Answer:
The right solution is "$20.733.16".
Explanation:
According to the question,
Face value,
= $20000
Rate (r),
= .035
Bond A:
=
=
= ($)
Bond B:
=
=
= ($)
Lakatos Corporation uses an activity-based costing system with three activity cost pools. The company has provided the following
1 answer:
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Answer:
The investment that will have the highest future value is option b.
Explanation:
First lets suposse the effective annual rate is 10%
a. Future value= $2,500
c. First you must obtain the net present value of all cash flows with the formula attached, for example:
NVP= ($250/(1+10%)^1)+($250/(1+10%^2)+($250/(1+10%^3)... and so on until year 10
With the excel formula "NPV" you can calculate the net present value specifying the interest rate, the cash flows.
The NPV= $1,536.14
And then you calculate the future value of this answer with this formula:
VF=VP(1+i)^n
VF= $1,536.14*(1+10%)^10
VF=$3,984.36
b. If payments are due at the beginning of every year means that at year 0 you start with $250. You must calculate the NPV in this way
NPV= $250+($250/(1+10%)^1)+ )+($250/(1+10%^2)+($250/(1+10%^3)... and so on until year 10
NPV= $1,786,14
And then you calculate the future value of this answer:
VF= $1,786,14*(1+10%)^10
VF=$4,632.79
d. First, you must convert the annual interest rate into semi-annually interest
10% Annually effective is 4,88% Semi-anually effective
NPV=$125+($125/(1+4,88%)^1)+ )+($125/(1+4,88%^2)+($125/(1+4,88%^3)... and so on until period 20
NPV=$1,698.75
And then you calculate the future value of this answer:
VF= $1,698 *(1+10%)^10
VF=$4,405.37
The investment that will have the highest future value is option b.
Overall improvement of quality.
The goal is to Increase profits by eliminating existing product variability, defects and waste that are undermining customer loyalty.
I found a diagram on google that’s colorful and looks helpful if you’d like to doodle it in your notes ☺️
The goal is to Increase profits by eliminating existing product variability, defects and waste that are undermining customer loyalty.
I found a diagram on google that’s colorful and looks helpful if you’d like to doodle it in your notes ☺️