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1 year ago

The Michener Corporation is trying to choose between the following two mutually exclusive design projects: 63000

Business

1 answer:

Tomtit [17]1 year ago

4 0

The Michener Corporation Company must choose Project 2 as its more profitable. Here's why,

<h3><u>SOLUTION: -</u></h3>

Profitability Index PI = ( PV of future cash flows) / Initial investment

PV of future cash flows = Σ CFn / ( 1 + r )ⁿ, where, CFn is the cash flow for year.

Required return = r = 11%

For Project 1,

PV of future Cash Flows

= 32000 / ( 1+0.11 ) + 32000 / ( 1+0.11 )² + 32000 / ( 1 + 0.11 )³ = $78198.87

Initial Investment = $63000

⇒ PI = 78198.87 / 63000 = 1.24

For Project 2,

PV of future Cash Flows

= 9750 / ( 1 + 0.11 ) + 9750 / ( 1 + 0.11 )² + 9750 / ( 1 + 0.11 )³ = $23826.21

Initial Investment = $18100

⇒P or profitability index = 23826.21 / 18100

= 1.32

Therefore, According to profitability index rule, project with highest PI should be selected. Hence, Project 2 should be selected.

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Answer:

$418,550

Explanation:

Steps are shown below:

a. The computation of the economic order quantity is shown below:

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= $\sqrt{\frac{2\times \text{52,000}\times \text{\$50}}{\text{\$1.25}}}$

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= Economic order quantity ÷ 2

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= 1,020 units

d. The total cost of ordering cost and carrying cost equals to

Ordering cost = Number of orders × ordering cost per order

= 25.49 orders × $50

= $1,275

Carrying cost = average inventory × carrying cost per unit

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= $1,275

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Purchase cost = Annual demand × cost per unit

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From the consumer’s perspective, the elements of an imc strategy can be viewed as being either.

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From the consumer’s perspective, the elements of an IMC strategy can be viewed as being either "Passive or Interactive."

<h3>What is IMC strategy?</h3>

The integrated marketing communications (IMC) plan transforms your marketing department from a collection of independent operations into one cohesive strategy.

IMC combines your numerous marketing materials and channels, including digital, social media, PR, and direct mail, into one trustworthy message.

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2 years ago

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A) November 30

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Answer:

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