Answer:
If discount rate is 11.7% Project B should be accepted.
If discount rate is 13.5% both projects should be rejected
Explanation:
If the Net present value of Project A is higher than that of project B, we will accept project A and vice versa.
<u>Under 11.7% Discount Rate</u>
Net Present Value-Project A = -82000 + 34000 / 1.117 + 34000 / 1.117² + 34000 / 1.117³ = $85.099
Net Present Value-Project B = -82000 + 115000 / 1.117³ = $516.029
Project B should be accepted as it has a higher NPV.
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<u>Under 13.5% Discount Rate</u>
Net present Value-Project A = -82000 + 34000 / 1.135 + 34000 / 1.135² + 34000 / 1.135³ = - $2397.49
Net Present Value-Project B = -82000 + 115000 / 1.135³ = - $3347.91
Both projects should be rejected as both have negative NPVs
Answer:
The $12,000 is the material handling cost should be assigned to products made in March.
Thus, the correct option is a. $12,000
Explanation:
For computing how much of the material handling cost should be assigned, first we have to calculate the per pound of material. The formula is shown below:
Per pound of material = Labor cost ÷ Number of pounds
= $160,000 ÷ 800,000
= $0.2 per pound of material
Now, multiply this per pound of material with moving pounds.
In mathematically,
Material Handling cost = Per unit of pound × Moving material
= $0.2 × 60,000
=$12,000
Hence, the $12,000 is the material handling cost should be assigned to products made in March.
Thus, the correct option is a. $12,000
Steve will get $11360 with the process of simple interest.
<h3>what is simple interest?</h3>
Simple interest is calculated based on a loan's principal or the initial deposit into a savings account. Simple interest doesn't compound, therefore a creditor will only charge interest on the principal sum, and a borrower will never be required to pay further interest on the interest that has already accrued.
Rate of interest = 14%
principal + interest = $8000
Time = 3 years
Simple interest
Now principal + interest = 8000+3360 = 11360
Therefore, Steve will get $11360.
To learn more about simple interest from the given link
brainly.com/question/25793394
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Answer:
Legal and environmental.
Explanation:
PEST is a short form for political, economic, social, and technological factors. These are external factors likely to impact business performance. Entrepreneurs should analyze, understand them, and include their effects in business plans.
Other external factors that may affect business performance are legal and environmental.
For the legal factors, an entrepreneur should analyze the impact of possible changes in laws and legal interpretations on their businesses. In the environmental analysis, the entrepreneur should be aware of the industry's environmental regulations and restrictions. They should plan for possible changes in license limitations.
