Answer:
Explanation:
Assume the initial invest at the beginning is $100.
The investment at end of year 4 is:
100 x 1.16 x 1.11 x 1.1 x 1.1 = 155.80
a) CAGR over the 4 years = (155.8 / 100 ) ^ (1/4) = 11.72%
b) Average annual return over 4 years = (16% +11% + 10% +10%) /4 = 11.75%
c) Since the returns over the 4 year period are not much volatile, average annual return is a better measure.
If the investment's returns are independent and identically distributed, Average annual return will be the better measure because there is no correlation between returns over the years and thus there is no point to take into consideration the compounding effect by using CAGR.
<span>With a Net 30 payment policy, but an average collection period of 75 days with customers, Hanson's furniture store, should either reduce their store credit option, and encourage approximately 45% of their store credit customers to pay upon receipt, or shorten their operating cycle.</span>
Answer:
b. decrease by $1,000
Explanation:
There is an option below the question ask for details
For computing the profit or loss, first we have to determine the variable cost per unit which is shown below:
= Total variable cost ÷ Number of cases sold
= $144,000 ÷ 9,000 cases
= $16 per cases
The total variable cost would be
= $126,000 + $18,000
= $144,000
And, profit per case is $15
So, the loss per case would be
= $15 per case - $16 per case
= -$1 per case
So, the total loss would be
= 1,000 cases × $1
= $1,000 decrease
Answer:
A court will most likely;
1. Allows the parties to rescind the contract.
Explanation:
The contract includes all the costs of insuring and shipping the painting from France to New York.
Since, the agent that made the shipping estimate makes a mistake when adding up the costs and, as a result, the shipping cost listed in the contract is $1,000 less than the actual shipping costs. A court will most likely allow the parties to rescind the contract because a part of the contract agreement has been breached in error.
