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?
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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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