Final answer BestElectronics offers tradediscounts of 30%, 20%, and 10% insequence. If the list price of an itemis $1,000,after all discounts.is the final price

To calculate the final price after sequential trade discounts of 30%, 20%, and 10%, we can apply…

Answered: Best Electronics offers trade discounts…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Calculate the net present value of the machine assuming a 6% discount rate. (If the net present value is negative, use either a negative sign preceding the number eg-45 or parentheses eg (45). For calculation purposes, use 5 decimal places as displayed in the factor table provided, e.g. 1.25124. Round present value answer to O decimal places, e.g. 125.) Net Present Value $ Should the company buy the machine based on your results? Further investigation reveals that there would be a sales increase of $7,000 annually as a result of an increase in quality from the customer's perspective and a cost reduction of $2,800 annually as a result of lower warranty claims. Considering these additional facts, calculate the Net Present Value of the machine. (If the net present value is negative, use either a negative sign preceding the number eg -45 or parentheses eg (45). For calculation purposes, use 5 decimal places as displayed in the factor table provided, e.g. 1.25124. Round present value answer…
The following graph shows the contingency graph for purchasers of euro call options, with a premium of $0.04 and an exercise price of $1.42. NET PROFIT PER UNIT (Dollars per unit) 0.05 0.04 0.03 0.02 0.01 0 H -0.01 -0.02 -0.03 -0.04 17 -0.05 O 1.38 1.40 1.42 1.44 1.46 1.48 1.50 1.52 1.54 1.56 FUTURE SPOT RATE (Dollars per euro) (?) According to the graph, if the spot rate turns out to be $1.48, and the option is exercised, the buyer will According to the graph, break-even price is $1.46 lose gain per unit.
b) A trader buys a set of accessories that is listed at RM8000 with trade discounts of 15% and 5%. If he sells the set at a net profit of 40% based on cost, the operating expenses are 8% on cost, find i) the net profit, ii) the selling price, iii) the breakeven price, iv) the maximum markdown that could be given without incurring any loss.
The current spot rate for USD/GBP is 1.058 1.086. If you were to buy £4,799,207 worth of dollars and then sell them five minutes later, how much would the dealer make on your transactions? I
An item is originally priced to sell for $85 and is marked down 20%. A customer has a coupon for an additional 35%. What is the total percent reduction and the final selling price? The total percent reduction is %. The final selling price is $.
You have estimated spot rates as follows: r1 = 6.80%, r2 = 7.20%, r3 = 7.50%, r4 = 7.70%, r5 = 7.80%. a. What are the discount factors for each date (that is, the present value of $1 paid in year t)? (Do not round intermediate calculations. Round your answers to 3 decimal places.) b. Calculate the PV of the following $1,000 bonds assuming an annual coupon and maturity of : (i) 6.8%, two-year bond; (ii) 6.8%, five-year bond; and (iii) 11.8%, five-year bond. (Do not round intermediate calculations. Round your answers to 2 decimal places.)
You have estimated spot rates as follows: r₁ = 6.10%, r2 = 6.50%, r3 = 6.80 %, r4 = 7.00 %, r5 = 7.10%. a. What are the discount factors for each date (that is, the present value of $1 paid in year t)? (Do not round intermediate calculations. Round your answers to 3 decimal places.) Year 1 2 3 4 5 Discount Factors b. Calculate the PV of the following $1,000 bonds assuming an annual coupon and maturity of: (i) 6.1%, two-year bond; (ii) 6.1%, five- year bond; and (iii) 11.1%, five-year bond. (Do not round intermediate calculations. Round your answers to 2 decimal places.) b-i 6.10%, two-year bond b-ii 6.10%, five-year bond b-iii 11.10%, five-year bond Present Value
Calculate the issue price
What’s the equivalent interest rate to the terms 3/20, n/60? In other words, what is the effective annual rate that is "given" to a customer for this cash discount? (Use 365 days.) HINT: Use the I = P x R x T formula where R = I/PT and choose some value for the gross amount of the invoice (i.e $1,000). Label (%) and round to the nearest whole percent.
Two alternative courses of action have the following schedules of disbursements. If the MARR is 6% which alternative should be selected? Use present worth analysis. Show your calculations in your working document. Also note that in periods 4 and 5, the values for option B should be - 400 and - 500 respectively. Year 0 1 2345 2 3 A B -$1,300 0 0 0 0 0 $1,300 - $100 -200 -300 400 500 $1,500
A T-bill quote sheet has 110-day T-bill quotes with a 4.95 bid and a 4.83 ask. If the bill has a $10,000 face value, What is the dollar price can an investor buy this bill for? 11 Commah Toale Table
The expression “2/10, net 45” means that the customers receive a 2% discount if they pay within 10 days; otherwise, they must pay in full within 45 days. What would the seller's cost of capital have to be in order for the discount to be cost justified? 24.8571% 19.8571% 20.8571% 23.8571%

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Best Electronics offers trade discounts of 30%, 20%, and 10% in sequence. If the list price of an item is $1,000, after all discounts. is the final price