Answer:
B) 708
Explanation:
The computation of the economic order quantity is shown below:
Data given in the question
Annual demand = 50,000 units
Ordering cost per order = $25
Holding cost per unit = $5
= 708 units
We apply the above formula to compute the economic order quantity so that the approximate value could come by considering the all items given in the question
Answer:
-3.41%
Explanation:
The computation of the annual rate of return is shown below;
We use the formula:
Future value = Present value × (1 + rate of interest)^number of years
$10,710,500 = $12,738,500 × (1 + rate of interest)^5
($10,710,500 ÷ $12,738,500)^(1 ÷ 5) = (1 + rate of interest)
(1 + rate of interest) = 0.965913622
r = (0.965913622 - 1) × 100
= -3.41%
Answer:
- <u>The numbrer of performance obligations is equal to the number of new subscribers.</u>
<u></u>
Explanation:
Each <em>new subscriber </em>generates a<em> performance obligation</em>, as the automotive magazine provides a coupon to each new subscriber, and each coupon is a promise to provide the discount.
A perfomance obligation is a contractual promise to provide a “distinct” good or service to a customer" (taken from the internet).
Whether or not the an obligation will be recognized or not will depend on whether the subscriber uses the coupon or not, but that does not depend on the will of the automotive magazine: they are obliged to provide the discount to every subsriber that uses the coupon (within the terms of the contract).
Thus, since each coupon is a contract, each one is a performance obligation.
<span>Net present value is the present value of future cash inflows discounted at the expected rate of return minus the initial investment.
Initial cash outflow = $7670
Cash inflow during Year 1 = $1280
Cash inflow during Year 2 = $0
Cash inflow during Year 3 = $6980
Cash inflow during Year 4 = $2750
Discount rate = 12.5%
NPV = (1280/1.125^1)+(0)+(6980/1.125^3)+(2750/1.125^4)-7670
NPV = (1280/1.125)+0+(6980/1.424)+(2750/1.6)-7670
NPV = 1137.778+0+4902.277+1716.811-7670
NPV=86.86</span>
Answer:
If $40,000 is invested in the trust fund in the year 2021 and if it earns a very good rate of return of 10% per year, the amount of each scholarship, starting in 2035 will be:
= $167,089.93
Explanation:
a) Data and Calculations:
Investment in the trust fund in 2021 = $40,000
Investment period = 15 years (2021 to 2035)
Rate of return = 10%
From an online financial calculator:
N (# of periods) 15
I/Y (Interest per year) 10
PV (Present Value) 40000
PMT (Periodic Payment) 0
Results
FV = $167,089.93
Total Interest $127,089.93
