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Brums [2.3K]
3 years ago
6

Milton, a manager, is forced to turn down an idea for a new product from Steven, one of his most creative team members, because

of financial limitations. In order to prevent Steven from feeling discouraged, Milton should _____.
Business
1 answer:
inysia [295]3 years ago
3 0

Answer:

The correct answer is letter "A": give gentle feedback to Steven when turning down the idea.

Explanation:

Several problems may arise at the moment of developing a project within a company. Possibly the more common is not having enough funds to make plans possible. If an employee has created an attractive project that needs to be canceled because of insufficient funds the executive must make sure not to discourage the worker since in the future the financial situation of the company could change and the employee's help could be vital.

<em>Then, in Milton's case, he should give Steven gentle feedback on his work while canceling the project without mentioning the economic problems of the firm to avoid panic among workers and to avoid having Steven to take other measures such as looking another job where the entity can finance his ideas.</em>

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In working on a bid for project you have determined that $245,000 of fixed assets will be required and that they will be depreci
mote1985 [20]

Answer:

Question 1:

required investment $245,000

depreciation expense per year = ($245,00 - $23,200) / 5 = $44,360

you will also require $15,000 in working capital

annual cash costs = $68,500

what is the minimum amount of cash sales for accepting the project:

net cash flow₁ = {[(sales revenue - $68,500 - $44,360) x 0.65] + $44,360} / 1.14 = (0.65SR - $28,999) / 1.14 = 0.5702SR - $25,437.72

net cash flow₂ = {[(sales revenue - $68,500 - $44,360) x 0.65] + $44,360} / 1.14² = (0.65SR - $28,999) / 1.14² = 0.5002SR - $22,313.79

net cash flow₃ = {[(sales revenue - $68,500 - $44,360) x 0.65] + $44,360} / 1.14³ = (0.65SR - $28,999) / 1.14³ = 0.4387SR - $19,573.50

net cash flow₄ = {[(sales revenue - $68,500 - $44,360) x 0.65] + $44,360} / 1.14⁴ = (0.65SR - $28,999) / 1.14⁴ = 0.3849SR - $17,169.74

net cash flow₅ = {[(sales revenue - $68,500 - $44,360) x 0.65] + $44,360 + $15,000} / 1.14⁵ = (0.65SR - $13,999) / 1.14⁵ = 0.3376SR - $7,270.64

NPV = -initial outlay + cash flows

NPV = 0

initial outlay = cash flows

$260,000 = 0.5702SR - $25,437.72 + 0.5002SR - $22,313.79 + 0.4387SR - $19,573.50 + 0.3849SR - $17,169.74 + 0.3376SR - $7,270.64

$260,000 = 2.2316SR - $91,765.39

$351,765.39 = 2.2316SR

sales revenue = $351,765.39 / 2.2316 = $157,629.23

the closest answer is B = $155,119, but its NPV will be negative.

<u>so we have to select C = $162,515.75 that results in an NPV = $10,887. </u>

Question 2:

<u>The correct answer is D. return on equity will increase.</u>

If you lower your costs while your sales remain the same, your profits will increase as well as your ROE.  

7 0
4 years ago
The original price of a television is $500 you have a coupon for 25% off excluding tax what is the cost of the tv
ch4aika [34]
Original price = $500

Assume that the tax rate is 8%
Cost of the TV plus tax = 500*1.08 = $540
Worth of the 25% coupon = 0.25*540 = $135
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The cost of the TV with a coupon for 25% off excluding tax is $405.

Answer: $405

6 0
3 years ago
During January, its first month of operations, Knox Company accumulated the following manufacturing costs: raw materials $5, 310
mariarad [96]

Answer:

See the attached picture for detailed answer.

Explanation:

See the attached picture for explanation.

7 0
4 years ago
How the 4 factors of pruduction fit together land,capital,labor,entreprenurship​
Mrrafil [7]

Explanation:

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Lets consider an example:

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7 0
4 years ago
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klio [65]
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