On basis of straight-line depreciation method,
Yearly depreciation expense = [Cost of investment - Salvage value] / life
In the current case, salvage vale is assumed to be $0 and the life is 7 years.
Total investment = $4 m + $ (15,000/1,000,000) m + $3 m = $7.015 m
Therefore,
Yearly depreciation expense = 7.015/7 ≈ $1.002 m
‘Junk status’ is a term describing a country which has fallen below desirable levels of investment according to international rating agencies. <span>Overseas investors would withdraw their money and the government would have to pay much higher interest rates to borrow money to service and repay its massive loans such as those which Eskom, SAA and other State-owned enterprises had built up. Interest rates would go up and the value of the rand would shrink.</span>
Answer: Supply chain
Explanation: The sequence of steps taken by the company for production and delivery of the good or service produced is called supply chain.
In simple words, supply chain can be defined as the network a company shares with its suppliers to effectively distribute goods to the consumer.
From the above explanation we can conclude that the right answer is SUPPLY CHAIN.
Answer:
<em><u>It would generate a financial disadvantage for 62,800</u></em>
Explanation:
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It would generate a financial disadvantage for 62,800
Because the product, while is having a loss, their contribution cover is enought to cover at least the avoidable fixed cost.
