The purchase of capital equipment by a company, which would likely be quite an involved process, is an example of a NEW BUY situation.
The use of the term "capital equipment" hints that the company is newly established and they are buying their first equipments for the company. Thus, it's a new buy situation.
Answer:
The monthly fixed manufacturing cost is $7500.
Explanation:
Variable cost per unit = change in total cost / change in no of units
= 6900-5000/8000-4200
= 0.5 per unit
Fixed cost = Total manfacturing cost - variable cost at a 4200 level
= 5000 - (4200*0.5)
= 5000 - 2100
= $2900
If company produces 9200 units:
Total manfacturing costs = fixed costs + 9200*variable cost per unit
= 2900 + (9200*0.5)
= $7500
Therefore, The monthly fixed manufacturing cost is $7500.
Answer:
They would help the product that they are selling sell better and would provide examples that would help the product sell better. The better the product sells the better the sales person gets paid. they would likely need not much help sense a sales person is mostly just for the company to sell their product or service well.
Explanation:
I hope this helped
Answer:
a.
Assets Side
Required Reserves $10 million
Excess Reserves $51 million
Loans $70 million
Total $131 million
Liabilities Side
Checkable Deposits $120 million
Bank Capital $11 million
Total $131 million
b. Bank capitalization can be measured with bank Leverage Ratio.
= Capital/Assets
= 11/131
= 8.40%
Bank is considered well capitalized if ratio is above 5% so Oldhat Financial is well capitalized.
c. Risk Weighted Assets = $50 million
Risk weighted capital ratio = 22%
Commercial loans are 100% risk weighted = $ 30 million
Residential mortgages are 50% risk weighted = $ 20 millions
Total = $50 million.
Risk weighted Capital Ratio = Bank capital / Total risk weighted assets
= 11/50
= 22%
Answer:
Instructions are listed below.
Explanation:
Giving the following information:
A friend of Mr. Richards recently won a law suit for $30 million. They can either take the payments over 10 years or settle today for cash of $25 million. Mr. Richard is optimistic that he can earn a 6% return on the money and that they should settle for $25 million today and he will invest it for them.
First, we need to find the present value of the 30 million.
To do that we need to calculate the final value.
FV= {A*[(1+i)^n-1]}/i
A= annual deposit
FV= {3,000,000*[(1.06^10)-1]}/0.06= 39,542,385
PV= FV/(1+i)^n= 39,542,385/1.06^10= 22,080,261
B) Now we know that the present value of option B is higher. One dollar today is better than one dollar tomorrow. It is better to receive the money now to invest it.