Answer:
NPV = $39,230
Payback period = 3.64 years
Explanation:
The net present value (NPV) = (net annual cash flow x interest factor) - investment
NPV = ($110,000 x 3.993) - $400,000 = $439,230 - $400,000 = $39,230
The payback period = investment / net annual cash flow = $400,000 / $110,000 = 3.64 years or 3 years, 7 months and 19 days
You can also calculate the PV of each annual cash flow which will give you a more precise result, but the variation is minimal:
PV = ($110,000 / 1.08) + ($110,000 / 1.08²) + ($110,000 / 1.08³) + ($110,000 / 1.08⁴) + ($110,000 / 1.08⁵) = $439,198
and the NPV = $39,198
Answer:
Undervalued
Explanation:
The PPP exchange rate is the implicit exchange rate, so that everywhere, one dollar has the same purchasing power. In general, this exchange rate is different from the exchange rate on the market.
Because the same nominal GDP translates to a higher real GDP by using the PPP exchange rate, one Pakistan Rupee must be valued more in terms of U.S. dollars than in contexts of the market exchange rate under the PPP exchange rate. The Pakistan Rupee is therefore worth less than its true value in the economy, i.e., undervalued.
The answer is managerial behavior. It is because this is the
most important determinant of new product success because of its application
and function of having to provide an increase with the participation of
employees and the products that are being consumed by the consumers.
Answer: a reduction in safety stock and/or lead time
Explanation:
Kanban is a visual system that is used for the management of work as the work moves through a process. It should be noted that it is a concept that tells one what to produce, quantity to produce and when to produce it.
A reduction in the number of kanbans (given a constant container size) requires a reduction in safety stock and/or lead time.
Answer:
Explanation:
Let's first determine the free cash flow of the firm
Particulars Years
1 2 3
EBIT 540 680 750
<u>Tax at 36% (0.36*540) (0.36*680) (0.36*750) </u>
Less: 345.6 435.2 480
Net Capital -
Spending 150 170 190
<u>Change in NWC 70 75 80 </u>
Less: 125.6 190.2 210
The terminal value at the end of T =(3 years) is:
= 2011.26
Finally, the value of the firm can be computed as follows:
Years Free Cash Flow PVIF PV
1 125.6 0.6589 107.88
2 190.2 0.7377 140.31
3 210 0.6336 133.06
<u>Terminal Value 2011.26 0.6336 1294.33 </u>
<u>Value of the firm ⇒ $1655.58</u>
