Answer:
Amortization schedule is attached.
Explanation:
Key matrix
Present value annuity factor
Rate = 12%
Terms = 3 years
Annuity factor = 2.408 (this can be derived from present value table - annuity factor)
Annual payment = 32,000/2.408
Annual payment = $13,323.17
Answer:
The correct option is (B) Monterosa
Explanation:
At the time when the goods are shipped so in the case of FOB destination the goods title would be transferred to the buyer at the time of reaching to the buyer destination as mentioned by the buyer. Till then it would be included in the seller's inventory
So as per the given situation, Monterosa should involves this goods in its closing inventory i.e. as on December 31
Answer:
10 units;
50 units.
Explanation:
The revenue function is given by the price function multiplied by the number of units sold (x).
The break even point occurs when Revenue equals costs:
Therefore, the smallest number of units required for the company to break even is 10 units.
Maximum profit will be achieved at that number of units for which the derivate of the profit function is zero:
The number of units that will give maximum profit is 50.
Answer:
$472.10
$482.78
decreasing the discount rate increases the present value of the willingness to pay
Explanation:
Present value is the sum of discounted cash flows
Present value can be calculated using a financial calculator
Cash flow in year 0 - 2 = $150
Cash flow in year 3 = $50
PV when I is 5% = 472.10
PV when I is 3% = 482.78
To find the PV using a financial calculator:
1. Input the cash flow values by pressing the CF button. After inputting the value, press enter and the arrow facing a downward direction.
2. after inputting all the cash flows, press the NPV button, input the value for I, press enter and the arrow facing a downward direction.
3. Press compute
Answer: a. Cheaper
b. Shift production from commodity-type goods to high-value products.;
Begin importing foreign-made parts
Explanation:
1. Japanese products became 22% <u>cheaper</u> than U.S. products.
The US Dollar became 22% stronger than the Japanese Yen meaning that the US Dollar can now buy 22% more Yen than before. If a good is priced in Yen then this means that the USD can buy 22% more of that good than before meaning that the good is 22% cheaper now.
2. Commodity goods are essentially raw or semi processed foods. Because the USD has become stronger, importing these goods instead of producing them would reduce the cost of production if they were to start processing said goods and making them High Value products so this is what they should do.
The USD is now stronger against major trading Partners. Like earlier mentioned, this means that the USD can buy 22% more goods as a result. Companies should therefore import parts that they need because they'll be able to buy 22% more of those parts thereby reducing their cost of Production.
