Answer:
Correct option is (c)
Explanation:
Given:
YTM (yield to maturity) (Rate) = 12%
Coupon rate = 11%
Face value = $1,000,000
Coupon payment (pmt) = 0.11 × 1,000,000 = $110,000
Time period (nper) = 10 years
Selling price of the bond is the present value of the bond which can be computed using spreadsheet function =PV(rate,nper,pmt,FV)
=PV(0.12,10,110000,1000000)
Present value of bond is $943,498 which is close to option (c)
Answer:
a) loss of 3,388.87
b) it will break even at 11.99%
Explanation:
we will discount the 151,000 at 13% to know the current sales revenue at the sale
Maturity 151,000
time 4 years
rate 0.13
PV 92,611.13
the present value is 92,611.13 while the cost is 96,000
there is a loss of 3.388,87
To know at which rate the firm break even:
PV = 96,000
![\sqrt[-4]{96,000/151,000} - 1 = r](https://tex.z-dn.net/?f=%5Csqrt%5B-4%5D%7B96%2C000%2F151%2C000%7D%20-%201%20%3D%20r)
r = 0.11989
Answer:
$392,000
Explanation:
Double-declining-balance method is (2/useful life) x cost -accumulated depreciation)
cost = purchase price - residual value
2/5 x( 1000000-20000)
= $392,000
Answer:
a. just-in-time inventory.
Explanation:
A newly launched twenty-first century addition to production strategy which leverages lean manufacturing strategies, Six Sigma best practices, and real-time actionable intelligence from the factory floor is called Just in Time Inventory
By definition, Just in time (JIT) inventory is a production strategy which improves efficiency by reducing and almost eradicating wastes by receiving goods when they are needed at the production floor, thereby reducing inventory costs by erasing holding costs
Answer:
Explanation:
According to the law of demand,a rise in price leads to a decrease in quantity demanded and a fall in price leads to an increase in quantity demanded.
1.The price of a gallon of 2% milk has risen, therefore, quantity demanded decreases.
2.The price of laser tag has fallen,therefore,quantity demanded increases.
3.The price of dressers and desks has risen,therefore,quantity demanded decreases.
4.The price of pork shoulder has fallen from $3.99 per pound to $1.99 per pound,therefore,quantity demanded increases.
5.Another MP3 album comes free,with purchase of an MP3 album .This means the supplier have effectively halved the price.therefore,quantity demanded increases.
