Answer:
(a) that the traditional format organised cost into cost of goods sold and selling and administrative expenses while contribution format organizes cost into variables and fixed cost
Answer:
B. $215 million
Explanation:
The present value of the payment can be found by discounting each cash inflow by the 6% discount rate.
The present value can be found using a financial calculator:
The cash flow for year one = $89
The cash flow for year two = $58
The cash flow for year three = $42
The cash flow for year four = $32
The cash flow for year five = $25
All cash flows are in millions
I = 6%
NPV = $214.87 Million
I hope my answer helps you
Answer:
the company should enter into a forward contract.
Explanation:
Based on the information provided within the question it can be said that the in order to achieve this the company should enter into a forward contract. This is a type of contract entered by two parties in which one is obligated to buy while the other is obligated to sell at a fixed price and at a future date regardless of changes in circumstances or economy. Therefore reducing the market risk that they buyer is exposed to.
Answer:
is called a forbearance and is adequate legal consideration for a contract.
Explanation:
A contract can be defined as an agreement between two or more parties (group of people) which gives rise to a mutual legal obligation or enforceable by law.
Mutual assent is a legal term which represents an agreement by both parties to a contract. When two parties to a contract both have an understanding of the parameters, terms and conditions surrounding a contract, it ultimately implies that they are in agreement; this is generally referred to as mutual assent.
Under contract law, a promise not to do something that a person could otherwise do is called a forbearance and is adequate legal consideration for a contract.
For example, a creditor who decides to forebear by refusing to collect money from a debtor.
