Case Studying-CH1 & CH2
1. Ranger Supply Company case
(1) They should consider the exchange rates, foreign interest rates, labor costs,
inflation, taxes, policies towards foreign investment, future political trends,
trends in investment, economic growth,
Exercise 10.18 page 337
To calculate a bid price, we know that
Initial xed assets investment = $ 870,000 Project life = 5 years
Fixed asset ending market value = $ 70,000 Fixed costs = $ 325,000
Variable costs = $ 10.30 per unit Number of units = 120,000
Data: House price 2010: $283,400; 2000: $200,300
Annual increase in selling price?
FV=PV x(1 + r)t
283,400=200,300x (1 + r)10
r= (FV/PV)1/ 1
r=(283,400/200.300)1/10 1 = 3.53%
The annual increase in selling price is 3.53%.
Data: A dollar m
Today, you are purchasing a 20-year, 6 percent annuity at a cost of $85,000. The
annuity will pay annual payments. What is the amount of each payment?
8% w @128 x: C
C" 79V : 85000 :g44 /6 5
MIX - a
1-(n/U 1(1+0/'%)l You have just
B. Blue Shield
Hang-mem- F. Flexible spending account
' emen .
K. Managed care
L. Master contract
A insurance is a generic term for a medical expense plan that