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Fofino [41]
1 year ago
15

Suddeth Corporation has entered into a 6 year lease for a building it will use as a warehouse. The annual payment under the leas

e will be $2,468. The first payment will be at the end of the current year and all subsequent payments will be made at year-ends. If the discount rate is 5%, the present value of the lease payments is closest to (Ignore income taxes.):A) $12,528B) $14,103C) $14,808D) $11,050
Business
1 answer:
ratelena [41]1 year ago
6 0

Answer:

A) $12,528

Explanation:

We should consider the rent payment as an annuity. Because we are paying, it should be considered the present value of an annuity.

C \times \frac{1-(1+r)^{-time} }{rate} = PV\\

C  2,468

time 6

rate         0.05

2468 \times \frac{1-(1+0.05)^{-6} }{0.05} = PV\\

PV $12,526.8080

We are asked for the closet option, so we have to chose A) 12,528

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C&A sells T-shirts for $20 that cost $5 to produce. The annual holding cost percentage is 10% and the T-shirts turn 25 times
ad-work [718]

Answer:

$0.02

Explanation:

C&A sells T-shirts for $20 that cost $5 to produce

The annual holfing cost percentage is 10%

The T-shirts turn 25 times a year

The first step is to calculate the holding cost

= $5 × 10/100

= $5 × 0.1

= 0.5

Therefore, since the T-shirts turn over 25 times a year then, the holding cost that C&A incurs for each T-shirts can be calculated as follows

= 0.5/25 times

= $0.02

Hence C&A incur a holding cost of $0.02 for each T-shirts

4 0
2 years ago
As the television industry has changed in the last few decades from just three major networks to a multiplicity of networks, one
Ket [755]

Answer:

The answer is narrower competitive scope.

Explanation:

In a narrow competitive scope, a business might choose a focus strategy which can be oriented to cost leadership or differentiation. When implementing a focus strategy, the company chooses to only produce goods or provide services to a certain segment of people. In a cost leadership strategy, the business might choose to engage on initiatives that would lead it to be identified from its ability to provide the lowest possible price for its target segment. When choosing a differentiation strategy instead, the company’s competitive advantage would be its ability to provide a wide range of products.

4 0
2 years ago
The management of Bonga Corporation is considering dropping product D74F. Data from the company's accounting system for this pro
Lapatulllka [165]

Answer:

$-58,000

Explanation:

As we are computing for operating income earned as per the company's accounting system, we will use all absorbed and allocated costs.

Sales                                                          $830,000    

Less:

Variable expenses                                    $390,000

Manufacturing expenses                          $266,000

Fixed Selling and Admin                            $232,000

Profit as per Accounting system               $-58,000

According to the accounting system, there is a loss of $58,000 for D74F

Hope that helps.

8 0
2 years ago
Read 2 more answers
Susan is creating a spreadsheet and she needs to enter the days of the week in column A. Susan should _____. Enter Sunday in cel
Yuri [45]

Enter January in A1 hold mouse in bottom right hand corner of cell. Hold mouse button down and drag the mouse. Excel will populate the months of the year

4 0
1 year ago
Read 2 more answers
Activities included (and not included) in the calculation of GDP
Dahasolnce [82]

Answer:

Gross Domestic Product

Activities included and excluded:

1. The gross domestic product (GDP ) of the United States is defined as the monetary value of all finished goods and services in a given period of time.  The important thing to note here is that GDP is the market value of all final goods and services produced within a country in a given period of time.  This means that intermediate goods are not included.

2. Indication of Inclusion or Exclusion in 2018 GDP:

a) Calculo = excluded

b) Rotato = included

c) An accountant = excluded because of year, 2019

d) Fastline = included

e) Awake = included

Explanation:

1) The importation of the calculator into the United States does not form part of domestic production, and as such will be excluded.

2) Rotato's production on September 25, 2018 will be included, with an exclusive focus on whether the production of the set of tires increases GDP directly.

3) The accountant's work would have been included if it were done in 2018.

4) Fastlane's production will be included.

5) Awake's production will be included.

7 0
2 years ago
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