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2 years ago

A product whose demand rises when income rises, and vise versa, is a __

Business

1 answer:

Jlenok [28]2 years ago

7 0

Answer:

A product whose demand rises when income rises, and vise versa, is a Normal Good.

Explanation:

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BAK Corp. is considering purchasing one of two new diagnostic machines. Either machine would make it possible for the company to

suter [353]

Answer:

a) For MACHINE A

Net Present Value (NPV) 7208

Internal Rate of Return (IRR) 11,48%

For MACHINE B

Net Present Value (NPV) -13468

Internal Rate of Return (IRR) 6,99%

b)BAK Corp should buy MACHINE A

Explanation:

We use excel or a spreadsheet to calculate net present value and the profitability index of each machine. See document attached.

We use a cash flow to solve this problem.

At moment 0 we have the investment cost , in this case Original cost $76,700 $183,000 for Machine A and Machine B . From period 1 to period 8, we have inflows and outflow. (Estimated annual cash inflows $20,200 $40,500

Estimated annual cash outflows $5,040 $9,870).

Then, we calculate the Net cash flow that is the difference between benefits and cost.

We use all the result (positive and negative) in Net cash flow to get the profitability index, IRR.

Download xlsx

8 0

3 years ago

Why are europeans smarter about their own countries governments than we Americans are about ours?

a_sh-v [17]

Well that's not really a question. More of an opinion.

5 0

3 years ago

When making competitive priority decisions the firm: must ensure the pwp is correctly established must select the correct supply

snow_tiger [21]

When making competitive priority decisions the firm <u>"must make trade-off decisions".</u>

Making decisions requires exchanging off one thing against another.

In economics, the term trade-off is regularly communicated as an opportunity cost, which is the most favored conceivable option. A trade-off includes a forfeit that must be made to get a specific item or experience. A man surrenders the chance to purchase 'great B,' since they need to purchase 'great A. For a man setting off to a ball game, their financial trade-off is the cash and time spent at the ballpark, when contrasted with the option of watching the diversion at home and sparing their cash, in addition to the time spent heading to the ball game.

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3 years ago

In 1974, the price level for Pacifica was 100, the price level for Atlantica was also 100, and in the foreign exchange market 1

blsea [12.9K]

Answer: 0.78 pound mark exchange rate

Explanation:

The Purchasing power parity (PPP) is typically used to make comparison between the currencies of different countries' currencies and also used in comparing their standards of living.

According to PPP, the pound-mark exchange rate in 2003 will be calculated as:

= 280/360

= 0.78

6 0

3 years ago

MC Qu. 137 Given the following data, calculate product... Given the following data, calculate product cost per unit under absorp

Paha777 [63]

Answer:

Total Product Costs under absorption costing per unit $ 32.59

Explanation:

Under absorption costing the fixed overheads are included in the product costs. We calculate the total manufacturing costs having fixed overheads and variable overheads and divide it with the number of units to get the product cost per unit.

Expected units to be produced 51,000 units

Direct materials $ 12 * 51,000= $ 612000

Direct labor $ 18 per unit * 51,000= $918000

Overhead

Total variable overhead $ 31,000

Total fixed overhead $ 101,000

Total Manufacturing Costs $1662000

Total Manufacturing Costs per unit = Total Costs/ Total units= $1662000 / 51000= $ 32.59

4 0

3 years ago

Read 2 more answers

A product whose demand rises when income rises, and vise versa, is a __​

A product whose demand rises when income rises, and vise versa, is a __