Answer:
$17,877
Explanation:
initial outlay = ?
net cash flows years 1 to 5 = $3,000 - $400 = $2,600
net cash flows years 6 to 10 = $3,000 - $800 = $2,200
assuming that the discount rate is 6%, we need to determine the maximum amount of initial investment that would result in the NPV = 0
in order to do this we have to calculate the present value of the future cash flows:
PV = $2,600/1.06 + $2,600/1.06² + $2,600/1.06³ + $2,600/1.06⁴ + $2,600/1.06⁵ + $2,200/1.06⁶ + $2,200/1.06⁷ + $2,200/1.06⁸ + $2,200/1.06⁹ + $2,200/1.06¹⁰ = $17,877
that means that the maximum amount that can be invested = $17,877, and that way the NPV = 0
Answer:
Stakeholder's Tolerance Level.
Explanation:
Stakeholders' tolerance levels are key to completing a full risk management plan. This is because the tolerances are critical to determining which hazards need to be accepted and the ones to be limited. Basically, a stakeholder risk tolerance seeks to determine, assess and gauge the general level of risk an entity is willing to undertake and/or accept.
When an organization intends to do a project, for instance, varying reports including feasibility reports need to be come up with to assess the realization objective of the project. While coming up with this, an organization must assess its tolerance levels as to factors that may hinder the realization of the underlying goal.
There are often two categories of tolerance level. A high tolerance, and a low tolerance. A high tolerance in this instance would be more opened to factors that might put the project into high risk tendency. Whereas, the opposite is the low tolerance, as this is not opened to high risk tendency. However, to arrive at this, an organization will need to come up with a comprehensive management plan, detailing the risk levels, appetite and how aversive they could be in undergoing a given concern. Tolerance levels should be evaluated at critical decision making juncture. From the input, quality, performance, in process, and other essential line items. Tolerance level is set across all functions. This will thus form a general guide an organization intends to pursue.
First of all, the laissez-faire economics is also known as hands-off apporach. This is from the 19th century. The leaders of the Middle class had a good reponse by embracing this type of approach. Some of the people looked to modify this kind of apporach for the government to have more control. Generally was accepted but also wished to be modified in order for the high class leaders to get control
If the manufacturer of Cool Whip were to introduce a chocolate-flavored Cool Whip and still continue to produce all of its other Cool Whip products, this would be an example of (C) line extension.
<h3>
What is line extension?</h3>
- The process of expanding an established product line is referred to as line extensions.
- When a corporation with a well-known brand releases new items in a product segment.
- The corporation capitalizes on the existing product's value to the market and presents new options to consumers.
- A corporation launches a brand line extension by using the brand name of an existing product to launch a new, somewhat different item in the same product category.
- Line extension would be demonstrated if the manufacturer of Cool Whip introduced a chocolate-flavored Cool Whip while continuing to produce all of its existing Cool Whip products.
Therefore, if the manufacturer of Cool Whip were to introduce a chocolate-flavored Cool Whip and still continue to produce all of its other Cool Whip products, this would be an example of (C) line extension.
Know more about line extension here:
brainly.com/question/14720584
#SPJ4
The complete question is given below:
If the manufacturer of Cool Whip were to introduce a chocolate-flavored Cool Whip and still continue to produce all of its other Cool Whip products, this would be an example of
a. a brand extension.
b. quality modification.
c. line extension.
d. a new-to-the-world product.
e. functional modification.
