Answer:
D. Change and the cost of the activity is relevant to the decision.
Explanation:
Since flexible resources are supplied as needed, and their costs appear to be variable with demand, so change and the cost of the activity is relevant to the decision.
That is true, if you raise the rate then the present value falls.Of course, the present value will fall assuming the existence of positive cash flows. This annuity present value is divided into four pieces which are: the present value (PV), the periodic cash flow (C), the discount rate (r), and the number of payments, or the life of the annuity, (T).
Incomplete question. Assumed you are referring to this article;
Six years after turning the leadership of Costco Wholesale over to the then- president, Craig Jelinek, Jim Sinegal, Costco’s co-founder and chief executive officer (CEO) from 1983 until year-end 2011, had ample reason to be pleased with the company’s ongoing revenue growth and competitive standing as one of the world’s biggest and best consumer goods merchandisers. Sinegal had been the driving force behind Costco’s 35-year evolution from a startup entrepreneurial venture into the largest retailer in the United States, the seventh-largest retailer in the world, and the undisputed leader of the discounted warehouse and wholesale club segment of the North America retailing industry. Since January 2012, when Craig Jelinek took reins as Costco Wholesale’s president and CEO, the company had prospered growing from annual revenue of $89 billion and 598 membership warehouse at year-end fiscal 2011 to annual revenues of $126.2 billion and 741 membership warehouse at year-end fiscal 2017. Costco’s growth continued in the first nine months of fiscal 2018. 9-month revenue was $95.0 billion, up 12.0 percent over 9 months of fiscal 2017, and the company had opened four additional warehouses. As of June 2018, Costco ranked as the second-largest retailer in both the United States and the world.
<u>Explanation:</u>
Note, the threat arising from new competitors into a particular market refers to the likelihood that this company or business would overtake existing ones in their market share.
However, <em>recall </em>that we are told that Costco has been in the business for up to 35 years, and has become "the undisputed leader of the discounted warehouse and wholesale club segment of the North America retailing industry," this fact alone makes us and the new competitors weary of how difficult to acquire part of the market. This thus puts Costco at a competitive advantage.
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Answer:
The total amount would be $6,805
Explanation:
The computation of the amount paid is shown below:
invoice amount = $6,500 ($7000 - $500)
Less - discount ($6,500 × 3%) = ($195)
Net balance = $6,305
Add - freight charges = $500
Total amount paid = $6,805
In invoice amount, the freight charges are added, so first, we have to deduct the freight charges to get the actual value than we deduct the discount of 3% since the payment was made on April 30.
From 18 April to April 30, 13 days are there so we take a 3% discount rate since the payment was made within 30 days.
And, after that, the freight charges are added back to get the total amount which would be paid.