How did the REM system affect Otis Elevator's value chain?

Gina made a down payment on a motorcycle. What incentive did she have for making a down payment?

8_murik_8 [283]

Answer:

A reduced time in debt

Explanation:

Gina intends to purchase that motorbike on credit. By making a down-payment, Gina is reducing the amount she needs to borrow to buy the bike.

A reduced loan amount means that Gina will require less to repay. It also implies that the interest to be paid will reduce. Making the down-payment helps Gina stay in debt for a short period.

7 0

3 years ago

F 1What is the yield to maturity on a 10-year, 9% annual coupon, $1,000 par value bond that sells for $887.00? That sells for $1

Llana [10]

Answer:

When the bond is sale at premium, it means the market rate is lower than coupon rate. So investor purchase the bond a higher price until the bond yield equal the market rate

If sold at discount, the market rate is higher than coupon rate. This means it's sold below face value to increase the bond yield to market rate.

YTM if market price is 887 = 10.7366190%

YTM if market price is 1,134.2= 7.1764596%

Explanation:

For the YTM we can calculate an estimated using the following formula:

$YTM = \frac{C + \frac{F-P}{n }}{\frac{F+P}{2}}$

Where:

C= coupon payment 1,000 x 9% = 90

F= face value of the bonds = 1000

P= market price = 887

n= years to maturity = 10

YTM = 10.7366190%

$YTM = \frac{C + \frac{F-P}{n }}{\frac{F+P}{2}}$

C= 90

F= 1000

P= 1134.2

n= 10

YTM = 7.1764596%

A more precise answer can be achieve using excle or a financial calculator.

7 0

3 years ago

Seahorse Incorporated, which only has one product, has provided the following data concerning its most recent month of operation

ra1l [238]

Answer:

Unit product cost = $107

Explanation:

<em>Absorption costing is a method of costing where production units and inventories are value at the full cost per unit. Here, fixed overheads are charged to all units produced using an overhead absorption rate</em>

The full cost per unit = D.mat cost + D.labour cost + Variable overheads+ Fixed overheads

Fixed production overhead cost per unit

=Fixed manufacturing overhead/units produced

= $43,700/ 1,900 Units

=$23 per unit

Full cost per unit

= $42 + $31 + $11 + 23

= $107

7 0

3 years ago

Universal Containers' contact center manager needs to measure the following metrics: - Agent productivity - Customer satisfactio

VLD [36.1K]

Answer: Average handle time

First contact resolution

Explanation:

Since the center manager needs to measure the productivity of the agent and the customer satisfaction, the report that should be recommended by a consultant would be the average handle time and the first contact resolution.

The average handle time shows the time taken for a transaction to be completed. This can be used to determine the productivity of agents. Also, first contact resolution can be used to determine customer satisfaction as it shows the number if queries that were successfully resolved.

8 0

3 years ago

Colin is 40 years old and wants to retire in 27 years. His family has a history of living well into their 90s. Therefore, he est

NARA [144]

Answer:

$2.1 million

Explanation:

Colin will retire at 67 and expects to live 28 more years. Be believes that he will need approximately $112,500 (in current dollars) per year to live while he is retired. His social security benefits are $30,000 + $20,000 in a government sponsored annuity (in current dollars) per year, so that means that he needs to cover the remaining $62,500. In order to calculate this, I will assume that Colin receives his first distribution on his 67th birthday (annuity due) and each distribution is made on an annual basis and received on the subsequent birthdays until he turns 94 (28th distribution).

The $62,500 that Jordan expects to need once he retires must be adjusted to inflation (3%). In 27 years they will equal $62,500 x (1 + 3%)²⁷ = $138,830.56

Using an excel spreadsheet, I calculated the present value of Colin's 28 distributions using an 8% discount rate = $2,064,637.04 , which we can round up to $2.1 million

Colin currently has $200,000 in his retirement account and in 27 years (age 67), his account will be worth $200,000 x (1 + 8%)²⁷ = $1,597,612.29

this means that Colin will be $2,064,637.04 - $1,597,612.29 = $467,024.75 short

using the future value of an annuity formula, we can calculate the annual contribution:

annual contribution = future value / annuity factor

future value = $467,024.75
FV annuity factor, 8%, 27 periods = 87.35077

annual contribution = $467,024.75 / 87.35077 = $5,346.54

3 0

3 years ago