Question Options:
A) economic order quantity
B) partial productivity
C) multifactor productivity
D) internal service quality
Answer: MULTIFACTOR PRODUCTIVITY.
Explanation: Multifactor productivity is also known as total factor productivity can be defined as the elements or influences that determines the output in production from the inputs. Like in this question, the company determined the inputs (wood, metal, fabric, labor hours, capital, and the electricity) required to produced an output (chair).
How to calculate Open-to-buy:
Open-to-buy = planned purchases - (orders received + merchandise ordered)
Planned purchases = $2,500
Received orders = $1,200
Ordered merchandise = $700
Open-to-buy = $2,500 - ($1,200 + $700)
Open-to-buy = $2,500 - $1,900
Open-to-buy = $600
Answer:
The payback period is more than 5 years
Explanation:
Net present value is the Net value of all cash inflows and outflows in present value term. All the cash flows are discounted using a required rate of return.
Year Cash flow PV factor Present Value
0 ($490,000) 1 ($490,000)
1 $40,000 0.909 $36,360
2 $10,000 0.826 $8,260
3 $120,000 0.751 $90,120
4 $90,000 0.683 $61,470
5 $180,000 0.621 <u> $111,780 </u>
Net Present Value ($182,010)
NPV of this Investment is negative so, it is not acceptable.
Payback period
Total Net cash inflow of the investment is $440,000 and Initial investment is $490,000. This investment will take more than 5 years to payback the initial investment.
I had to look for the options and here is my answer. In the comparison of political, economic and environmental push and pull factors, we can say that the statement that shows accuracy related to this is this: "the most common environmental push factor is water." (This answer is based on the actual options attached to this question.)
