1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
olga2289 [7]
3 years ago
14

A buyer failed to take advantage of the vendor's credit terms of 2/10, n/45, but instead paid the invoice in full at the end of

45 days. By not taking advantage of the cash discount, the equivalent annual interest lost on the amount of the purchase is:
Business
1 answer:
Neko [114]3 years ago
5 0

Answer: 20.86%

Explanation: From the question, the credit term is 2/10, n/45. Which means that the customer gets a 2% discount if payment is made within 10 days. But the customer did not make use of this offer. The equivalent annual Interest lost on the amount of purchases is :

365/ (45-10) * 0.02 = 365/35*2%

= 0.20857 *100= 20.86%

This is calculated using 365 days in a year.

You might be interested in
Introverts recharge their energy in large groups.
viktelen [127]
The answer is false. introverts recharge their energy by themselves
3 0
2 years ago
Assessments of how a diversified company's subsidiaries compare in competitive strength should be based on such factors as:
larisa86 [58]

Complete Question:

Assessments of how a diversified company's subsidiaries compare in competitive strength should be based on such factors as;

A. vulnerability to seasonal and cyclical downturns, vulnerability to driving forces, and vulnerability to fluctuating interest rates and exchange rates.

B. relative market share, the ability to match or beat rivals on key product attributes, brand image and reputation, costs relative to competitors, and the ability to benefit from strategic fits with sister businesses.

C. the appeal of its strategy, the relative number of competitive capabilities, the number of products in each business's product line, which businesses have the highest/lowest market shares, and which businesses earn the highest/lowest profits before taxes.

D. the ability to hurdle barriers to entry, value chain attractiveness, and business risk.

E. cost reduction potential, customer satisfaction potential, and comparisons of annual cash flows from operations.

Answer:

B. relative market share, the ability to match or beat rivals on key product attributes, brand image and reputation, costs relative to competitors, and the ability to benefit from strategic fits with sister businesses.

Explanation:

Assessments of how a diversified company's subsidiaries compare in competitive strength should be based on such factors as;

1. Relative market share: this measures the subsidiaries position in a market in relation to its competitors in the same industry. It is a measure of the percentage of the market they control.

2. The ability to match or beat rivals on key product attributes: this is really important in the assessment of competitive strengths because it represents the level of acceptance of their products by consumers in comparison with rivals.

3. Brand image and reputation: if the subsidiary is well accepted by the consumers, it simply suggests that they have a good brand image and reputation in the market. A good brand image and reputation is competitive strength.

4. Costs relative to competitors: the higher the price a company is selling its products relative to rival companies, the lesser its sales would be because consumers would naturally go for cheaper products or lower prices.

5. The ability to benefit from strategic fits with sister businesses: companies should be able to achieve their set goals and objectives from opportunities presented by their sister company.

<em>Hence, the competitive strength of a diversified company and its subsidiaries should be assessed based on the aforementioned factors</em>.

8 0
2 years ago
When faced with the option of beginning a new venture you should always select the time that results in the:______.
kap26 [50]

When faced with the option of beginning a new venture you should always select the time that results in the highest NPV.

The important thing assumption we ought to make in entrepreneurship is the idea that the handiest way to do matters right is to do them yourself. because of this, we need to take dangers and also need confidence in our talent set so we can produce satisfactory work while at the same time maintaining a tremendous mindset.

Someone who undertakes the chance of starting a new enterprise task is referred to as an entrepreneur. An entrepreneur creates a firm to realize their idea, called entrepreneurship, which aggregates capital and labor on the way to produce goods or services for profit. Entrepreneurship is the willingness and potential to establish, organize and control a business and take economic dangers to make earnings. An Entrepreneur is an innovator who brings in new ideas to create a hit business assignment.

Learn more about Beginning a new venture here:-brainly.com/question/19260136

#SPJ4

3 0
2 years ago
Casey Nelson is a divisional manager for Pigeon Company. His annual pay raises are largely determined by his division’s return o
baherus [9]

Answer:

NPV: $180,285.49

IRR: 21.336%

simple rate of return: 72.13%

Explanation:

6,100,000 investment

contribution margin 3,000,000

fixed expense:       <u>     900,000  </u>

EBITA                         2,100,000

We will calculate the NPV without the depreciation, as the depreciation is the distribution of the investment cost over the project life.

If we include the depreciation we will be counting the investment amount twice. Entirely at Time 0  and then subtracting on each cash inflow.

We will calculate the NPV at 20% as is the company's discount rate. Even if the current division returns are in 24% as the company accepts project which yields 20%.

C \times \frac{1-(1+r)^{-time} }{rate} = PV\\

C 2,100,000

time 5 years

rate 20% = 20/100 = 0.2

2100000 \times \frac{1-(1+0.2)^{-5} }{0.2} = PV\\

PV $6,280,285.49

NPV = PV of cash inflow - investment

6,280,285.49 - 6,100,000 = 180,285.49

<u>the IRR:</u>

The internal rate of return is the rate at which the NPV of a priject is zero.

We calculate this using excel formula IRR

or a financial calculator

it could also be done with trial and error using the PV tables.

<u>I will explain you in Excel</u>

FIrst, you write the inflow and outflow per year:

-6,100,000

2,100,000

2,100,000

2,100,000

2,100,000

2,100,000

then we write on another cell:

=IRR(

then, select the cells

and press enter

21.336%

<u>the simple rate of return:</u>

(total return - investment) / investment

(2,100,000 x 5 - 6,100,000) / 6,100,000 =

4,400,000 / 6,100,000 = 0.721311475 = 72.13%

7 0
3 years ago
The Tree Top Airline​ (TTA) is a small​ feeder-freight line started with very limited capital to serve the independent petroleum
nikitadnepr [17]

Answer:

To make it feasible it will need to operate 7 or more planes.

Explanation:

450,000 maintenance facility

useful life of 15 year

salvage value of 100,000

<u>saving cost per plane:</u>

third party cost - own facility cost = cost savings

           35,000  -          25,000      =    10,000

present value of the salvage value: (present value of a lump sum)

\frac{salvage }{(1 + rate)^{time} } = PV  

salvage $ 100,000

time  15 years

Minimum accepter rate of return: 0.12000

\frac{100000}{(1 + 0.12)^{15} } = PV  

PV   18,269.6261

present worth of the facility:

450,000- 18,268.63 = 431,731.37

Now we determinate the PMT over a 15 years period to know the cost savings per year to justify the facility:

PV \div \frac{1-(1+r)^{-time} }{rate} = C\\

PV 431,731

time 15

rate 0.12

431731.37 \div \frac{1-(1+0.12)^{-15} }{0.12} = C\\

C  $ 63,388.630

As each plane cost savings are 10,000

63,388.62  / 10,000 = 6.39

the company will need to operate 7 or more planes.

3 0
3 years ago
Other questions:
  • When a company applies the initial value method in accounting for its investment in a subsidiary and the subsidiary reports inco
    15·1 answer
  • A type of high school diploma available to students with disabilities who are not able to meet the requirements for a standard d
    9·2 answers
  • The most important factor determining whether a research collaboration will be successful is:
    8·2 answers
  • Usually arise when companies give work groups complete autonomy and responsibility for task completion. continue
    5·1 answer
  • Timothy, a cashier, is given a twenty-dollar bill at his store. He is suspicious of the customer and wants to make sure the curr
    10·2 answers
  • Licensees are responsible for paying the costs of legal document preparation when they are preparing such documents for their cl
    12·1 answer
  • Managers should consider doing all of the following to develop a strong culture for a unit EXCEPT A Option A: stress a concern f
    5·1 answer
  • Which of the following is true about the Grange? 1. It established cooperatives for storing and marketing farm output. 2. It pus
    11·1 answer
  • Select all that apply.
    10·2 answers
  • In 2009, Winn, Inc. issued $1 par value common stock for $35 per share. No other common stock transactions occurred until July 3
    10·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!