Answer:
$4,372.71
Explanation:
Here for reaching the difference in PV between the first and the second offer first we need to follow some steps which is shown below:-
Step 1
Total payment due = Per tire × Bought tires
= $80 × 600
= $48,000
Step 2
Present value factor of 8.4% for 1 year = 1 ÷ (1 + Rate of interest)^Number of years
= 1 ÷ (1 + 8.4%)^1
= 1 ÷ (1 + 0.084)^1
= 1 ÷ 1.084
= 0.92251
Step 3
First offer
Present value = Total payment due × Present value factor of 8.4% for 1 year
= $48,000 × 0.92251
= $44,280.48
Step 4
Second offer
One year payment = Bought tires × Per tire
= 600 × $45
= $27,000
Step 5
Present value = One year payment × Present value factor of 8.4% for 1 year
= 27,000 × 0.92251
= $24,907.77
Step 6
Total present value = Present value of second offer + Tires cost
= $24,907.77 + $15,000
= $39,907.77
Here we can see that first offer is higher than second offer
So,
The difference between the first and the second offer = First offer - Second offer
= $44,280.48 - $39,907.77
= $4,372.71
Answer:
(D) 7 percent
Explanation:
Nominal interest rate is approximately equal to real interest rate + inflation rate
= 4% + 3%
= 7%.
Thus, the minimum nominal interest rate that Kaitlin would be willing to accept from her local bank is 7%.
Answer:
C. Businesses create goods for product markets to sell.
Explanation:
When we say arbitration, this is when there is a signed contract involved between two parties in order to settle a particular dispute. Arbitration is different from mediation in a way that arbitration is legally binding. The answer is option D. Hope this helps.
Answer:
$375
Explanation:
If Johnson will use the desired gross margin percentage to determine the selling price of its products, they must use the following formula:
selling price per unit = total manufacturing costs per unit / (1 - gross margin)
Total manufacturing costs = variable manufacturing costs + total fixed costs + batch level fixed overhead = $2,350,000 + $1,200,000 + $200,000 = $3,750,000
total manufacturing cost per unit = $3,750,000 / 20,000 units = $187.50
selling price per unit = $187.50 / (1 - 50%) = $187.50 / 50% = $375
