Answer: Variable cost pricing
Explanation:
Marianne wants to sell in Mexico by setting the selling price in such a way that she adds the total variable cost to the markup. This way she would meet her cost and gain some level of profit.
Explanation:
At equilibrium demand price=supply price
Therefore consumer surplus is 15 units.
Answer:
the pre tax cost of debt is 3.98%
Explanation:
The computation of the pre tax cost of debt is shown below;
Pre tax cost of debt is
= (Annual interest + (par value - market price) ÷ (number of years) ÷ (par value + market price) ÷ 2
= (0.05) + ($1,000 - $1,140) ÷ (20) ÷ ($1,000 + $1,140) ÷ 2
= 3.98%
Hence, the pre tax cost of debt is 3.98%
We simply applied the above formula so that the correct value could come
And, the same is to be considered
Answer:
The Present Value (PV) of the car is $13,614
Explanation:
Computing the Present Value of the car using the excel formula of Present Value which is as:
=PV(rate,nper,PMT,fv,type)
where
rate is 9%
nper is number of years is 5
PMT is annual payments which is of -$3,500
FV is Future value which is not given
Type is 0
Putting the values above:
=PV(9%,5,-3500,0)
= $13,613.78 or $13,614
Therefore, the present value of the car amounts to $13,614