Answer:
A. closed-end credit
Explanation:
Closed-end credit is a loan or a credit type where the funds would be dispersed at the time when the loan is closed and it would be paid back by involving the interest & finance charges
Since in the question it is mentioned that she would make the payment in 12 equal payments so here she is using closed-end credit
hence, the correct option is a.
Answer:
The answer is: a
Explanation:
The Parton Company has a 'make or buy' decision. This decision involves analysing the incremental costs associated with each option. Incremental costs are costs incurred as a result of producing one more unit of a product. If the excess capacity can be utilised to produce the headlights at a lower cost than the cost of acquiring the headlights from an external supplier, then the company should produce the headlights.
The Parton Company incurs $12.80 per headlight purchased from the external supplier. Added to this cost, are the existing costs of operating below plant capacity. If making the headlights in the manufacturing plant yields a positive contribution to fixed costs, then the Parton company should produce the headlights in the manufacturing plant.
By producing the headlights, the Parton company gains a contribution to fixed costs of $1.03 per headlight.
Foregone purchase costs from supplier: $12.80
Incurred costs (directly) from production: ($11.77)
Direct materials ($4.45)
Direct Labour ($3.45)
Manufacturing Overheads: $(6.45*0.6) <u>($3.87)</u>
Net gain per headlight <u> </u><u>$1.03</u>
Answer:
option B) $ 25M
Explanation:
Data provided in the problem:
Without proposed project A,
The estimated cash flows over the next 3 years = $ 275M
With the proposed project A,
The estimated cash flows over the next 3 years = $ 300M
Now, the amount of incremental cash flows associated with Project A will be calculated as;
Incremental cash flow = Cash flows (With Project A) - Cash flows (Without Project A)
on substituting the values, we get
Incremental cash flow = $ 300M - $ 275M = $ 25M
Hence, the correct answer is option B.
Answer:
A free trade area
Explanation:
A free trade area comes to existence when two or more countries sign an agreement that eliminates or reduces trade barriers among themselves. Usually, nations in the same region sign a free trade agreement that encourages economic cooperation. In a free-trade area, goods and services can move from one country to another with minimal or no government interference in terms of tariffs, embargo, quotas, or other prohibitions.
The four South American countries have formed a free trade area. They have agreed to economic cooperation that allows free flow of trade among the nations. The countries have established a trading block that will spur economic growth in each of them.
