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mote1985 [20]
3 years ago
5

Travis International has a one-time expense of $1.13 million that must be paid two years from today. The firm can earn 4.3 perce

nt, compounded monthly, on its savings. How much must the firm save each month to fund this expense if the firm starts investing equal amounts each month starting at the end of this month?
Business
1 answer:
11Alexandr11 [23.1K]3 years ago
8 0

Answer:

The firm must save $45,172.02  monthly for 24 months to be able to pay $1,130,000 at 4.3% compounded monthly as found in the attached

Explanation:

In calculating the monthly saving , I used the PMT function in excel,whose formula is given as PMT(rate,nper,pv,-fv)

r represents the rate on the savings given as 4.3% annually but 0.36% per month (4.3%/12 months), as the compounding is done monthly.

nper represents the duration of savings,given as two years but multiplied by 12 months to reflect monthly compounding horizon

pv is the present value zero as it is not given and not required

Fv is future value given as $1,130,000

Find detailed computation in the attached.

Download xlsx
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masha68 [24]

Answer:

Materials = 44,000

Conversion = 40,800

Explanation:

<em>Step 1 Determine the Number of Closing Work In Process Units</em>

Closing Work In Process Units = Opening Work In Process Units + Units started in process - Units transferred out

                                                   = 6,000 + 38,000 - 36,000

                                                   = 8,000

<em>Step 2 Determine the equivalent units for March 2019</em>

<u>Materials :</u>

<em>Note : Materials are added at the be-ginning of the process, therefore Units Transferred Out and Closing Work In Process are 100% complete in terms of materials</em>

Closing Work In Process Units - 100% =  8,000

Units transferred out - 100%                 = 36,000

Total equivalent units                           = 44,000

<u>Conversion :</u>

<em>Note : Ending work-in-process was 60% processed, therefore 60% completed in terms of conversion costs</em>

Closing Work In Process Units - 60%  =  4,800

Units transferred out - 100%                 = 36,000

Total equivalent units                           = 40,800

7 0
2 years ago
Holly's is currently an all-equity firm that has 12,000 shares of stock outstanding at a market price of $36 a share. The firm h
vagabundo [1.1K]

Answer:

$31,104

Explanation:

EBIT / 12,000

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EBIT = $31,104

Therefore the minimum level of earnings before interest and taxes that the firm is expecting will be $31,104

8 0
3 years ago
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Brrunno [24]

Answer:

answer can be seen in the attached file

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What is Game Theory?

This is a mathematical modelling that deals  with the analysis of strategies for dealing with competitive situations where the result of a participant's choice of action depends critically on the actions of other participants. Game theory has been applied to  in war, business, and biology, sport.

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3 0
3 years ago
What is secondary product?
vampirchik [111]
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3 0
3 years ago
During his annual performance review, Blake says to his supervisor, "So the two main ways that you want me to improve are to dou
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Answer:

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The player being investigated  

so correct option is E. summarizing

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