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shtirl [24]
4 years ago
10

A car manufacturer advertises that the windshield in its cars is shatterproof and will not break even when hit with a strong imp

act. While an owner of one of the cars was driving home one day, a small rock hit the windshield and the windshield broke, cutting the driver. What type of warranty was breached?a) an express warrantyb) an implied warrantyc) the warranty of fitness for a particular purposed) the Magnuson-Moss warranty
Business
1 answer:
Olin [163]4 years ago
3 0

Express warranty was breached.

Option a

<u>Explanation: </u>

An express warranty is a contract by a seller to provide replacement or repair within a specified period of time for a defective product, service or component. In accordance with the federal Magnuson-Moss Warranty Act, if an item is sold for < $15 a company must make written express warranty.

For compliance with the Magnuson-Moss Warranty Act, if a product is sold for more than 15 million, a manufacturer must provide a formal specific warranty.

Description of a product or service mentioned in the commercial will set a clear promise as a precedent.

An implicit promise can take effect in the absence of expressed guarantees.

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Random Co. purchased a machine for $400,000 that has a five year life and will produce annual net cash inflows of $110,000 per y
inysia [295]

Answer:

NPV = $39,230

Payback period = 3.64 years

Explanation:

The net present value (NPV) = (net annual cash flow x interest factor) - investment

NPV = ($110,000 x 3.993) - $400,000 = $439,230 - $400,000 = $39,230

The payback period = investment / net annual cash flow = $400,000 / $110,000 = 3.64 years or 3 years, 7 months and 19 days

You can also calculate the PV of each annual cash flow which will give you a more precise result, but the variation is minimal:

PV = ($110,000 / 1.08) + ($110,000 / 1.08²) + ($110,000 / 1.08³) + ($110,000 / 1.08⁴) + ($110,000 / 1.08⁵) = $439,198

and the NPV = $39,198

5 0
3 years ago
Based on his​ preferences, Bill is willing to trade 5 movie tickets for 1 ticket to a basketball game. If movie tickets cost ​$1
Leviafan [203]

Answer:

Bill shouldnt trade movie tickets for basketball​ tickets, since  MRS > Pb/Pm.

Explanation:

Price ratio = Pb/Pm

                 = $46/$10

                 = 4.6

MRS = 5/1

        = 5

MRS > Pb/Pm

Therefore, Bill shouldnt trade movie tickets for basketball​ tickets, since  MRS > Pb/Pm.

4 0
4 years ago
An investment will pay $202,000 at the end of next year for an investment of $182,000 at the start of the year. If the market in
lapo4ka [179]

Answer:

The first investment is more profitable than the general market interest rate.

Explanation:

Giving the following information:

An investment will pay $202,000 at the end of next year for an investment of $182,000 at the start of the year. The market interest rate is 7.9% over the same period.

<u>To compare both options, we need to calculate the final value of investing the $182,000 in other investment that pays a 7.9% interest rate.</u>

We need to use the following formula:

FV= PV*(1+i)^n

FV= 182,000*(1.079)= $196,378

The first investment is more profitable than the general market interest rate.

7 0
3 years ago
What two ingredients provide the structure in conventional baked goods?
Natalija [7]
The answer is wheat flour and gluten.
5 0
3 years ago
Consider a mutual fund with $200 million in assets at the start of the year and 10 million shares outstanding. The fund invests
inysia [295]

Answer:

At start = $20/share

At end = $21.384

Explanation:

DATA

ASSets at the start = $200m

Outstanding shares = 10m

Dividend income at the end = $2m

Gain in price = 8%

12b-1 fees = 1%

A.

Net assets at the start can be calculated by dividing assets at the start by outstanding shares

Net Assets value at start = Assets at start/Outstanding shares

Net Assets value at start = $200m/10m

Net Assets value at start = $20/share

Net Assets value at the end can be calculated by multiplying gain price with 12b-1 fees

Net assets value at the end = Gain Price x (1-12b-1 fees)

Net Assets value at the end = ($20x$1.08) x (1 - 0.01)

Net Assets value at the end = $21.6 x 0.99

Net Assets value at the end = $21.384

3 0
3 years ago
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