<span>An organization's level of differentiation is best determined by examining environmental complexity.
</span>Environmental complexity describes forces in an organization by way of number, the strength the organization has and/or the independence. By measuring this we are able to see how strong the organization is and the knowledge an organization has.
Answer:
Forecasts for groups of products tend to be more accurate.
Explanation:
Forecast for the groups of product is relatively more accurate than individual products. The uncertainty factor for individual product are higher than the group of product because any positive or genitive variance in variances are netted off in the group. So, the forecasted value of group are more accurate than every individual items.
Answer:
$171,000
Explanation:
Purchases in February = ($120,000 * 25%) + ($180,000 -$180,000*25%)
Purchases in February = $30,000 + $135,000
Purchases in February = $165,000
Payment in February = ($180,000 * 40%) + ($165,000 * 60%)
Payment in February = $72,000 + $99,000
Payment in February = $171,000
So, the bdgeted cash payments for inventory in February 2014 will be $171,000.
Answer:
NPV = $1.49 million
Explanation:
<em>The NPV is the difference between the PV of cash inflows and the PV of cash outflows. A positive NPV implies a good investment decision and a negative figure implies the opposite. </em>
<em>NPV of an investment: </em>
NPV = PV of Cash inflows - PV of cash outflow
But we will need to work out the discount rate to be used for discounting the cash flows. Hence, we need to determine the cost of capital as follows:
Step 1: After-tax cost of debt
After tax cost of debt = pre-tax cost of debt × (1-tax rate rate)
= 9%× (1--0.3)=6.3%
Step 2 : Weighted Average cost of capital (WACC)
WACC=( 0.25×6.3%) + (0.75× 13%) =11.325
%
Step 3:Net Present Value (NPV)
PV of cash inflow= (1- (1.11325^-5)/0.11325)× 13.5 = 49.49 million
Initial cost = $48 million
NPV = 49.49 million - $48 million =$1.49 million
NPV = $1.49 million