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Aneli [31]
3 years ago
15

Mr. Hugh Warner is a very cautious businessman. His supplier offers trade credit terms of 3/19, net 60. Mr. Warner never takes t

he discount offered, but he pays his suppliers in 50 days rather than the 60 days allowed so that he is sure the payments are never late. What is Mr. Warner's cost of not taking the cash discount
Business
1 answer:
vekshin13 years ago
3 0

Answer:

35.92%

Explanation:

The computation of cost of not taking the cash discount is shown below:-

Discount percentage ÷ (100 - Discount percentage) × (360 ÷ (Full Allowed Payment Days - Discount Days))

= 3% ÷ 97% × 360 ÷ (50 - 19)

=  3% ÷ 97% × 360 ÷ 31

=  0.03093 × 11.61290

= 0.359187

= 35.92%

Therefore for computing Mr. Warner's cost of not taking the cash discount we applied the above formula.

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The lack of marketing information about religion is primarily due to ________. Select one:
kobusy [5.1K]

Answer:

d.

Explanation:

religion being somewhat of a taboo subject among researchers

Most researchers especially science researchers don't believe there exist any religion. Some of them are free thinker, they believe things just happened through evolution.

6 0
3 years ago
Hindelang Inc. is considering a project that has the following cash flow and WACC data. What is the project's MIRR? Note that a
lubasha [3.4K]

Answer:

MIRR = 16.6%

Explanation:

We have the formula to calculate the MIRR of the project:

+) MIRR =\sqrt[n]{\frac{FV}{PV} } - 1

In which:

  • FV - terminal value, the future value of net cash inflow which is assumed to be re-invested at the rate of cost of capital = WACC = 12.25%
  • PV - the present value of the net cash outflows during the investment at the rate of cost of capital = WACC
  • n: numbers of years (n=4)

The future value of net cash inflow Year i = Cash inflow × (1 + Cost of capital)^(number of years reinvested)

= Cash inflow × 1.1225^(n - i)

+) FV1 = 300 * 1.1225^{3} = $424.327

+) FV2 = 320 * 1.1225^{2} = $403.202

+) FV3 = 340 * 1.1225^{1} = $381.65

+) FV4 = 360 * 1.1225^{0} = $360

<em>=> Terminal Value = 424.327 + 403.202 + 381.65 + 360 = $1569.179</em>

<em />

Present Value Year i = \frac{Cash flow}{(1+WACC)^{i} } = \frac{Cash flow}{1.1225^{i} }

The project requires the initial investment = - $850 and there are no cash outflows during 4 years of the project

<em>=> PV of the project = PV Year 0 = </em>\frac{850}{1.1225^{0} }<em> = 850</em>

=> MIRR = \sqrt[4]{\frac{1569.179}{850}}  - 1 =  0.166 = 16.6%

6 0
3 years ago
Samantha owned 1,000 shares in Evita, Inc., an S corporation, that uses the calendar year. On October 11, Samantha sells all of
zaharov [31]

Answer:

Option "D" is the correct answer to the following statement.

Explanation:

Given:

Stock basis at opening = $60,000

Ordinary income for the  Taxable year = $22,000

Distribution receive = $35000

Computation of stock at the time of sales.

Stock at the time of sales = Stock basis at opening + Ordinary income for the Taxable year - Distribution receive

= $60,000 + $22,000 - $35,000

= $82,000 - $35,000

= $47,000

8 0
3 years ago
A disadvantage of a short-term contract as an alternative on the make-or-buy continuum is that ______. Multiple choice question.
Serggg [28]

A disadvantage of a short-term contract as an alternative on the make-or-buy continuum is that: B. the supplying firm has little reason to perform transaction-specific investments.

A short-term contract can be defined as a fixed term contractual agreement between two or more parties that has a definite duration of not more than one year or 24 months.

Hence, a short-term contract is characterized by a specific and limited amount of time.

A make-or-buy continuum can be defined as an act of making a strategic choice between manufacturing (making) a product internally (in-house) or buying the product from an external supplier.

Basically, one of the disadvantages of using a short-term contract as an alternative to the make-or-buy continuum is that, the supplying firm has little or no reason to perform transaction-specific investments i.e a non-transferable investment that has a unique utility.

Read more; brainly.com/question/23439561?referrer=searchResults

8 0
3 years ago
Which of the following is a limitation of group decision making? A. It reduces ownership and buy-in. B. It unleashes the creativ
zubka84 [21]

Answer: C. It requires adequate time and good leadership to be successful is a limitation of group decision making.

Explanation: Group decision making involves two or more people who are participatory in making decisions that are the responsibility of the entire group and is defined as the processes of evaluating situations or problems, considering alternative solutions, making choices, and following them up with the necessary actions. However, since decision‐making process is extremely short, and mental reflection is essentially instantaneous, it requires adequate time and good leadership (who effectively chooses group members, frames the decision, and organizes the decision process) to be successful, which poses a limitation.

8 0
3 years ago
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