Answer:
6%
Explanation:
Current interest rate on one year bond = 5%
Forward interest rate on one year bond = 7%
To Calculate the interest rate on two year bond we use this:
Interest rate = [Current interest rate on one year bond + Forward interest rate on one year bond]/2
Interest rate = [5 + 7]/2 = 12/2 = 6%
Therefore,
The interest rate on two-year bond is equal to 6%.
Answer:
The correct answer is b.setting equipment utilization goals below industry average.
Explanation:
A firm cannot achieve competitive advantage by setting its equipment utilization goals as this will not retain its customers.
If a firm wants to achieve competitive advantage it can achieve it by;
Addressing its customers concerns and customizes the products according to their needs.
Providing customers their ordered products earlier than other companies lead time, which means increase in speed of delivery and shortens the delivery time.
Bring improvement and advancements in its products by using new technology.
Maintain a variety of different product options to cater the needs of its various customers. Offering them a wide range of products will probably reduce chances of customer switch.
Answer:
$84,250
Explanation:
The computation of the estimated inventory loss is shown below:
= Opening Inventory + Purchases - Cost of Sales
where,
Cost of sales is
= $494,000 ×100 ÷ 160
= $308,750
And, the opening inventory is $184,000
And, the purchase is $209,000
So, the estimated inventory loss is
= $184,000 + $209,000 - $308,750
= $84,250
We simply applied the above formula so that the estimated inventory loss could arrive
The minimum price that this order could be offered is at cost. Since there are no cost figures in this question, this is the best answer I can give.
You would need to at least sell the item for the amount of money it cost you to make, assemble, and ship the product.
Answer:
If CF0 is positive and all the other CFs are negative, then you can still solve for I
TRUE. This will be the formula for ordinary annuity.
This is the case of a loan on which the company receives a positive cash flow at the beginning and then makes subsequent cash payments, thus negatives cash flows.
Explanation:
If you have a series of cash flows, and CF0 is negative but each of the following CFs is positive, you can solve for I, but only if the sum of the undiscounted cash flows exceeds the cost
FALSE If the sum is below the cost then it will give a negative rate
To solve for I, one must identify the value of I that causes the PV of the positive CFs to equal the absolute value of the FV of the negative CFs. FALSE you can't compare a present value with a future as they are on different dates.
It is impossible to find the value of I without a computer or financial calculator.
FALSE There are method of approximation the difference is that the computer does this faster than humans.
If you solve for I and get a negative number, then you must have made a mistake
FALSE if the project return are lower than cost the rate will be negative.
