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Law Incorporation [45]
3 years ago
14

Slaughter Industries just signed a sales contract with a new customer. What is this contract worth as of the end of year 4 if th

e following payments will be received and the firm earns 6 percent on its savings
Business
1 answer:
igor_vitrenko [27]3 years ago
8 0

Answer:

$489,512.15

Explanation:

The formula for calculating future value:

FV = P (1 + r)^n

FV = Future value  

P = Present value  

R = interest rate  

N = number of years

We are supposed to determine the present value

Present value is the sum of discounted cash flows

Present value can be calculated using a financial calculator

Cash flow in year 1 = 84,000

Cash flow in year 2 = 113,000

Cash flow in year 3 = 125,000

Cash flow in year 4 = 130,000

I = 6%

PV =  387,739.47

387,739.47(1.06)^4 = $489,512.15

To find the PV using a financial calculator:

1. Input the cash flow values by pressing the CF button. After inputting the value, press enter and the arrow facing a downward direction.

2. after inputting all the cash flows, press the NPV button, input the value for I, press enter and the arrow facing a downward direction.  

3. Press compute  

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Luxury Linens Inc. produces the highest thread-count sheets available anywhere and does so at a price that none of its competito
vfiekz [6]

Answer: Sustainable competitive advantage

Explanation:

  The sustainable competitive advantage is basically refers to the abilities attributes and the quality of an organization that are different from the others competitors as it basically favorable to the long term position in the market.

The main objective of the sustainable competitive advantages is that it providing an efficient advantages in this competitive environment. Product differentiation, low cost provider and the strategic asset are the main advantages.  

According to the given question, the luxury linens Inc. is basically producing the high thread count and it measuring the various types of advantages such as profit, effective products of an organization.

Therefore, Sustainable competitive advantage  is the correct answer.

7 0
3 years ago
The market for a good was in equilibrium. A change occurred which resulted in a new equilibrium with a higher price for the good
aev [14]

Answer:

C) The supply curve moved to the left.

Explanation:

A supply curve shift to the left due to a reduction in the quantity supplied to markets. When the market is at equilibrium, a decrease in supply will likely to create a shortage. Buyers will compete to buy the few available items at the price that suppliers will demand. Suppliers will take advantage of the " increase " in demand to raise prices.

A reduced supply means that the quantity available in the market decreases. At equilibrium, the quantity supplied matches demand, but when supply decreases, the quantity supplied also decreases.

4 0
3 years ago
Which of the following statements about normal costing is not true? Group of answer choices Manufacturing overhead is allocated
Katena32 [7]

Answer:

Direct costs are traced using an actual rate, and indirect costs are allocated using a budgeted rate

Explanation:

Normal costing refers to the actual cost of direct materials, direct labor, and manufacturing overhead applied. This cost is calculated by using a predetermined annual overhead rate.

Direct costs are expenses involved in producing goods or providing services and indirect costs are general expenses that are involved in operating.

The statement about normal costing which is not true is ''Direct costs are traced using an actual rate, and indirect costs are allocated using a budgeted rate''

5 0
3 years ago
Calculate the planned shortage in dollars if the planned shortage % is 1.64% and the planned net sales are $1,189,000.
EleoNora [17]

Answer:

the planned shortage in dollars is $19,499.60

Explanation:

The computation of the planned shortage in dollars is shown below:

= Percentage of planned shortage × planned net sales

= 1.64% × $1,189,000

= $19,499.60

hence, the planned shortage in dollars is $19,499.60

We simply applied the above formula so that the correct value could come

And, the same is to be considered

6 0
2 years ago
Under the allowance method, Bad Debt Expense is recorded
AVprozaik [17]
The correct option is A.
Under the allowance method, bad debt expense is recorded FOR AN AMOUNT WHICH THE COMPANY ESTIMATES IT WILL NOT COLLECT.
Allowance method is a method of accounting that is used to estimate the amount of uncollectibles at the end of each financial period. Uncollectibles refers to debts which the company has no hope of ever collecting them again.
3 0
3 years ago
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