Since the cost of $20,000 has been incurred two years ago, the firm should check and see as to how many units of the product were produced in the two years. Did the firm produce enough items to break even the cost of acquisition. Additionally the business should also check the current market value of this two year old equipment. The business manager should weigh in the savings that is to be obtained from outsourcing along with the resale value of the old machine and then take a declension as to whether the company should go for outsourcing. Also, the business manager must examine whether the outsourcing can happen for the long run. This is because two years down the line, outsourcing may have increased the cost and again another process may look attractive. So a through cost benefit analysis should be made before taking a decision.
The quote could be seen on page number 186.
This is one of the famous quote from a book called 'I am Malala'
The book told a story about a girl that grew up in the Taliban and have to experience many form of silencing and thought policing.
The quote indicated that people often forget how good it is to live in a place where you could express your opinion freely.
Answer:
(a) 5.5%
Explanation:
Yield-to-maturity (YTM) is the discounting rate for calculating the present value of bond & coupon received.
Bond price = Present value of interest received + present value of bond
⇔ 1040 = 70/(1+ YTM)^3+70/(1+ YTM)^2+70/(1+ YTM) + 1000/(1+YTM)3
It's really difficult to solve above equalation, then we try every hint provived.
(a) 5.5% ->True
70/(1+ 5.5%)^3+70/(1+ 5.5%)^2+70/(1+ 5.5%) + 1000/(1+5.5%)^3 = 1040
(b) 4.9%
70/(1+ 4.9%)^3+70/(1+ 4.9%)^2+70/(1+ 4.9%) + 1000/(1+4.9%)^3 = 1057
(c) 6.4%
70/(1+ 6.4%)^3+70/(1+ 6.4%)^2+70/(1+ 6.4%) + 1000/(1+6.4%)^3 = 1016
(d) 6.8%
70/(1+ 6.8%)^3+70/(1+ 6.8%)^2+70/(1+ 6.8%) + 1000/(1+6.8%)^3 = 1005
(e) 7.4%.
70/(1+ 7.4%)^3+70/(1+ 7.4%)^2+70/(1+ 7.4%) + 1000/(1+7.4%)^3 = 990
Answer:
The answer is B. $5,131
Explanation:
Cash balance per bank ---$13,801
Add:
NSF check----------------------$ 2,274
Service charge --------------- $58
Deposit in transit -------------$4,656
$20,789
Minus:
Outstanding checks----------$9,827
Note receivable collected by bank
---------------------------------$5,831
The cash balance per books (before adjustments. $5,131