Answer:
$1932.37
Explanation:
To find out how much additional money he must deposit if he waits for 1 year rather than making a deposit today we need to find the difference:
Difference = Value after 1 year - Present value
We first convert the interest rate percentage by dividing interest rate value by 100
Present Value = $40 000 / (1 + 0.035)5 = $7729.47
Value after 1 year = $40 000 / (1 + 0.035)4 = $9661.81
Difference = $9661.81 - $7729.47 = $1932.37
Answer: $50,301
Explanation:
If they offered the new terms of 2/10, net 30 then 45 percent of their customers would pay on day 10 with the remainder paying on average in 32 days.
The collection period would therefore be;
= 0.45 * 10 + 0.55 * 32
= 22.1 days
Currently the Average Daily sales are;
= Average Receivables/ Average collection period
= 211,410/29
= $7,290
With the new collection period their Average receivables would be;
= 7,290 * 22.1
= $161,109
Potential cash to be freed up = Current Receivables - New receivables
= 211,410 - 161,109
= $50,301
Answer:2,3,4,5
is the answer, just took the assignment
Explanation:
Answer:
Option A net worth -215,906.03
Option B net worth -210, 159.75
It is a better deal to use the machine through lease than purchase it as the net worth is lower.
Explanation:
Purchase the machine:
-164,000 purchase cost
PV of the maintenance cost
C -9,000.00
time 10
rate 0.08
PV -$60,390.7326
PV of the salvage value
Maturity 14,000.00
time 10.00
rate 0.08000
PV 6,484.7088
<em>net worth: </em>
-162,000 - 60,390.73 + 6,484.70 = -215,906.03
PV of the lease: (annuity-due)
C 29,000.00
time 10
rate 0.08
PV $210,159.7494
Answer:
Exclusive.
Explanation:
In this scenario, Marco traveled across three states to shop at Tiffany's to buy his girlfriend, Jana, a present. This is the only Tiffany's store in the entire region. The degree of channel coverage for Tiffany's is exclusive.
In marketing, there are basically three (3) types of market channel coverage used by businesses;
1. Intensive market coverage: this involves a company extending its products to as many sales outlets as possible. Therefore, it's a saturation coverage of the market. Some examples are softdrinks, beer, or cigarettes company.
2. Selective market coverage: it involves a company using a limited number of sales outlets to sell its products in a region. Thus, it lie between an intensive distribution and exclusive market coverage.
3. Exclusive market coverage: this involves a company extending its products to only one sales outlets. Thus, it is the exact opposite of an intensive market coverage and a complex form of selective market coverage. It gives companies prestige and improves brand quality perceptions.
<em>Hence, the degree of channel coverage for Tiffany store is exclusive market coverage. </em>
