Why gm are now buying their parts from outside suppliers
Discuss the below:
Q: Why large companies such as Honda and GM are now buying their parts from outside suppliers? Why in the past they integrated backward into industries, which provided them with components-parts? Explain.
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a. What is the current value of the future payments b. What is the current value, if they are received at the beginning of each year?
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Why large companies such as Honda and GM are now buying their parts from outside suppliers?
You wish to leave an endowment for your heirs that goes into effect 50 years from today.
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What is the present value of nine annual cash payments of $4,000, to be paid at the end of each year using an interest rate of 6%?
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