Answer:
The Firm should not Buy and Install the press as it delivers a negative NPV of -$24,924 at 11% discount rate over its 4 year operations
Explanation:
The General rule is to appraise the investment based on various appraisal techniques.
A technique that should be considered must have special focus on the time value of money, the required rate of returns expected by the firm and other Cashflow considerations.
The Net Present Value (NPV) approach will be the best method to proceed with.
The NPV approach typically falls under the following decision tree:
a. If NPV is negative (Reject the proposal)
b. If NPV is positive (Accept if it's a singular project, Accept the highest positive NPV if it's for mutually exclusive Projects)
c. If Zero (this is the breakeven line at which the Project covers all its cost but does not return a profit.) Also referred to as the IRR
Kindly refer to the attached for detailed workings
Answer:
Given that Program instructions consists of:
- 60% floating point multiply
- 20% floating point divide
- 20% other instructions
Amdahl's law states that:
Execution time affected by improvement = (Execution time after improvement/ Amount of improvement) + (Execution time unaffected)
Assuming initially that floating point multiply, divide and other instructions have same clocks per instruction (CPI).
Part (a)
New execution time after improvement with multiply = (60) / 8 + (20 + 20) = 47.5
New execution time after improvement with Divide = (20) / 3 + (60 + 20) = 86.67
New system should be 4x faster which means new execution time should be below = 100/ 4 = 25.
Therefore, Management's goal can NOT be achieved by making the improvement with multiply or divide alone.
Part (b)
New execution time after improvement with multiply and divide = (60 / 8) + (20 / 3) + 20 = 34.17
Speed up = execution time of original machine / Execution time of new machine = (100 / 34.17) = 2.93
Therefore, new machine is 2.93 times faster than original machine.
Answer:
The correct answer is letter "A": market share.
Explanation:
Market share is calculated by taking a company's sales over a period and dividing it by the total sales of the industry over the same period. This measure is used to give the business and its rivals a general idea of the size of the company regarding its overall sector.
Answer:
The correct option is D
Explanation:
GDP (Gross Domestic Product) is the monetary amount of all the finished goods and services which is made within a country during a particular period. It measures or evaluates the value of the economic activity within a country.
Rise in GDP could be because of the strengthening in the property rights, increase in the investment in human capital and change from inward oriented policies to the outward policies.
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Based on the calculation below, incremental after-tax operating cash flow is $675,000
<h3>How to calculate incremental after-tax operating cash flow</h3>
This can be calculated as follows:
Profit before interest and tax = Revenue - Operating costs – Depreciation = $1,000,000 - $200,000 - $300,000 = $500,000
Operating income = Profit before tax – (Profit before tax * Tax rate) = $500,000 – ($500,000 * 25%) = $375,000
Therefore, we have:
Incremental after-tax operating cash flow = Operating income + Depreciation = $375,000 + $300,000 = $675,000
Learn more about cash flows here: brainly.com/question/18301011.
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