An automobile tier II supplier has been offered a contract to supply a gearbox to a car company. The initial price of the gearbox is $389, and the car company is ready to give a contract to the supplier to supply 500,000 gearboxes in the first year, increasing by 2% every year, if the supplier is ready to bring down the price of the gearbox every year by $7.50 over the 12-year life of the contract.
1. How much is the contract worth to the supplier at 6% interest?
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Ответ:
:
The contract is worth $1,622,970,237.98
Explanation:
Given
Number of Years = 12
Initial Price = $389
Initial Units = 500,000
Unit Increment = 2%
Price Decrement = $7.5
At Year 0:
$389 * 500,000 = $194,500,000
The Initial price would continue to decrease by $7.5
And the Initial units would continue to increase by 2%.
So,
At Year 1:
($389 - $7.5) * (500,000 * 2% + 500,000)
= $381.5 * 510,000 = $194,565,000
At Year 2:
($381.5 - $7.5) * (510,000 * 2% + 510,000)
= $374 * 520,200 = $194,554,800
At Year 3:
($374 - $7.5) * (520,200 * 2% + 520,200)
= $366.5 * 530,604 = $194,466,366
At Year 4:
$359 * $541,216 = $194,296,5736
At Year 5:
$351.5 * $552,040 = $194,042,2017
At Year 6:
$344 * $563,081 = $193,699,9368
At Year 7:
$336.5 * $574,343 = $193,266,3649
At Year 8:
$329 * $585,830 = $192,737,96810
At Year 9:
$321.5 * $597,546 = $192,111,13011
At Year 10:
$314 * $609,497 = $191,382,12412
At Year 11:
$306.5 * $621,687 = $190,547,113
Calculating present worth of contract (at 6%)
By adding the result of 0.06 * present value at each year.
Net Present Value = $1,622,970,237.98
Ответ:
"D" is the correct answer.
All of these.
Explanation:
NOTE: in this question, options part is missing, The option for the following question is :
b. Additions to business stock
c. firms' buy of equipment
d. All of the above
Gross Domestic Product is the overall financial or retail value of all completed production of goods and services in a specific period within a country.
formula to calculate GDP is as follow
GDP = C + I + G + NX
where C stands for Private consumption.
I stands for investment
G stands for government consummation
NX for net export (total export - total import)
GDP use to calculate countries total gross production during a particular year.