Answer: Option B
Explanation: Globalization refers tot he process under which certain business entities starts operating their business in many different countries of the world.
One of the major reasons behind the increasing globalization is the condition in developing nations. The developing nations like India and Pakistan have a large population with a strong purchasing power, but due to lack of technology and capital these economies lack competitive producers.
Therefore, every second business firm with sufficient resources wants to operate in these economies for profit maximization.
Answer:
Head of household.
Explanation:
Cox can qualify as a head of household because he provides full support for a minor child for more than six months.
Currently a head of household has lower tax rates compared to single filers or married people filing separately, head of household 22% tax rate starts at $52,851, while a single filer's 22% tax rate starts at $39,476.
Answer:
The price of the bond is $104.15
Explanation:
The price of the company's new two year debt is the present value of its future cash flows.
Since the debt pays coupon semi-annually the number of coupons payable over two years is 4 and pays par value with the fourth coupon.
Yield to maturity is 3.9%+0.8%=4.7%/2=2.35% (semi-annually)
coupon rate is 6.9%/2=3.45%
PMT=3.45%*100
PMT=$3.45
par value $100
nper=2*2=4
Using present value formula in excel
pv=(rate,nper,pmt,fv)
pv=(2.35%,4,3.45,100)
pv=$104.15
Answer:
1. Assuming a discount rate of 14%, compute the net present value of each piece of equipment.
- Puro equipment: $255,203
- Briggs equipment: $318,944
2. A third option has surfaced for equipment purchased from an out-of-state supplier. The cost is also $560,000, but this equipment will produce even cash flows over its 5-year life. What must the annual cash flow be for this equipment to be selected over the other two
Explanation:
Year Puro Equipment Briggs Equipment
0 -$560,000 -$560,000
1 $320,000 $120,000
2 $280,000 $120,000
3 $240,000 $320,000
4 $160,000 $400,000
5 $120,000 $440,000
I used an excel spreadsheet to calculate the NPVs
the PV of the third equipment's annual cash flow should be higher than $878,944 (PV of Brigg's cash flows = $560,000 + $318,944)
now I used a annuity table: annuity factor for 5 years and 14% is 3.4331
cash flow x 3.4331 ≥ $878,944
cash flow ≥ $878,944 / 3.4331 = $256,021
