5. Your friend Tom Jones would like to borrow $450 today and promises to pay...
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5. Your friend Tom Jones would like to borrow $450 today and promises to pay you back $10,500 in 25 years? What would be the key considerations in answering this question? Would your answer depend on if this arrangement was made with the Government of Canada. Write a brief paragraph explaining your answer.
ii. Your friend Tom Jones just got a new job and is presented with his first important project. He has been asked to determine the appropriate selling price for the new fidget spinners the company will be selling. The tax rate is 39%, the company expects to sell 21,000 fidget spinners, interest expense will be 21,000, fixed costs 117,000, variable costs are $15.89 per fidget spinner, depreciation will be 108,500 and operating cashflow is $157,963. What should the selling price be of the fidget spinners be?
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