Answer:
Maximum amount to be paid = $ 11,978.13
Explanation:
<em>This is an example of an annuity . </em><em>An annuity </em><em>is a series of periodic equal cash inflows or cash outflows occurring for certain number of years.</em>
<em>The maximum amount to be paid would be the present value (PV) of the cash flows discounted at the required rate of return of 8%</em>
This would be be done using the formulae below:
PV = A × 1 - (1+r )^(-n)/r
A- 3000 r - 8%, n - 5
PV = 3000× 1 -(1.08^(-5))/0.08
= 3000 × 3.9927
= $ 11,978.13
Maximum amount to be paid = $ 11,978.13
Answer:
The description is for Colombia.
Explanation:
In Colombia and any Latin American country, the business creation process is usually more complicated due to the different types of legal procedures that must be carried out, which often ends up increasing informality levels. In the United States, the process is usually easier, since it takes no more than three days and can be done electronically. In Colombia, for example, a different procedure must be carried out for each national or territorial body (local and national taxes), commercial constitution, among other procedures that take approximately one month to complete. In addition, many of these obligations require the advice of a certified accountant who is the most suitable professional to carry out this procedure.
Answer:
b. Relevant range includes all possible levels of activity that a company might experience.
Explanation:
In the cost-volume profit analysis, there are following assumptions which are described below:
1. There are two types of cost i.e variable cost and the fixed cost.
2. The sale mix remains same in case of multi product company
3. The volume of sales equals to volume of production
4. The cost is linear over the appropriate range i.e variable cost per unit and the fixed cost which remains same plus the selling price is also constant.
