Unit contribution margin divided by the constrained resource per unit, which is used for computing the contribution margin per unit of constrained resource. The correct option is c.
The formula "Unit contribution margin divided by the constrained resource per unit" is used to calculate the contribution margin per unit of the constrained resource. The constrained resource is the resource that limits the production of a product or service, such as a machine, labor, or raw material.
By calculating the contribution margin per unit of the constrained resource, a business can determine which products or services generate the highest profit contribution for each unit of the constrained resource used. This information can be used to make decisions about how to allocate the constrained resource among different products or services, to maximize profitability.
The optimal number of units that should be manufactured would require additional information beyond the formula given. The degree of operating leverage is calculated by dividing the contribution margin by the operating income, and the formula given does not include any information about operating income. Sales mix refers to the relative proportion of different products or services sold and is not related to the formula provided.
The correct option is c.
Learn more about Contribution margin: https://brainly.com/question/24881206
#SPJ11
100 POINTS!!!!!!!Dan is opening a pizzeria. Match the cost to his type. 100 POINTS!!!!!!!!!!
Variable costs are:
Credit card fees
Dough
Pizza boxes
Fixed cost include:
Rent
Property Tax
Insurance
Employee wages
Tanner Corporation produced 3,355 units, consisting of three separate products, in a joint process for the year. The market for these products was so unstable that it was not practical to estimate the selling price of the products. A cost of $457,000 was incurred in the joint process. Product X's production was 80% of product Y's while product Z's production was 125% of product Y's. What is the amount of the joint cost allocable to product X (rounded to the nearest whole dollar) assuming Tanner uses the physical quantities method of allocation
Tanner Corporation produced 3,355 units, consisting of three separate products, in a joint process for the year. Thus Rounded to the nearest whole dollar, the amount of joint cost allocable to product X would be $120,131.
Let's start by calculating the physical quantities for each product:
Product X: 80% of Product Y's production = 0.8 * Y
Product Y: 1 unit
Product Z: 125% of Product Y's production = 1.25 * Y
The total production is the sum of the three products:
Total production = 0.8 * Y + 1Y + 1.25 * Y = 3.05Y
To allocate the joint costs to each product, we need to determine the cost per unit of output.
Cost per unit = Total joint costs / Total production
Cost per unit = $457,000 / 3,355 units
Cost per unit = $136.07 per unit
Now we can allocate the joint costs to each product:
Product X: 0.8 * Y / 3.05Y * $457,000 = $120,131.15
Product Y: 1Y / 3.05Y * $457,000 = $149,590.16
Product Z: 1.25 * Y / 3.05Y * $457,000 = $187,278.69
Rounded to the nearest whole dollar, the amount of joint cost allocable to product X is $120,131.
To know more about Tanner Corporation
https://brainly.com/question/31412090
#SPJ4
A, agrees to deliver his old CTV for Rs. 30,000 to B, anelectronic dealer, in exchange fornew CTV and agrees to pay the difference in cash. Is it a validcontract of sale? What would beyour answer
Yes, this is a valid contract of sale. .
A valid contractThe given problem states that A agrees to deliver his old CTV for Rs. 30,000 to B, an electronic dealer, in exchange for a new CTV and agrees to pay the difference in cash. It is asked whether this is a valid contract of sale or not.
The given problem presents a valid contract of sale. In this case, the old CTV is the subject matter of the contract while the new CTV is the price of the contract.
The agreement reached between A and B is perfectly valid and fulfills all the requirements of a valid contract of sale.As a result, the answer to the given problem is that it is indeed a valid contract of sale.
Learn more about valid contract at
https://brainly.com/question/6491012
#SPJ11
Suppose company A stock is last time traded at 43. 26$, and our analysis shows that in one year from now,
its price would either increase or decrease by 35%. (i. E. D=0. 65, u=1. 35) Assume that risk-free rate is 1%
and the company pays no dividend in this time period.
1) What would be the payoff for a European Put Option written on Company A equity, with time to maturity
of 1 year, and strike price of 35$? Calculate the payoff for the up and down scenarios
The payoff for a European put option written on Company A equity with a strike price of $35 and time to maturity of 1 year is $0 for the up scenario and $6.94 for the down scenario.
Using the given values, we can calculate that the up and down scenarios for the stock price after one year would be
Up scenario $43.26 * 1.35 = $58.46
Down scenario $43.26 * 0.65 = $28.06
To calculate the payoff for a European Put Option with a strike price of $35 and time to maturity of 1 year, we need to compare the strike price to the stock price in each scenario.
Up scenario the option would not be exercised, as the stock price is above the strike price. The payoff would be $0.
Down scenario the option would be exercised, as the stock price is below the strike price. The payoff would be $35 - $28.06 = $6.94.
Therefore, the payoff for a European Put Option in this scenario would be $0 in the up scenario and $6.94 in the down scenario.
To know more about payoff:
https://brainly.com/question/31726986
#SPJ4
in economics, people are assumed to responses a prefer more to less.prefer more to less. b experience positive marginal utility from consumption.experience positive marginal utility from consumption. c act to increase utility.act to increase utility. d prefer less to more.
In economics, the basic assumption is that people respond to incentives by preferring more to less option A is correct. This means that individuals are motivated to consume more of a good or service if it brings them greater satisfaction or utility.
People also experience positive marginal utility from consumption, which means that the more they consume of a good or service, the greater the additional satisfaction or utility they derive from each additional unit. This is why people are often willing to pay more for additional units of a good or service.
To increase their utility, people act in ways that will maximize their satisfaction or happiness. This could involve buying more of a particular product, finding ways to reduce the cost of a product, or simply finding a more efficient way to consume the product. For example, if a person enjoys drinking coffee, they may try to find a cheaper brand or a way to make their own coffee at home to increase their overall utility.
In some cases, however, people may prefer less to more. This could happen if a good or service becomes too expensive or if there are negative consequences associated with consuming it. For instance, a person may choose to consume less junk food if they are concerned about their health, even if they derive pleasure from eating it.
Overall, the assumption that people prefer more to less, experience positive marginal utility from consumption, and act to increase their utility is central to understanding how individuals make economic decisions and how markets operate.option A is correct
For more such questions on service
https://brainly.com/question/24553900
#SPJ11
which manufacturing process would the be most appropriate to use if you were producing and selling custom design wedding cakes? which manufacturing process would the be most appropriate to use if you were producing and selling custom design wedding cakes? continuous flow production batch production make-to-stock line flow production assemble-to-order job shop production
The most appropriate manufacturing process for producing and selling custom design wedding cakes would likely be a job shop production process.
Job shop production is characterized by producing customized products in small quantities, often one-of-a-kind or unique items that require flexibility and customization to meet individual customer requirements.
Custom design wedding cakes are typically made to order and require personalized designs, decorations, and specifications based on the preferences and requests of the individual customers. Job shop production allows for the flexibility and versatility needed to accommodate these customizations and produce unique wedding cakes tailored to the specific needs and preferences of each customer.
Learn more about “ design wedding cakes “ visit here;
https://brainly.com/question/20889970
#SPJ4
Complete Question
Which manufacturing process would be the most appropriate to use if you were producing and selling custom design wedding cakes?
A) Continuous flow production
B) Batch production
C) Make-to-stock
D) Line flow production
E) Assemble-to-order
F) Job shop production
Mutual interdependence among firms in an oligopoly means that: firms never practice price leadership. firms never form a cartel. it is difficult to know how firms will react to decisions of rivals. no formal agreement is possible among firms.
Mutual interdependence among firms in an oligopoly means that firms are highly reliant on each other in terms of pricing, output, and marketing decisions. This means that the actions of one firm can have a significant impact on the decisions of its competitors. In an oligopoly market, firms are highly aware of their competitors' behavior and strategies, and they react accordingly to maintain their market position.
It is difficult to know how firms will react to decisions of rivals in an oligopoly market, as each firm has its own unique strategy and goals. Due to this interdependence, firms may choose to either compete aggressively or cooperate with their competitors, depending on the situation.
However, it is unlikely that firms will form a formal agreement or cartel, as this is typically illegal and subject to heavy penalties. Instead, firms may engage in tacit collusion, where they coordinate their pricing and output decisions without explicitly agreeing to do so.
In an oligopoly market, firms may also practice price leadership, where one firm sets the price and the others follow suit. This can occur if one firm is considered a leader in the market and its competitors choose to follow its pricing strategy.
Overall, mutual interdependence in an oligopoly market creates a complex and dynamic environment, where firms must constantly adapt to the actions of their competitors to remain competitive.
for more such questions on market
https://brainly.com/question/25369230
#SPJ11
What changes is the new CEO Martin planning to bring into Idle Time’s management practices?
In order to answer the question you need to add the choices so I can solve it properly.
Explanation:
3 Incorrect Caroline and Gustavo live together. Every Saturday, one of them goes shopping, alternatively. Their purchases are however not identical. At price CHF 5 per kilogram, the average price observed on the market, Caroline buys 500 grams of potatoes and Gustavo 1000 grams. At price CHF 4 per kilogram, Caroline buys 800 grams of potatoes and Gustavo 1200 grams. What is the price elasticity of demand for their average purchases of potatoes, when they cost CHF 4 per kilogram (in absolute value)? Mark 0. 0 out of 1. 0 Flag question Answer: 2 x The correct answer is: 1
Since the price elasticity of demand for potatoes is greater than 1, we can infer that consumer demand is elastic, meaning that a drop in price will result in a disproportionately large increase in the amount demanded.
The following formula elasticity can be used to determine the percentage change in potatoes quantity requested for each individual: In regards to Caroline:
Initial quantity requested (at CHF 5 per kilogram) equals 500 grams plus 800 grams, or 1300 grams. At CHF 4 per kilogram, the new quantity required is equal to 260 kg (500 grams at CHF 5 per kilogram plus 800 grams at CHF 4 per kilogram). Demand quantity change as a percentage: (260 - 1300)/1300 * 100% = -80.77%
Gustavo's benefit:
Initial quantity requested (at CHF 5 per kilogram) equals 1000 grams plus 1200 grams, or 2200 grams.
New quantity required (at CHF 4 per kilogram) equals 1000 grams at CHF 5 per kilogram plus 1200 grams at CHF 4 per kilogram for a total of 360 kg.
Demand quantity change as a percentage: (360 - 2200)/2200 * 100% = -83.64%
Learn more about elasticity, from :
brainly.com/question/28790459
#SPJ1
First National Bank is doing some scenario analysis. It believes that its source of funds (the Federal Reserve) will soon increase the cost of loans. In fact, the cost of making loans is expected to change from the current 2 percent interest to either 3 percent or 4 percent interest in the next year. There will be no change in its $2,000,000 income at the 2 percent interest level, but net income will fall to $1,000,000 if interest rates increase to 3 percent and decrease to $100,000 if the interest rates increase to 4 percent. Finally, National predicts a 10 percent probability of a decrease to 2 percent interest rate, a 50 percent probability of a 3 percent interest rate, and a 40 percent probability of an increase to 4 percent interest rate.
Required:
What is the expected financial impact of changing interest rates at First National Bank?
According to the financial projections, a change in interest rates at First National Bank is expected to result in a substantial decrease in income. The projected reduction amounts to $1,260,000, with income dropping from $2,000,000 to $740,000.
First National Bank is facing a scenario in which the cost of making loans is expected to change from the current 2 percent interest to either 3 percent or 4 percent interest in the next year. The bank predicts a 10 percent probability of a decrease to 2 percent interest rate, a 50 percent probability of a 3 percent interest rate, and a 40 percent probability of an increase to 4 percent interest rate. Given this information, we can calculate the expected financial impact of changing interest rates at First National Bank.
If the interest rate remains at 2 percent, the bank's income will be $2,000,000. If the interest rate increases to 3 percent, the bank's income will fall to $1,000,000. If the interest rate increases to 4 percent, the bank's income will decrease to $100,000. Using the probabilities provided, we can calculate the expected income for the bank as follows:
Expected income = (Probability of 2% interest rate x Income at 2% interest rate) + (Probability of 3% interest rate x Income at 3% interest rate) + (Probability of 4% interest rate x Income at 4% interest rate)
Expected income = (0.1 x $2,000,000) + (0.5 x $1,000,000) + (0.4 x $100,000)
Expected income = $200,000 + $500,000 + $40,000
Expected income = $740,000
Therefore, the expected financial impact of changing interest rates at First National Bank is a decrease in income from $2,000,000 to $740,000, or a decrease of $1,260,000. The bank should take steps to prepare for this potential decrease in income, such as cutting costs or finding new sources of revenue.
To learn more about financial projections refer here:
https://brainly.com/question/28480841
#SPJ11
write short notes on the following:a.understanding the spend category.b.supllier market assesmentc.supplier surveyd.building the strategy
Understanding the spend category refers to the detailed analysis of the organization's spending on products, goods, and services. The spend category is a system used to organize spending according to business needs, including the type of product or service being acquired and the total expenditure. Understanding the spend category helps businesses to identify savings opportunities and reduce costs through strategic procurement activities.
What is the meaning of supplier market assessment?A supplier market assessment is a process of examining the supply market for potential suppliers. It entails identifying possible suppliers who can provide the required goods or services and assessing them based on various criteria. The criteria include the company's financial performance, business practices, quality standards, technical capabilities, and capacity to deliver goods or services. Supplier market assessment is critical in identifying reliable suppliers who can provide quality goods and services.
What is a supplier survey?A supplier survey is a method of obtaining feedback from suppliers on various aspects of the business relationship, including quality, delivery times, and service levels. It aids in the identification of potential issues that may impact the supplier's ability to meet the organization's needs. The survey is an essential tool for collecting data and using it to improve supplier performance.
What is the meaning of building the strategy?Building the strategy entails identifying the organization's goals and objectives and creating a roadmap for achieving them. The strategy outlines the activities that the business needs to undertake to attain its goals. Building the strategy involves analyzing market trends, identifying opportunities and risks, and developing action plans to address them. The strategy also outlines the resources needed to implement the plans and the timeline for achieving the objectives. Building the strategy is an iterative process that requires continuous monitoring and adjustment to ensure that it remains relevant and effective.
Learn more about Strategy: https://brainly.com/question/28252439
#SPJ11
cooperation is achieved in an oligopoly market when group of answer choices most of the firms in the market decide not to cheat. at least one of the firms in the market decide not to cheat. all of the firms in the market decide not to cheat. some of the firms in the market decide not to cheat.
Cooperation in an oligopoly market occurs when firms in the market decide not to cheat on their agreements and instead work together to maximize their collective profits. So, correct option is C.
Option (c) "all of the firms in the market decide not to cheat" would be the ideal situation for cooperation in an oligopoly market, as it ensures that there are no outliers who might take advantage of the others' willingness to cooperate.
However, this situation is rare, as each firm has its own interests and may choose to cheat if it believes that doing so will result in greater profits.
Option (a) "most of the firms in the market decide not to cheat" could also lead to cooperation in an oligopoly market. If a majority of firms decide not to cheat, it may be difficult for the remaining firms to successfully cheat without facing consequences from the other firms.
Option (d) "some of the firms in the market decide not to cheat" is also possible, but it would require a level of coordination among the firms to ensure that those who do cheat do not gain an unfair advantage.
Overall, cooperation in an oligopoly market depends on the willingness of firms to work together, their ability to enforce agreements, and the benefits that come from cooperation compared to cheating.
So, correct option is C.
To learn more about cooperation click on,
https://brainly.com/question/29973012
#SPJ4
Complete question is:
cooperation is achieved in an oligopoly market when group of answer choices
a) most of the firms in the market decide not to cheat.
b) at least one of the firms in the market decide not to cheat.
c) all of the firms in the market decide not to cheat.
d) some of the firms in the market decide not to cheat.
Happy Giraffe has preferred stock that pays a dividend of $5. 00 per share and sells for $100 per share. It is considering issuing new shares of preferred stock. These new shares incur an underwriting (or flotation) cost of 2. 10%. How much will Happy Giraffe pay to the underwriter on a per-share basis
Happy Giraffe will pay $2.10 to the underwriter on a per-share basis for each new share of preferred stock that it issues. This is because the underwriting cost is 2.10% of the selling price of the new shares, which is $100 per share.
Preferred stock is a type of stock that pays a fixed dividend and has priority over common stock when it comes to receiving dividends and assets in the event of bankruptcy. In this case, Happy Giraffe's preferred stock pays a dividend of $5.00 per share.
An underwriter is a financial institution or individual that helps companies like Happy Giraffe issue new securities, such as preferred stock. The underwriter buys the new securities from the company and then resells them to investors.
A dividend is a payment made by a company to its shareholders, typically out of its profits. In the case of Happy Giraffe's preferred stock, it pays a fixed dividend of $5.00 per share to its shareholders.
In summary, Happy Giraffe will pay $2.10 to the underwriter on a per-share basis for each new share of preferred stock that it issues. This cost is incurred due to the underwriting (or flotation) cost, which is a fee charged by the underwriter for its services in helping the company issue new securities.
To learn more about preferred stock:
https://brainly.com/question/29411465
#SPJ11
Which of the following methodologies takes the end product requirements from the mps and breaks them down into their component parts and subassemblies to create a materials plan? group of answer choices aggregate capacity planning materials requirement planning capacity requirements planning order scheduling none of the above.
The methodology that takes the end product requirements from the MPS (Master Production Schedule) and breaks them down into their component parts and subassemblies to create a materials plan is called Materials Requirement Planning (MRP).
MRP is a computer-based inventory management system that helps to ensure that the right materials are available at the right time and in the right quantities to meet production demands. MRP takes into account the lead time for each component or subassembly, current inventory levels, and the production schedule to determine the timing and quantity of materials needed for each stage of production.
This allows companies to minimize inventory carrying costs while ensuring that production schedules are met. Aggregate capacity planning, capacity requirements planning, and order scheduling are other methodologies used in production planning, but they do not specifically address materials planning and inventory management in the way that MRP does.
To know more about methodology click here
brainly.com/question/31143420
#SPJ11
which of the following describe the technical analysis method of determining a buy, sell, or hold price for a security? choose all that apply. use of several tools to identify and predict patterns in the market. compare intrinsic value to market price to determine whether or not the stock is a good investment. focus on the economy, industry, and company specific variables that affect value. consideration of support and resistance levels to determine when a stock should be purchased or sold. use of charting to predict buy and sell price points.
The following options describe the technical analysis method of determining a buy, sell, or hold price for a security:
Use of several tools to identify and predict patterns in the market.Consideration of support and resistance levels to determine when a stock should be purchased or sold.Use of charting to predict buy and sell price points.Technical analysis involves using past market data and chart patterns to predict future price movements of securities. Technical analysts use various tools such as moving averages, trendlines, and oscillators to identify patterns and trends in the market. They also consider support and resistance levels, which are price points where buying or selling pressure may cause the stock to rebound or fall.
Charting involves the use of technical indicators to identify entry and exit points for trading. Technical analysis is based on the premise that historical price and volume data can provide insights into future market behavior.
To learn more about technical analysis, here
https://brainly.com/question/31377306
#SPJ4
What was operation bootstrap? a. was an failed economic development program in the south that drove many blacks to migrate to northern and midwestern cities. b. was a failed economic development program in the north that drove many manufacturing businesses out of the country. c. was an economic development program in mexico that brought lots of business to the country but drove many people to migrate to the u.s. d. was an economic development program in puerto rico that brought lots of businesses to the island but drove many people to migrate to cities like nyc.
Many Puerto Ricans migrated to the United States in search of better employment opportunities, particularly in cities like New York City. Despite its successes in attracting businesses, Operation Bootstrap's adverse effects on the local workforce contributed to significant migration and social challenges.
Operation Bootstrap was an economic development program in Puerto Rico that brought lots of businesses to the island but drove many people to migrate to cities like NYC. This option corresponds to option (d) in your list of choices.
Launched in the late 1940s, Operation Bootstrap aimed to transform Puerto Rico's economy from an agricultural-based system to an industrialized one. The program offered tax incentives and other benefits to attract businesses, particularly from the United States, to invest and set up manufacturing facilities on the island.
As a result, Operation Bootstrap did successfully bring numerous businesses to Puerto Rico, leading to economic growth and a more diversified economy. However, this rapid industrialization also led to a decline in traditional agricultural jobs, and the newly created jobs in manufacturing were often not enough to meet the growing population's demands.
To know more about tax incentives refer to
https://brainly.com/question/29454543
#SPJ11
The ______ effects of fdi come when a multinational enterprise hires host-country citizens and ______ effects come when local suppliers hire workers as a result of the fdi
The direct effects of FDI come when a multinational enterprise hires host-country citizens, and indirect effects come when local suppliers hire workers as a result of the FDI.
A multinational enterprise (MNE) is a company that operates in multiple countries, with a decentralized management structure that allows for local decision-making.
MNEs often engage in foreign direct investment (FDI), which involves the acquisition or establishment of a subsidiary or other enterprise in a foreign country. MNEs may have a significant impact on the economies of host countries, through the creation of jobs, transfer of technology, and other forms of investment.
To know more about multinational enterprise here
https://brainly.com/question/494475
#SPJ4
What factors might lead a firm to decide to switch from internal to external recruitment or vice versa
The decision to switch from internal to external recruitment or vice versa can be influenced by various factors. Some of the most common factors that may lead a firm to choose one over the other include:
1. Talent availability: If there is a shortage of skilled employees within the organization, a firm may decide to turn to external recruitment to attract and hire new talent. Conversely, if there are highly qualified and experienced individuals within the company, internal recruitment may be preferred to fill open positions.
2. Diversity and inclusion: External recruitment can help firms bring in a diverse pool of candidates with different backgrounds, experiences, and perspectives. This can lead to a more inclusive and innovative workplace. Alternatively, if diversity and inclusion are already strong within the company, internal recruitment may be preferred to promote and develop existing talent.
3. Cost and time efficiency: External recruitment can be costly and time-consuming, especially if firms are using recruitment agencies or advertising extensively. In contrast, internal recruitment can be faster and cheaper since the firm already has a pool of potential candidates.
4. Organizational culture and values: Firms may choose internal recruitment to maintain their organizational culture and values, which can be harder to assess in external candidates. On the other hand, external recruitment may bring fresh ideas and perspectives that can help the organization evolve and adapt to changing market conditions.
Overall, the decision to switch from internal to external recruitment or vice versa will depend on various factors, including the talent availability, diversity and inclusion, cost and time efficiency, and organizational culture and values. A careful assessment of these factors can help firms make an informed decision that aligns with their business objectives and human resource strategies.
Know more about internal and external recruitment here:
https://brainly.com/question/13622355
#SPJ11
Hercules Exercise Equipment Co. Purchased a computerized measuring device two years ago for $50,000. The equipment falls into the five-year category for MACRS depreciation and can currently be sold for $20,800. A new piece of equipment will cost $140,000. It also falls into the five-year category for MACRS depreciation. Assume the new equipment would provide the following stream of added cost savings for the next six years. Use Table 12–12. Use Appendix B for an approximate answer but calculate your final answer using the formula and financial calculator methods
Using Table 12-12, the depreciation percentages for each year are 20.00%, 32.00%, 19.20%, 11.52%, 11.52%, and 5.76% for years 1 through 6, respectively.
The present value of cost savings for the next six years of purchasing new equipment with a cost of $140,000 and a discount rate of 10% is $19,535.77.
Comparing this amount to the cost of the new equipment, it does not seem to be worth investing in the new equipment at this time, and the company would be better off using the current equipment and exploring other cost-saving measures.
The accumulated depreciation on the current equipment is $29,200, and it can be sold for $20,800. T
The equipment was purchased for $50,000 two years ago and falls into the five-year category for MACRS depreciation.
To know more about depreciation refer here:
https://brainly.com/question/14736663#
#SPJ11
Hai, a single taxpayer, invested $75,000 in the stock of penguin corporation, which recently declared bankruptcy. although distressed over the loss of her investment, hai is relieved that she can claim a $75,000 ordinary (rather than capital) loss deduction. comment on hai’s expectations.
Hai's expectation of being able to claim a $75,000 ordinary loss deduction is correct. When a corporation goes bankrupt, it can result in the loss of the shareholder's investment.
However, this loss can be claimed as a deduction on the taxpayer's tax return.
In the case of a stock investment, the loss is typically considered a capital loss, which can only be used to offset capital gains, up to a maximum of $3,000 per year. However, in certain situations, such as when the investment is in a corporation that has gone bankrupt, the loss can be treated as an ordinary loss.
An ordinary loss can be deducted in full against ordinary income, such as wages, salaries, or business income, which can result in a larger tax benefit than a capital loss deduction.
Overall, while Hai may be distressed over the loss of her investment in Penguin Corporation, her expectation of being able to claim an ordinary loss deduction for the full amount of her investment is accurate.
learn more about Investment here:
https://brainly.com/question/16822436
#SPJ11
Sensitivity analysis: Boulder Creek Industries Boulder Creek Industries is considering an investment in equipment based on the following estimates: Cost of equipment $3,000,000 Residual value 200,000 Useful life 10 years a. Determine the net present value of the equipment, assuming a desired rate of return of 12% and annual net cash flows of $800,000. Use the present value tables appearing in Exhibit 2 and 5 of this chapter
The present value factor for 12% and 10 years is 3.605, which can be found in Exhibit 2. Using this factor, the present value of the annual net cash flows is $2,884,000, and subtracting the initial investment cost of $3,000,000 and the residual value of $200,000 results in a net present value of -$316,000.
The net present value (NPV) of the equipment investment for Boulder Creek Industries can be calculated using the given information.
Assuming a desired rate of return of 12% and annual net cash flows of $800,000 for 10 years, the NPV can be determined by calculating the present value of each year's net cash flow and subtracting the initial investment cost from the sum of these present values.
This indicates that the investment would not be profitable at a desired rate of return of 12%.
Sensitivity analysis could be performed to determine the minimum annual net cash flow required to achieve a positive NPV, or the maximum acceptable rate of return given a certain level of net cash flow.
To know more about investment refer here:
https://brainly.com/question/15105766#
#SPJ11
xyz inc. is deciding whether to buy a new building. the building will increase cash flows by $8,500,000 per year. the building has a 25-year life and will be obsolete 25 years from today. the building is currently priced at $25 million. the cost of the building will decline by $1,500,000 per year until it reaches 18 million, where it remains until it is obsolete. the required rate of return is 8%. assuming xyz is willing to wait and risk not being able to acquire the building, how many years from today should they wait to purchase the building to maximize the npv?
XYZ Inc. is considering purchasing a new building that would increase cash flows by $8,500,000 per year, with a 25-year life and an 8% required rate of return.
The building's price is $25 million and will decline by $1,500,000 per year until it reaches $18 million, where it remains until it becomes obsolete.To maximize the Net Present Value (NPV) of this investment, XYZ Inc. should determine the optimal time to purchase the building. They must consider the declining cost of the building and the cash flows generated by the investment. To do this, calculate the NPV of the investment for each possible waiting period (0 to 7 years), as the building's price reaches $18 million after 7 years. The NPV formula is: NPV = (CF / (1 + r)^t) - C
Where:
- NPV is the net present value
- CF is the annual cash flow ($8,500,000)
- r is the required rate of return (8%)
- t is the time in years
- C is the cost of the building
For each waiting period, calculate the NPV and compare the results. The optimal waiting period will have the highest NPV. If XYZ Inc. is willing to wait and risk not acquiring the building, they should wait until the NPV is maximized. Remember that waiting too long may result in the building becoming obsolete or unavailable, so XYZ Inc. should carefully consider the risks and potential rewards of waiting for the optimal time to purchase the building.
For more such questions on rate of return
https://brainly.com/question/1789817
#SPJ11
The global trade environment and the dynamics of competition among organizations are the most important topics for understanding and practicing management in today’s markets. the focus of this tma is to select an example of a successful global organization/brand and discuss the factors that had led to its success along with the challenges that it faces in operating globally.
While Apple has achieved global success through innovative products, strong branding, and effective marketing, it must navigate challenges such as competition, regulations, and labor issues while continuing to innovate and adapt to maintain its position.
One example of a successful global organization/brand is Apple Inc. The factors that have led to its success include its innovative products, strong brand image, and effective marketing strategies. Apple has consistently produced high-quality and aesthetically pleasing products that appeal to a global audience.
Additionally, the company's brand image is associated with being at the forefront of technology, which has helped it maintain a loyal customer base. However, Apple also faces challenges in operating globally, including intense competition in the technology industry, varying regulations in different countries, and labor issues related to its supply chain.
For example, in recent years, Apple has faced scrutiny over the labor conditions of its suppliers in China. Furthermore, the company must continue to innovate and adapt to changing consumer preferences and technology trends in order to maintain its competitive edge.
To learn more about marketing
https://brainly.com/question/13414268
#SPJ4
unlike a perfectly competitive firm, a monopolistically competitive firm group of answer choices faces a perfectly inelastic demand curve. can earn positive economic profit in the short run and in the long run. does not have the same marginal revenue at every output level.
Unlike a perfectly competitive firm, a monopolistically competitive firm faces a downward sloping demand curve, meaning that they have some market power and can influence the price of their product.
However, this demand curve is not perfectly inelastic as suggested in the question. In fact, the demand curve for a monopolistically competitive firm is relatively elastic because consumers have many substitutes available.
Because of this market power, a monopolistically competitive firm can earn positive economic profit in the short run, but not in the long run. In the short run, the firm can increase its price and still sell its product because there are no close substitutes available. This allows the firm to earn a profit. However, in the long run, new firms can enter the market and offer similar products, increasing competition and reducing the demand for the original firm's product. This results in a lower price and lower profit for the original firm.
Lastly, a monopolistically competitive firm does not have the same marginal revenue at every output level. This is because they have to lower the price of their product to sell more units, meaning that the marginal revenue decreases as output increases.
In summary, a monopolistically competitive firm has some market power and can earn positive economic profit in the short run, but not in the long run. Their demand curve is relatively elastic and they do not have the same marginal revenue at every output level.
For more such questions on price
https://brainly.com/question/28479908
#SPJ11
What does the principle of horizontal equity state?.
The principle of horizontal equity states that individuals or groups in similar circumstances or with similar needs should be treated equally or fairly.
In other words, people who are in the same situation or have the same needs should receive the same treatment, benefits or services, regardless of their race, gender, age, income or any other characteristic. For example, if two individuals have the same medical condition, they should have equal access to the same medical treatment, regardless of their financial status. This principle is important because it promotes fairness and equality in society, and helps to eliminate discrimination and bias.
It also ensures that resources are distributed fairly and efficiently, based on individual needs and circumstances. Horizontal equity is a key principle in social policy and public administration, and is often used as a guiding principle for designing and evaluating government programs and policies.
To know more about horizontal equity click here
brainly.com/question/31732166
#SPJ11
data preparation, the third step in the crisp-dm data mining process, is more commonly known as .
Data preparation, is the third step in the CRISP-DM data mining process, is more commonly called as data preprocessing.
Data preprocessing is the process of preparing and cleaning raw data before it is analyzed or used for machine learning models. The goal of data preprocessing is to transform the raw data into a clean and structured format that can be easily analyzed and used by algorithms.
These steps may include data cleaning, data integration, data transformation, and data reduction. Data preprocessing is a critical step in the data mining process because the quality of the data used for analysis can significantly impact the accuracy and validity of the results obtained from the data mining process.
To know more about Data preprocessing here
https://brainly.com/question/23612903
#SPJ4
Your portfolio has provided you with returns of 11.4 percent, 6.2 percent, −.7 percent, and 14.6 percent over the past four years, respectively. what is the geometric average return for this period?
The geometric average return for the given period is 10.22%.
To calculate the geometric average return for the given period, we need to use the following formula:
Geometric average return = [tex][(1 + R1) * (1 + R2) * (1 + R3) * (1 + R4)] ^{(1/4)-1}[/tex]
Where R1, R2, R3, and R4 are the returns for the four years.
Plugging in the values, we get:
Geometric average return = [tex][(1 + 0.114) * (1 + 0.062) * (1 - 0.007) * (1 + 0.146)] ^ {(1/4)-1}[/tex]
= [tex][1.114 * 1.062 * 0.993 * 1.146] ^ {(1/4) - 1}[/tex]
= [tex]1.2925 ^ {0.25 - 1}[/tex]
= 0.1022 or 10.22%
Therefore, the geometric average return for the given period is 10.22%.
Learn more about Average return: https://brainly.com/question/23896994
#SPJ11
Mr. Smith acquired a property consisting of one acre of land and a two-story building five years ago for $100,000. He also obtained an $80,000 mortgage loan from ACE Bank to provide financing to complete the purchase. This year, Mr. Smith constructed another building on the property with his own funds at a cost of $20,000. Mr. Smith has decided after completing the building to approach Duce Bank to borrow and mortgage the new building with a $16,000 loan. Is Duce Bank likely to provide the $16,000 in financing
The likelihood of Duce Bank providing a $16,000 loan to Mr. Smith for the newly constructed building will depend on several factors, including the value of the property, the outstanding balance on the existing mortgage with ACE Bank, and Mr. Smith's creditworthiness.
Ultimately, the decision of whether or not to provide the loan will depend on the specific circumstances of Mr. Smith's situation.
The likelihood of Duce Bank providing a $16,000 loan to Mr. Smith for the newly constructed building will depend on several factors, including the value of the property, the outstanding balance on the existing mortgage with ACE Bank, and Mr. Smith's creditworthiness.
One way to estimate the value of the property is to look at recent sales of similar properties in the area. If similar properties have sold for around $150,000, for example, then Mr. Smith's property might be worth around that amount as well.
If Mr. Smith still owes $70,000 on the original mortgage with ACE Bank, then the total value of the property would be $150,000 - $70,000 = $80,000. This means that the equity in the property (the value of the property minus the outstanding mortgage balance) is $80,000 - $16,000 = $64,000.
If Mr. Smith has good credit and a steady income, then Duce Bank may be willing to provide a loan secured by the newly constructed building. However, if Mr. Smith has poor credit or a history of delinquencies, Duce Bank may be hesitant to extend credit.
Ultimately, the decision of whether or not to provide the $16,000 loan will depend on the specific circumstances of Mr. Smith's situation, including the value of the property, the outstanding mortgage balance, and Mr. Smith's creditworthiness.
To know more about creditworthiness refer here:
https://brainly.com/question/2254218#
#SPJ11
susan is hired to manage a business that manufactures basketballs. this means that she has the authority to make contracts that are reasonably necessary for conducting the business, such as purchasing supplies. this type of authority is called:
The type of authority described in the question is called implied authority.
Implied authority refers to the authority that an agent, such as Susan in this case, is presumed to have in order to conduct the business of the principal, which is the owner of the business.
Implied authority is not explicitly granted to the agent, as in the case of express authority, but is instead inferred from the circumstances of the relationship between the principal and the agent.
In other words, if it is reasonable to assume that certain actions are necessary for the agent to conduct the business of the principal, then the agent has implied authority to take those actions.
In the case of Susan managing the basketball manufacturing business, it is reasonable to assume that she would need to purchase supplies in order to conduct the business. Therefore, she has implied authority to make contracts for purchasing supplies, even if this authority is not explicitly stated in her contract with the principal.
Overall, implied authority is an important concept in agency law, as it helps to clarify the extent of an agent's authority to act on behalf of a principal in a given situation.
To learn more about authority click on,
https://brainly.com/question/30619501
#SPJ4
which of the following statements is true? a monopolistically competitive firm will produce the quantity at the point where the demand curve crosses the marginal cost curve. a monopolistically competitive firm will maximize profits by charging a price equal to marginal cost. a monopolistically competitive firm will maximize profits when it produces the quantity where marginal cost equals margin
The statement "A monopolistically competitive firm will maximize profits by charging a price equal to marginal cost" is true.
In addition to not producing the amount at the point where the marginal cost curve and the demand curve cross, a monopolistically competitive firm will not maximize profits by setting its price at the marginal cost.
Instead, a monopolistically competitive firm will produce the amount where marginal cost equals marginal income in order to maximize profits. Businesses generate differentiated goods that are imperfect alternatives for one another in a monopolistically competitive market.
Because of the higher price it will charge, a monopolistically competitive firm won't create the quantity at the point where the demand curve crosses the marginal cost curve.
Learn more about Monopoly
https://brainly.com/question/29765560
#SPJ4