As more fax machines are produced, the opportunity cost of producing them

If bonds are issued at 101.25, this means that ____________________

Whitepunk [10]

Answer:

c.a $1,000 bond sold for $1,012.50.

Explanation:

We assume the par value is $1,000 and since the bond is issued at 101.25 that means its selling price is

= $1,000 × 101.25%

= $1,012.50

Since the bond is issued more than the face value that reflects the premium and if the bond is issued less than the face value so it is issued at a discount

So the right option is c.

4 0

3 years ago

C&A purchases fertilizer for its lawn-care business from a supplier who charges $30 per order and $50 per case. Each case co

Verdich [7]

Answer:

$1.5

Explanation:

Given:

Charges per order = $30

Charges per case = $50

1 case = 5 bags of fertilizers

Number of fertilizers bags needed per year = 2000 bags

Annual holding cost, C₀ = 30%

Now,

Annual demand for cases, D = $\frac{\textup{Number of fertilizers bags needed}}{\textup{Number of bags per case}}$

= $\frac{\textup{2000}}{\textup{5}}$

= 400 cases

thus,

Annual unit holding cost per case, $C_h$ = 30% of $50 i.e $15

Thus,

Economic Order quantity ( EOQ ) = $\sqrt{\frac{2C_oD}{C_h}}$

on substituting the respective values, we get

EOQ = $\sqrt{\frac{2\times30\times400}{15}}$

or

EOQ = 40

Now,

Annual ordering cost = Ordering cost × Number of orders

= C₀ × $\frac{\textup{annual demand}}{\textup{EOQ}}$

= $30 × $\frac{\textup{400}}{\textup{40}}$

= $300

Annual inventory holding cost

= Annual unit inventory holding cost × Average inventory

= $C_h$ × $\frac{\textup{EOQ}}{\textup{2}}$

= $15 × $\frac{\textup{40}}{\textup{2}}$

= $300

Now,

Sum of annual ordering and holding cost per case of fertilizer

= $300 + $300

= $600

Therefore,

Annual ordering and holding cost per case of fertiliser

= $\frac{\textup{600}}{\textup{Annual demand}}$

= $\frac{\textup{600}}{\textup{400}}$

= $1.5

7 0

3 years ago

Martin's coin collection contains hundred 1960 silver dollars. Her grandparents purchased them at their face value ($50 each) in

Readme [11.4K]

Answer:

FV= $33,094.2

Explanation:

Giving the following information:

Present value (PV)= 50*100= $5,000

Number of periods (n)= 2020 - 1960= 60 years

Apreciation rate (g)= 3.2% = 0.032

<u>To calculate the value of the collection in 2020, we need to use the following formula:</u>

Future value= PV*(1 + g)^n

FV= 5,000*(1.032^60)

FV= $33,094.2

4 0

3 years ago

According to empirical studies, greater consumption is likely to lead to unhappiness. This condition is called _____.

Zarrin [17]

Answer:

Affluenza.

Explanation:

It is a term that described to be psychological and socio-metaphorical illness seen amongst children or also in teens who grow up in a privileged lifestyle, largely isolated emotionally and developmentally from their working parents etc. In most cases according to research, it is seen to make such children feel more isolated than their friends, while at the same time feeling an increase in pressure to perform.

The effect of this affluenza is also seen to make such people to have a feeling of giving themselves excessive pressure to achieving things, these includes in both academic and extracurricular activities.

5 0

3 years ago

Borghia Pharmaceuticals has $1 million allocated for capital expenditures. a. Which of the following projects should the company

balu736 [363]

Answer:

Please refer below the answer in detail

Explanation:

a)

With a limited budget, the firm will first pursue projects with the highest return, and the allocate the remaining capital to the project with the second highest return, and so on until all capital is fully allocated. Based on the information, Project 6 has the highest return, followed by 1 and 3. These three projects together will cost:

350,000 + 300,000 + 250,000 = $900,000

After those three projects, the firm will have $100,000 left. The best out of remaining project is 7, but it costs 400,000, which the firm cannot afford. The best affordable project is 4, which offers a return of 12.1%. Hence, the firm should spend the remaining 100,000 on project 4.

b)

The budget limit constraints the firm to give up project 7, which offers a NPV of $48,000. The firm is forced to choose project 4, which has a NPV of $14,000.

Thus the lost in market value of the firm = 48,000 - 14,000 = $34,000.

4 0

3 years ago