Answer:
a. The cost of the marble will be expensive because of the bargaining power of the supplier.
Explanation:
Answer:
c. 10.17%
Explanation:
we can use the future value formula:
future value = present value x (1 + r)ⁿ
- future value = $19,600,000
- present value = $8,200,000
- n = 9
$19,600,000 = $8,200,000 x (1 + r)⁹
$19,600,000 / $8,200,000 = (1 + r)⁹
(1 + r)⁹ = 2.390243902
⁹√(1 + r)⁹ = ⁹√2.390243902⁹√
1 + r = 1.101663943
r = 1.101663943 - 1 = 0.101663943 = 10.17%
Answer: $13,020,000
Explanation:
Given that,
Tax rate = 30%
Total interest payment for the year just ended = $43,400,000
Interest Tax Shield = Tax rate × Total interest payment
= 30% × $43,400,000
= 0.30 × $43,400,000
= $13,020,000
Therefore, the interest tax shield is $13,020,000.
Answer:
$1,200
Explanation:
Given that
Purchase of a customer delivery van = $50,000
discount rate = 20%
Present value of future cost savings = $51,200
Yield = 20%
Based on the above information, as per the net present value the initial cost of the equipment should not be more than the present value of cash inflows i.e. $51,200
So the more than amount is
= $51,200 - $50,000
= $1,200
