Question
In: Finance
QUESTION THREE [20] 3.1 Assume that a firm is offered 2/10 net 30, indicating that if...
QUESTION THREE [20]
3.1 Assume that a firm is offered 2/10 net 30, indicating that if the account is settled in 10 days, the firm may keep a discount of 2%. If the discount is not taken, then the full amount is payable in 30 days.
Required: 3.1.1 Calculate the cost of foregoing the discount. (12)
3.1.2 Differentiate between the various aims of appraising projects.
Solutions
jeff jeffy answered 1 year agoRelated Solutions
QUESTION THREE: 3.1 Assume that a firm is offered 2/10 net 30, indicating that if the...
QUESTION THREE:
3.1 Assume that a firm is offered 2/10 net 30, indicating that
if the account is settled in 10 days, the firm may keep a discount
of 2%. If the discount is not taken, then the full amount is
payable in 30 days.
Required: Calculate the cost of foregoing the discount.
3.2 Differentiate between the various aims of appraising
projects
when offered terms on 2/10, net 30, Young Brand has always taken the discount, does this...
when offered terms on 2/10, net 30, Young Brand has always taken
the discount, does this makes financial sense?
Question 1 For the dataset: 20, 20, 10, 10, 40, 50, 20, 30, 10, 20, 50,...
Question 1
For the dataset: 20, 20, 10, 10, 40, 50, 20, 30, 10, 20, 50, 60,
20, 30, 50, 20, 30, 40, 30, 30, 30, 50, 40 calculate the max, min,
mode, median and mean.(20%)
Draw a boxplot with inner and outer fence
For the data in part (i), if the value 60 was replaced by 2000,
what would you call this value in the dataset? What could be the
explanation for such a value? How can you through...
QUESTION THREE [20] 3.1 Discuss, with the aid of examples, how income elasticity of demand and...
QUESTION THREE [20]
3.1 Discuss, with the aid of examples, how income elasticity of
demand and cross-price elasticity of demand can be used to define
goods and services. (12)
3.2 Supply and demand for normal goods and services tends to be
more elastic in the short-run than the long-run. Provide a
motivation for this economic phenomenon
QUESTION THREE [20] 3.1 Explain the rationale behind the internal rate of return. (IRR) (3) 3.2...
QUESTION THREE [20]
3.1 Explain the rationale behind the internal rate of return.
(IRR) (3)
3.2 Super Max Investments have just made an investment of R550
000 in a new Tata Telcoline delivery vehicle. This vehicle will be
used for deliveries and generate revenues from such activities.
Further details:
Expected useful life 5 years (straight line depreciation)
Salvage value 50 000
Cost of Capital 10% after tax
Tax rate 30%
Year Cash flows
1 -220 000...
QUESTION THREE [15] 3.1 Questions 3.1 to 3.2 is based on the excerpt below. Shine is...
QUESTION THREE [15]
3.1 Questions 3.1 to 3.2 is based on the excerpt below. Shine is
one of many firms in the market for toothpaste which is in
short-run equilibrium. It engages in advertising to create the
perception of a unique product. Discuss the long-run aggregate
supply curve.
3.1.1 Draw a diagram illustrating Shine’s demand curve, marginal
revenue curve, average total cost curve and marginal cost curve,
clearly labeling the company’s profit maximizing output, price and
equilibrium position. Include in...
A large manufacturing firm has been selling on a 3/10, net 30 basis. The firm changes...
A large manufacturing firm has been selling on a 3/10,
net 30 basis. The firm changes its credit terms to 3.5/9, net 25.
What change might be expected on the
Decreased receivables and increased bank
loans.
Increased receivables and increased bank
loans.
Decreased payables and increased bank
loans.
Increased payables and increased bank
loans.
Problem 17-11 Terms of Sale [LO 2] A firm offers terms of 1/10, net 30. Requirement...
Problem 17-11 Terms of Sale [LO 2]
A firm offers terms of 1/10, net 30.
Requirement 1:
What effective annual interest rate does the firm earn when a
customer does not take the discount? (Do not round
intermediate calculations. Enter your answer as a percentage
rounded to 2 decimal places (e.g., 32.16).)
Effective annual interest rate
%
Requirement 2:
What effective annual interest rate does the firm earn if the
discount is changed to 2 percent? (Do not round
intermediate...
Problem 17-11 Terms of Sale [LO 2] A firm offers terms of 1/10, net 30. Requirement...
Problem 17-11 Terms of Sale [LO 2]
A firm offers terms of 1/10, net 30.
Requirement 1:
What effective annual interest rate does the firm earn when a
customer does not take the discount? (Do not round
intermediate calculations. Enter your answer as a percentage
rounded to 2 decimal places (e.g., 32.16).)
Effective annual interest rate
%
Requirement 2:
What effective annual interest rate does the firm earn if the
discount is changed to 2 percent? (Do not round
intermediate...
Classes (Percentage) No of Students 0 < 10 10 10 < 20 20 20 < 30...
Classes (Percentage)
No of Students
0 < 10
10
10 < 20
20
20 < 30
25
30 < 40
15
40 < 50
20
50 < 60
35
60 < 70
45
70 < 80
10
80 < 90
15
90 < 100
5
2.1 Determine the:
2.1.1 Mean number of marks (1 mark)
2.1.2 Median number of marks
2.1.3 Modal number of marks
2.2 Calculate the standard deviation
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