Answer:
NPV =$ 60,311.80
Explanation:
<em>The net present value (NPV) of a project is the present value of cash inflow less the present value of cash outflow of the project.</em>
NPV = PV of cash inflow - PV of cash outflow
We can set out the cash flows of the project using the table below:
0 1 2 3
Operating cash flow 136,000 136,000 136,000
Initial cost (274,000)
Working capital (61,000 ) 61,000
Salvage value <u> </u> <u> </u> <u> </u> 1<u>5000 </u>
Net cashflow <u> (335,000) 136,000 136,000 212,000.</u>
PV inflow= (136000)× (1.1)^(-1) + (136,000× (1.1)^(-2) + (112,000)× (1.1)^(-3)
= 395,311.80
NPV =395,311.80 -335,000
=$ 60,311.80
In the given scenario, Rembrandt Cosmetics accomplished its substitution primarily through strategic planning of equivalence.
<h3>What is strategic planning?</h3>
When the differences between two different strategic plans are identical, with other things being constant, such a situation is called as a strategic planning of equivalence.
Hence, strategic planning holds true regarding the given situation.
Learn more about strategic planning here:
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Answer:
200 units
Explanation:
For computing the number of units produced each time we need to applied the economic order quantity formula which is shown below:

where,
Annual demand is 1,600 units
Ordering cost per order is $25
And, the carrying cost or holding cost per unit per year is $2
Now placing these values to the above formula
So, the economic order quantity is

= 200 units
Answer:
C) scenario analysis considers the effect on NPV of changing multiple project parameters.
Explanation:
Scenario analysis is used to determine the effect on the end result if several parameters are changed . Sensitivity analysis on the other hand involves the effect on the end result due to change in one parameter. With regard to net present value, the scenario analysis on the project will based on effects of changing multiple parameters for example how NPV will change due to increase in price of the products sold, changes in inflation rate and changes in corporate taxes.