuity using our cost of capital
C 309
time 72
rate 0.004083333 (A)
PV $19,242.04
This will be the present value of the lease at our capital rate.
<em>Notes</em>
(A)The payment are on a monthly basis, so the interest rate must be monthly to. For that we divide the 4.9 percent which is annual by 12
That way the time and rate are on the same metric.
Answer: $7.20 per minute
Explanation:
Find out the profitability of each product as Contribution Margin per minute.
Magnifico
Contribution margin per minute = (Selling price - Variable cost) / minutes on the constraint
= (335.18 - 259.26) / 7.5
= $10.12 per minute
Bellissimo
= (228.46 - 173.08) / 4.3
= $12.88 per minute
Lovely
= (199.21 - 159.61) / 5.5
= $7.20 per minute
Their least profitable product is $7.20 per minute.
The machine does not have sufficient time to satisfy the needs of Lovely so they will have to pay more to acquire more of the resource but they should not pay anything more than $7.20 per minute as this is their contribution margin for the product. and anything more would result in a loss.
<em>Options are most probably for another variant of the question. </em>
Answer:
Minimize the weighted average cost of capital (WACC).
Explanation:
The weighted average cost of capital (WACC) is the interest rate at which a company leverages its activities. The WACC includes the cost of debt (i.e. bonds and loans) and equity (i.e. common stock and retained earnings). It is calculated by multiplying each capital source by its interest rate and then adding the results.
A company should try to have the lowest WACC possible, since a lower interest rate equals higher profits.
Answer:
True.
Explanation:
Inventory holding cost are the cost incurred when storing goods that have not been sold. They are part of total inventory cost. Other costs that make up total inventory are shortage and ordering cost.
Inventory holding cost includes storage cost, cost from damaged goods, and insurance paid on excess goods.
Answer:
While a property is under a contract for deed, the buyer or vendee takes possession of the property and makes timely payments of principal and interest. At the end of the term, the vendee obtains a loan and uses the funds to pay-off the vendor. Given these circumstances, the seller may choose to repurchase the property after conveying title.
Explanation:
The seller has an option of repurchasing the property after conveying title.This is because the contract is under deed in which the buyer has taken possession and makes timely payments of principal and interest. Moreso, the title to the property is vested in the buyer since he as paid-off the vendor in full.
