Q9. Good and Proper Tea was founded in 2012 by Emilie Holmes. The business website states: We source our teas from around the world, from Kenya to India, Japan to China and many more places in between. It is important to us that we know exactly where each tea comes from and who is responsible for harvesting the leaves we buy. We will always share this information with our customers'. The business started when Emilie converted an old Citroën van (pictured right) into a mobile brew bar. Emilie wanted to expand the business. To achieve this she needed finance. She decided to raise finance using crowdfunding through the Kickstarter website. 372 individual backers each provided between £1 and £1000. Good and Proper Tea was launched. The first cup of tea was brewed and sold in Shoreditch, London, in 2012. The success of the mobile business led Emilie to plan to open a shop selling the same high-quality teas. Once again she decided to use crowdfunding as her source of finance. This time, using the Crowdcube website, she successfully raised £140,000. The shop was opened in 2016 and is very successful. As Good and Proper Tea imports its most important ingredient, it is affected by changes in the exchange rate. Recent changes in the value of the pound mean that its costs have increased. Evaluate whether crowdfunding is an effective source of finance for Good and Proper Tea. You should use the information provided as well as your knowledge of business. (Total for question = 12 marks)​

You need to deposit an additional $59,453.30 today in order to meet your goal of accumulating $100,000 in 10 years.

Savings refer to the portion of income that is not spent on consumption and is instead set aside for future use or investment. This can include money that is deposited into a savings account, invested in stocks or other financial instruments, or used to pay off debt.

Savings can serve a variety of purposes, such as building an emergency fund, saving for a down payment on a house, planning for retirement, or investing in a child's education. Saving money can also help individuals and households to achieve financial stability and security, by providing a cushion against unexpected expenses and income shocks. There are different strategies and approaches to saving money, including setting a budget, reducing expenses, increasing income, and automating savings through direct deposit or automatic transfers. Some financial experts recommend saving a certain percentage of income each month, such as 10% or 20%, while others suggest setting specific savings goals and timelines.

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A portfolio with 50% invested in stock A and the remaining amount in stock B is predicted to earn a return of 6.25%.

What kinds of returns are there?

There are three different interest return types. Bonds, GICs, and savings accounts all pay interest and dividends. Capital gains. Some equities pay dividends, which give investors a share. When you sell an investment, such as a stock or bond, you are an investor.

First, we need to calculate the mean returns and deviations for each stock:

Mean return of A = (5% - 10% - 6% + 5% + 14% + 15%) / 6 = 3.0%

Deviation of returns for A = [ (5% - 3.0%)² + (-10% - 3.0%)² + (-6% - 3.0%)² + (5% - 3.0%)² + (14% - 3.0%)² + (15% - 3.0%)² ] / 6 = 9.77%

Mean return of B = (15% - 14% - 3% + 28% + 8% + 8%) / 6 = 9.5%

Deviation of returns for B = [ (15% - 9.5%)² + (-14% - 9.5%)² + (-3% - 9.5%)² + (28% - 9.5%)² + (8% - 9.5%)² + (8% - 9.5%)² ] / 6 = 15.49%

Next, we calculate the covariance of returns for stock A and B:

Covariance of A and B = [ (5% - 3.0%) * (15% - 9.5%) + (-10% - 3.0%) * (-14% - 9.5%) + (-6% - 3.0%) * (-3% - 9.5%) + (5% - 3.0%) * (28% - 9.5%) + (14% - 3.0%) * (8% - 9.5%) + (15% - 3.0%) * (8% - 9.5%) ] / 6 = -27.17%

Finally, we can calculate the correlation of returns:

Correlation of A and B = Covariance of A and B / (Deviation of A * Deviation of B) = -27.17% / (9.77% * 15.49%) = -0.185

Therefore, the correlation of returns between stock A and B is -0.185.

Part 4: To find the expected return of a portfolio with 50% invested in stock A and the remainder in stock B, we need to calculate the weighted average of their expected returns.

Expected return of portfolio = 0.5 * Expected return of A + 0.5 * Expected return of B

Expected return of portfolio = 0.5 * 3.0% + 0.5 * 9.5% = 6.25%

Therefore, the expected return of a portfolio with 50% invested in stock A and the remainder in stock B is 6.25%.

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a. The amount builder will be expected to give the bank to buy down the payments as indicated is  $4,565.62. It is not recommended that the property be purchased if it was selling for $5,000 more than similar properties that do not have the buydown available.

a. The present value of the normal mortgage payments is $80,000. The monthly payments would be $726.96, therefore the annual payments would be: 12 * $726.96 = $8,723.52. To calculate the present value of the normal mortgage payments, you can use the formula:

PMT = r × PV / (1 - (1 + r)^n)

Where PMT = periodic payment, r = interest rate per period, n = number of periods, and PV = present value.

Rearranging this formula to solve for PV, we get:

PV = PMT × (1 - (1 + r)^n) / r

Using r = 10% / 12 and n = 25 x 12, we can calculate PV:

PV = $726.96 × (1 - (1 + 10% / 12)^25 x 12) / (10% / 12)

PV = $80,000

Now, let’s see how the builder's mortgage changes the payments. The builder is offering to reduce payments by 50% for the first year and 25% for the second year, which means the payment in the first year would be:

$726.96 × 50% = $363.48

The payment in the second year would be:

$726.96 × 75% = $545.22

The builder must compensate the bank for the reduction in payments. The present value of the builder’s mortgage payments can be calculated in the same way as before, but using the builder’s reduced payments for the first two years and normal payments for the remaining years.

Using the formula above, we can calculate the present value of the builder’s mortgage payments:

PMT = r × PV / (1 - (1 + r)^n)

PMT for the first year = $363.48 and for the second year = $545.22. PV of the reduced payments for two years:

PV = $363.48 × (1 - (1 + 10% / 12)^12) / (10% / 12) + $545.22 × (1 - (1 + 10% / 12)^12) / (10% / 12) = $7,218.36

PV of the normal payments for remaining years:

PV = $726.96 × (1 - (1 + 10% / 12)-23 x 12) / (10% / 12) = $68,216.02

Therefore, the total present value of the builder’s mortgage payments is:$7,218.36 + $68,216.02 = $75,434.38T

he amount that the builder must give the bank to buy down the payments is the difference between the present value of the normal mortgage payments and the present value of the builder’s mortgage payments:

$80,000 - $75,434.38 = $4,565.62

Therefore, the builder would have to give the bank $4,565.62 to buy down the payments as indicated.

b. The extra cost of the property compared to similar properties without the buydown is $5,000. The buyer would save money in the first two years of the mortgage with the reduced payments, but would have to make the normal payments for the remaining years.The savings in the first two years would be:

$726.96 - $363.48 = $363.48 for the first year and $726.96 - $545.22 = $181.74 for the second year

Therefore, the total savings in the first two years would be:

$363.48 + $181.74 = $545.22

The cost of the buydown is $4,565.62, but the savings in the first two years is only $545.22. Therefore, it would take more than 8 years to break even on the buydown. This may not be a wise investment for the buyer, depending on their individual circumstances.

Therefore, it may not be recommended to purchase the property if it was selling for $5,000 more than similar properties that do not have the buydown available.

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Starbucks has locations inside of some supermarkets, including Safeway and Kroger. An illustration of piggyback franchising is this.

Piggyback franchising, or "Combination franchising," as it is also known, is essentially a merger of two franchises that operate under the same roof. Independent business startups can be expensive, and most entrepreneurs have very limited access to cash. Currently, the entrepreneurs' position as a potential borrower is at its lowest. By collaborating with a franchising company, the franchisee may increase her/his chances of getting financial support. If the franchising company believes the candidate is a good fit with a good chance of success, it frequently offers financial assistance.

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The advantages of rack storage is that it allows for greater vertical space usage and it reduces the need for handling equipment. Three types of rack storage are pallet racking, cantilever racking, and push-back racking.

The two advantages of rack storage are as follows:

There are three types of rack storage and describe why each is effective are as follows:

Note: The question is incomplete. The complete question probably is: The largest standardized material-handling unit is generally the pallet. Provide 2 advantages of rack storage. Provide 3 examples of rack storage and describe why each is effective (one solution must incorporation inventory rotation)

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The road bike has a better contribution margin ratio of 65 %, whereas the mountain bike has a contribution margin ratio of 58 %.

a. Compute contribution margin (in dollars) for each product.

b. Compute contribution margin ratio for each product.

Thus, the road bikes have a better contribution margin ratio.

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The journal entries on Bank’s books (lessee) On January 1, 2021 Debit Equipment 3,500,000 and Credit Lease Liability 3,500,000. On December 31, 2021 Debit Lease Liability 918,446, Credit Interest Expense 60,000 and  Credit Cash 978,446

Journal entries are the records of a company's financial transactions in chronological order. These entries are used to record and track all financial activities that affect a company's accounts, such as purchases, sales, and payments. Journal entries are typically used in double-entry bookkeeping systems, which require that each transaction be recorded in at least two accounts.

A typical journal entry includes the date of the transaction, a description of the transaction, and the amounts debited and credited to the relevant accounts. Debits and credits must be equal in every journal entry, to ensure that the accounting equation (Assets = Liabilities + Equity) remains in balance.

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A scaled number is a number that has been adjusted or modified in some way to fit a specific scale or measurement. In the options provided, the government budget deficit as a percentage of GDP is a scaled number.

This is because it takes the budget deficit and adjusts it to fit the scale of the GDP, making it easier to compare and understand in relation to the overall economy.

The other options, the country's national debt, the sum of all incomes earned in the economy, and total tax revenues in the economy, are all absolute numbers and not scaled.

Therefore, the correct answer is government budget deficit as a percentage of GDP.

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A project is considered feasible for implementation if it satisfies the following conditions:

1) it is cost-effective based on the cost benefit analysis

2) the required technology is available to implement it

3) it can be adapted to work in an organization’s environment

4) it has been implemented in another organization

First, it must be cost-effective based on a thorough cost-benefit analysis. Second, the required technology must be available and accessible to implement the project successfully. Third, it must be adaptable to work within the organization's unique environment.

Finally, it would be helpful if the project has been implemented successfully in another organization, although this is not a strict requirement. Evaluating feasibility based on these criteria ensures that the project can be implemented efficiently and effectively, with a high probability of success.

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Nellie's proposals are aimed at improving the company's working capital management by reducing costs and increasing cash inflows.

By taking advantage of the 4% discount from the manufacturer, the company can reduce its cost of goods sold and increase its profit margin. Additionally, by offering a 2.5% discount to customers who pay within 15 days, the company can increase its cash inflows and reduce its collection costs.

To determine the impact of these proposals, we can use the following formulas:

- Cost of goods sold (COGS) = (Selling price - Mark-up) x Quantity sold
- Profit margin = (Selling price - COGS) / Selling price
- Cash inflows = Selling price x Quantity sold x Percentage of customers who pay within 15 days
- Collection costs = Collection cost per unit x Quantity sold

Using these formulas, we can calculate the impact of Nellie's proposals on the company's working capital management:

- COGS without discount = (R7,500 - 50%) x 400 = R1,500,000
- COGS with discount = (R7,500 - 50% - 4%) x 400 = R1,440,000
- Profit margin without discount = (R7,500 - R1,500,000) / R7,500 = 80%
- Profit margin with discount = (R7,500 - R1,440,000) / R7,500 = 80.8%
- Cash inflows without discount = R7,500 x 400 x 0% = R0
- Cash inflows with discount = R7,500 x 400 x 40% = R1,200,000
- Collection costs without discount = R50 x 400 = R20,000
- Collection costs with discount = R50 x 400 x 60% = R12,000

As we can see, Nellie's proposals can reduce the company's COGS by R60,000, increase its profit margin by 0.8%, increase its cash inflows by R1,200,000, and reduce its collection costs by R8,000.

These improvements can help the company to better manage its working capital and support its plans for expansion.

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During June, the Grass is Greener Company mows 100 lawns a week. The company was paid in advance during May by those customers. The company uses the accrual basis of accounting. Events happening in different period doesn't appear in the cash flow.

These events will affect the company's financial statements by the following way:-

1. Income Statement: The income statement for June will show 100 lawns mowed and the revenue recognized for those 100 lawns.

2. Balance Sheet: The company’s balance sheet will report a liability account called Unearned Revenue. The company received the money in May but hasn't done the work, so it has not earned that money. The balance sheet for June will reduce the Unearned Revenue account by the amount of revenue earned.

3. Cash Flows: The cash flow statement will not be affected. The company received the cash in May and earned the revenue in June. The two events happened in different periods. Therefore, it doesn't appear in the cash flow statement.

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Answer: Balance Sheet

Based on the search results, it is clear that BP has a Code of Conduct that aims to positively impact stakeholder relationships.

The question asks to select two areas where Tony Hayward failed in relation to the Code of Conduct and stakeholder relationships, and to provide advice on how to improve damaged relationships.

Without access to more information about Tony Hayward and his time at BP, it is difficult to say specifically which areas he may have failed in with regard to the Code of Conduct and stakeholder relationships. However, possible areas where he may have faced challenges could include:

As an advisor to Tony Hayward, my advice would be to focus on transparency, accountability, and rebuilding trust with stakeholders. This could involve taking steps such as:

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Governments can use tax revenues to pay for a wide range of goods and services that benefit society as a whole. Among the options listed, the government could use tax revenues to pay for:

A. Defense: This includes funding for the military and other national security initiatives to protect the country from external threats.B. Education: Governments can fund public education systems to ensure that all citizens have access to quality education, which is essential for a thriving economy and a well-informed populace.C. Environment: Governments can use tax revenues to fund initiatives to protect the environment, such as investing in renewable energy, regulating pollution, and promoting sustainable practices.D. National, state, and local parks: Governments can use tax revenues to fund the creation and maintenance of parks and other recreational facilities that provide opportunities for outdoor recreation and promote physical activity and mental health.

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The correct answer is Maintain an adequate supply of 3-M System materials within the Work Center. The Maintenance Material Management (3-M) System is what this is known as.

The US Navy uses the system, a thorough maintenance management programme, to guarantee the material readiness of ships and submarines. In addition to maintaining accurate records of equipment deficiencies, maintenance actions, and material usage, the 3-M System contains methods for planning, scheduling, and tracking maintenance tasks.

The Current Ship's Maintenance Project (CSMP), Planned Maintenance System (PMS), SKED's revision editor, and the OMMS database are among the tools and papers used in this process. The system's goal is to guarantee that equipment is maintained in a way that is safe, dependable, and economical and that maintenance tasks are correctly planned, carried out, and recorded.

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Jacquelyn made her investment which is a 9.5% compounded annual rate of return. The investment is now worth $97,920, so the total amount of time elapsed since the initial investment is 30.77 years.

The question is asking how long ago Jacquelyn made her investment. The investment has earned an average annual rate of return of 9.5%, compounded annually. We can use the formula for the future value of an investment to solve this problem:

Where FV is the future value, PV is the present value, r is the annual interest rate, and t is the number of years.

Substituting the given values, we get:

Dividing both sides by $6,000, we get:

Taking the natural logarithm of both sides, we get:

Solving for t, we get:

Therefore, Jacquelyn made her investment 30.77 years ago.

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As a finance lease, the lease liability for Lease A is categorised as a liability and divided into current and non-current components based on when the payments are due.

In its balance sheet, how should Manning disclose its lease liabilities? Liabilities for finance and operating leases must be shown separately from other obligations on the balance sheet.

The present value of any outstanding future lease payments is taken into account in the basic calculation for determining the lease liabilities.

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A proposal should be prepared for the following reason: To make an offer to solve problems, provide services, or sell products.

Proposals are commonly used in the business world to pitch ideas, products, or services. They can be either solicited or unsolicited. Solicited proposals are when a company or organization specifically asks for a proposal, while unsolicited proposals are when a company or organization decides to pitch an idea on their own.Proposals are typically used to persuade someone to take a particular action. For example, a company may propose a new wellness program to their employees to persuade them to take action to improve their health. Proposals should be concise, clear, and easy to read.

They should include a brief summary of the proposal, the benefits of the proposal, and a call to action for the reader to take action. Proposals can be used to make an offer to solve problems, provide services, or sell products. For example, a company may propose a new software system to help automate their workflow. The proposal would include the benefits of the system, the costs of implementing the system, and a call to action for the reader to take action. Proposals can also be used to deliver bad news to employees. For example, a company may propose a layoff to employees. The proposal would include the reasons for the layoff, the benefits of the layoff, and a call to action for the employees to take action.

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The value of checkable deposits, after calculations, will increase to $2,500.

Suppose the banking system does not hold excess reserves and the reserve ratio is 20%. If Sam deposits $500 of cash into his checking account, then the total value of checkable deposits will increase to $2,500.

We can find the value of checkable deposits using the simple formula: Checkable Deposits = 1 / Reserve Ratio × Deposits.

Suppose that the reserve ratio is 20%, which means that 20% of deposits are held as required reserves. Then, we can calculate the amount of deposits that will create $500 in required reserves by dividing 500 by 0.2:

Required Reserves = 20% × Deposits

500 = 0.2 × Deposits

Deposits = $2,500

Thus, the value of checkable deposits will increase to $2,500. The deposit of $500 by Sam will create $100 in required reserves, which means that $400 of the deposit will be excess reserves.

The bank can use these excess reserves to make loans or purchase securities. This creates more money and expands the money supply.

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1. The immediate steps to tackle the conflict would include listening to both perspectives, identifying the core problem, and establish ground rules for communication. 2. Strategies to prevent such conflicts would include creating communication policy, encourage transparency, and provide appropriate resources.

1. As a manager or owner, I would take the following immediate steps to tackle the conflict:

a. I would listen patiently to both sides of the argument and try to understand the issues from their perspectives.

b. I would identify the core problem and try to resolve it by bringing both parties together and making them work collaboratively towards finding a solution.

c. I would establish ground rules for communication and encourage them to communicate openly, respectfully, and professionally with each other.

2. To prevent such conflicts in the future, I would adopt the following strategies:

a. Establish a clear and concise communication policy that outlines the expectations, responsibilities, and roles of the food buyer and chef.

b. Encourage transparency and accountability in the procurement and food preparation process by setting up regular meetings, inspections, and audits.

c. Provide the food buyer and chef with the necessary resources, training, and tools to carry out their duties effectively and efficiently.

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XYZ Corporation's return on capital is 55.56%. To calculate this, first take the net operating profit after taxes (NOPAT) of $100,000 and divide it by the total capitalization (TC) of $180,000. This gives us the ratio of 0.5556. Finally, multiply this by 100 to get the percentage return on capital of 55.56%.

The after-tax net present value (ATNPV) is a financial metric that calculates the present value of the expected after-tax cash inflows from an investment minus the present value of the expected after-tax cash outflows. It is similar to the NPV, but takes into account the tax implications of the investment. To calculate the after-tax cash flows, we need to deduct the taxes from the cash inflows. The tax rate depends on the type of investment, the jurisdiction, and the tax laws. Once we have calculated the after-tax cash flows, we can use the same formula as the NPV to calculate the ATNPV. If the ATNPV is positive, the investment is expected to generate a positive return after taxes, and if the ATNPV is negative, the investment is expected to result in a loss after taxes.

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The price elasticity of demand is .83.

In Economics, the Midpoint formula (or the Midpoint elasticity method) is a technique for measuring elasticity that considers a change in two different quantities. We'll use the midpoint formula to calculate price elasticity in this scenario. We have to substitute the values into the formula to calculate the price elasticity of demand.

Where, Price elasticity of demand = {(Q1 - Q2) / [(Q1 + Q2) / 2]} / {(P1 - P2) / [(P1 + P2) / 2]}

Initial Quantity Demanded = Q1 = 10,000 pounds.

New Quantity Demanded = Q2 = 14,000 pounds.

Initial Price = P1 = $3 per pound.

New Price = P2 = $2 per pound.

By using the formula mentioned above, we get,

{(14,000 - 10,000) / [(14,000 + 10,000) / 2]} / {(3 - 2) / [(3 + 2) / 2]}

= 4,000 / 12,000 ÷ 1 / 2.5= 0.83 (Approx.)

Therefore, the price elasticity of demand is 0.83.

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The view of quality that states that the overall quality of a gadget is the total sum of the quality of its parts is called the component view.

The component view of quality emphasizes that the overall quality of a product is the sum of the quality of its individual parts, rather than the product as a whole. A component view of quality implies that the key to high-quality products is high-quality components.

The manufacturing process of every component of an iPhone is fine-tuned and perfected. This fact supports the belief that the overall quality of a gadget is the total sum of the quality of its parts. Thus, this view of quality is known as the component view of quality.

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It is important to record documents conveying a real property interest because recording satisfies the doctrine of constructive notice.

A "land interest" is any ownership or possessory right over real property, including ownership in fee simple, easements, a lease, and any subsurface or mineral rights. Real property includes all land and any tangible personal property that is physically affixed to it, as well as any portion of land that has undergone lawful human intervention. Ponds, structures, structures with reservoirs, canals, roadways, and equipment are some examples of real property.

Absolute interest refers to anybody who has complete ownership of any item or piece of property. It implies that whoever has a vested interest will have the complete legal right to own and enjoy the benefits of his or her property or asset.

According to the notion of constructive notice, all parties associated with a business are aware of the company's bylaws. By assuming that everyone entering into the contract should have realized that the company's information is public knowledge, it lessens responsibility.

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It will take approximately 14 years for an initial investment of $1,000 in an account that pays 2% every 6 months to grow to $2,000.

To calculate this, we can use the formula for compound interest:

[tex]A = P(1 + r/n)^{(nt)[/tex]

where A is the ending amount, P is the principal, r is the annual interest rate, n is the number of times the interest is compounded per year, and t is the time in years.

In this case, we have an annual interest rate of 4% (2% every 6 months), compounded semi-annually (n = 2). We want to find the time it takes to double the initial investment, so we set A/P = 2 and solve for t:

[tex]1(1 + 0.04/2)^{(2t)[/tex]

[tex]2 = (1.02)^{(2t)[/tex]

log(2) = 2t log(1.02)

t = log(2)/(2 log(1.02))

Using a calculator, we get t ≈ 13.86 years. Therefore, it will take approximately 14 years.

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One of the following is true of purchasing: it can have a significant impact on total supply chain costs. The role of purchasing in supply chain management is crucial because it has a significant impact on total supply chain costs.

The supply chain refers to the entire process of producing and delivering goods to the consumer. The purchasing function is the one in charge of acquiring the goods and services necessary for the supply chain to function. When purchasing functions efficiently, the supply chain becomes cost-effective as well. When purchasing is done properly, the quality of the end product also improves.

Therefore, it can be concluded that purchasing is critical to the success of the supply chain. Hence, it can have a significant impact on total supply chain costs. In conclusion, the option "it can have a significant impact on total supply chain costs" is true of purchasing.

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a. If the fund can borrow short-term funds from its commercial bank at 8 percent, and if each of the suppliers are viewed separately none of the supplier's cash discounts should be foregone. b. It the firm could stretch by 10 days its accounts payable from supplier P, the cash discount should be foregone.

a. To answer this question, we need to calculate the cost of trade credit for each supplier. If we forego cash discounts, we can borrow the amount for 40 days without any interest. The cost of trade credit will be the annual percentage rate (APR) of the cost of foregoing the cash discount.

Supplier P offers a cash discount of 1% for payment within 10 days. The cost of foregoing the discount is:

[(1 - 0.01) / 0.99] × [365 / (40 - 10)] = 36.5%.

Since the cost of foregoing the discount is greater than the 8% annual interest rate, we should take the cash discount.

Supplier Q offers a cash discount of 2% for payment within 10 days. The cost of foregoing the discount is:

[(1 - 0.02) / 0.98] × [365 / (90 - 10)] = 21.7%.

Since the cost of foregoing the discount is greater than the 8% annual interest rate, we should take the cash discount.

Supplier R offers a cash discount of 1% for payment within 20 days. The cost of foregoing the discount is:

[(1 - 0.01) / 0.99] × [365 / (70 - 20)] = 18.6%.

Since the cost of foregoing the discount is greater than the 8% annual interest rate, we should take the cash discount.

Supplier S offers a cash discount of 3% for payment within 15 days. The cost of foregoing the discount is:

[(1 - 0.03) / 0.97] × [365 / (75 - 15)] = 43.3%. Since the cost of foregoing the discount is greater than the 8% annual interest rate, we should take the cash discount.

b. If the fund can stretch by 10 days its accounts payable from supplier P, then the net payment period will be 50 days (40 + 10). The cost of trade credit will be:

[(1 - 0.01) / 0.99] × [365 / (50)] = 7.65%.

Since the cost of foregoing the discount is less than the 8% annual interest rate, we should forego the cash discount. Therefore, the cash discount should be foregone if the firm can stretch by 10 days its accounts payable from supplier P.

Note: The question is incomplete. The complete question probably is: Gopher Manufacturing has four possible suppliers, all of which offer different credit terms. Except for the differences in credit terms, their products and services are virtually identical. The credit terms offered by these suppliers are shown below:

Supplier        Trade Credit Term

P                    1/10, Net 40

Q                    2/10, Net 90

R                    1/20, Net 70

S                    3/15, Net 75

a. If the fund can borrow short-term funds from its commercial bank at 8 percent, and if each of the suppliers are viewed separately, which, if any, of the supplier's cash discounts should be foregone? Why? b. Now assume that the firm could stretch by 10 days its accounts payable from supplier P. What impact, if any, would this change have on your answer in part a relative to this supplier?

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Along the supply curve, the amount supplied rises as the price of lighting rises. The supply itself does not alter, though. Hence, quantity given rises is the right response.supplied increases. Supply decreases

The amount of an item or service that producers are willing and able to provide for sale in a certain market at a given price is referred to as supply in economics. According to the rule of supply, ceteris paribus, as the price of a commodity or service rises, so does the amount supplied (all other things being equal). This is because manufacturers are encouraged to expand output when prices are higher since they may make larger profits. In contrast, when an item or service's cost drops, so does the amount offered since it becomes less lucrative for manufacturers to provide it. Graphically, supply is shown as an upward-sloping supply curve with price on the vertical axis and amount delivered

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I will explain the necessary steps you need to follow to solve this problem. An investor has two bonds in his portfolio that have a face value of $1,000 and pay an 11% annual coupon.

Bond l matures in 15 years, while bond S matures in 1 year.

The value of bond l at the going interest rate is 7%, 9%, and 12%.

We are to assume that only one more interest payment is to be made on bond S at its maturity and that 15 more payments are to be made on bond l.

To solve the question, you will need to calculate the present value of each bond at different interest rates. This can be achieved using the present value formula for bonds.

Present value formula for bonds the formula for calculating the present value of a bond is as follows:

P = C/r [1 - (1/(1 + r)t)] + F/(1 + r)

there :

P = Present value = Coupon payments = Interest rates = Time remaining = Face value bond l matures in 15 years.

The number of payments remaining will be 15.

Therefore, the value of bond l at different interest rates will be:

P7 = C/r [1 - (1/(1 + r)t)] + F/(1 + r)t

P9 = C/r [1 - (1/(1 + r)t)] + F/(1 + r)t

P12 = C/r [1 - (1/(1 + r)t)] + F/(1 + r)t.

Bond S, on the other hand, has only one more interest payment to be made at maturity.

Therefore, the present value will be:-

P7 = C/r + F/(1 + r)

P9 = C/r + F/(1 + r)

P12 = C/r + F/(1 + r)

Where: C = $110r = Interest rates = Time remaining = Face value = $1,000.

After finding the present value of each bond, round the answer to the nearest cent.

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The correct statement regarding the costs of Process X and Process Y is that the crossover point is approximately 6667 units. This is the point at which the total cost of both processes is the same.

The formula for total cost is TC = FC + VC(Q), where TC is total cost, FC is fixed cost, VC is variable cost, and Q is quantity. For Process X, the total cost is TC = $10,000 + $2.40(Q) and for Process Y, the total cost is TC = $9,000 + $2.25(Q).

Setting these two equations equal to each other and solving for Q gives us the crossover point: $10,000 + $2.40(Q) = $9,000 + $2.25(Q) --> $0.15(Q) = $1,000 --> Q = 6667 units.

The statement that is NOT true regarding the differences between goods and services is that tangible goods are generally produced and consumed simultaneously; services are not.

In fact, it is the opposite: services are generally produced and consumed simultaneously, while tangible goods are not. For example, a haircut is a service that is produced and consumed at the same time, while a tangible good like a car is produced before it is consumed.

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