Retained profits have several major advantages: They are cheap (though not free) – effectively the "cost of capital" of retained profits is the opportunity cost for shareholders of leaving profits in the business (i.e. the return they could have obtained elsewhere)
The answer is 15. Hope this helps!
Answer:
marginal cost = $2
Explanation:
given data:
cost on wool when 10 sweater made in one month = $15
cost on wool when 11 sweater made in one month = $17
fixed cost = $100
In case of no other cost present, marginal cost is given by
Marginal cost = cost of eleven sweaters - cost of ten sweaters
= $17 -$15
= $2
Answer:
B. Automation
Explanation:
Option A is incorrect as a human resource cannot be a material handling robot.
Option C is wrong as statistical quality control cannot do the same task as a material handling robot can. Statistical quality control can ensure quality by minimizing risk.
Options D and E are incorrect, respectively, as flexible manufacturing cannot improve the raw materials, and fixed layouts cannot be the element of the raw material process.
Option B is correct as a material handling robot is a machine. Therefore, automation is necessary to improve the raw materials handling process.
Answer:
$1140.28
Explanation:
The computation of the net present value of this investment is shown below:-
= Annual Cash flows × Present Value of Annuity Factor (r , n) - Initial Investment
as
Annual cash flows = $8600
Present Value of Annuity Factor (r , n)
r = 10% and n = 4 years
So, the Present Value of Annuity Factor will be the sum of the present value of 4 years at 10%
For Year 1 = 0.9091
For Year 2 = 0.8264
For Year 3 = 0.7513
For Year 4 = 0.6830
Total = 3.1698
Therefore,
Net Present Value = (Cash inflow × Total) -
Initial Investment
= ($8600 × 3.1698) - $26,120
= $27,260.28 - $26,120
= $1140.28
