Answer:
Net Income (Loss) = $440,000
Explanation:
Total Fixed Cost = $460000
Total Variable Cost = $11 * 100,000 unit = $1100000
Total Revenue = $20 * 100,ooo unit = $2000000
Contribution Margin = TR- TVC = ($200,000 - $1,100,000) = -$900,000
Net Income = Contribution margin - Total Fixed cost
Net Income (Loss) = $900,000 - $460,000
= $440,000
Answer:
USING 0% DISCOUNT RATE
PROJECT E
Year Cashflow [email protected]% PV
$ $
0 (23,000) 1 (23,000)
1 5,000 1 5,000
2 6000 1 6,000
3 7000 1 7,000
4 10,000 1 10,000
NPV 5,000
PROJECT H
Year Cashflow [email protected]% PV
$ $
0 (25,000) 1 (23,000)
1 16,000 1 16,000
2 5,000 1 5,000
3 4,000 1 4,000
NPV 2,000
Project A should be accepted
USING 9% DISCOUNT RATE
Year Cashflow [email protected]% PV
$ $
0 (23,000) 1 (23,000)
1 5,000 0.9174 4,587
2 6000 0.8462 5,077
3 7000 0.7722 5,405
4 10,000 0.7084 7,084
NPV (847)
PROJECT H
Year Cashflow [email protected]% PV
$ $
0 (25,000) 1 (23,000)
1 16,000 0.9714 15,542
2 5,000 0.8462 4,231
3 4,000 0.7722 3,089
NPV (138)
None of the projects should be accepted because they have negative NPV
Explanation:
The question requires the computation of NPV using 0% and 9%.
The cashflows of the two projects will be discounted at 0% and 9%.
The discount factors for each project can be calculated using the formula (1+r)-n. The cashflows of the projects will be multiplied by the discount factors to obtain the present values. NPV is the difference between present values of cash inflows and initial outlay.
Your answer is:
It is too difficult to compete with major retailers like Target and Best Buy.
When a lot of people buy things from a store, there is a lot of turbulence in many stores, espeically in big retailers. The answer will be It is too difficult to compete with major retailers like Target and Best Buy.
Best of Luck!
Answer:
The correct answer is option b.
Explanation:
If the federal fund's rates were above the targeted rate, the Fed would need to move it towards the targeted rate. To move the interest rate towards the targeted rate, the government would need to increase the money supply. This can be done by buying bonds. When the Fed buys bonds they pay for it, this causes the money supply to increase. As the supply curve shifts to the right, the interest rate will fall down.
