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Mice21 [21]
2 years ago
10

Deep Mining and Precious Metals are separate firms that are both considering a silver exploration project. Deep Mining is in the

actual mining business and has an aftertax cost of capital of 16.7 percent. Precious Metals is in the precious gem retail business and has an aftertax cost of capital of 12.6 percent. The project under consideration has initial costs of $755,000 and anticipated annual cash inflows of $152,000 a year for 10 years. Which firm(s), if either, should accept this project?
Business
1 answer:
Julli [10]2 years ago
5 0

Answer:

Precious metals should accept the project

Explanation:

To determine which company should accept the project, one has to calculate the net present value.

The net present value is the present value of after tax cash flows from an investment less the amount invested.

NPV can be calculated using a financial calculator:

Cash flow in year 0 =

Cash flow each year from year one to ten =

For Deep Mining ,

I = 16.7%

NPV = $39,096.09

Precious Metals,

I = 12.6%

NPV = $83,144.67

Precious metals should accept the project because its npv is postive.

To find the NPV using a financial calacutor:

1. Input the cash flow values by pressing the CF button. After inputting the value, press enter and the arrow facing a downward direction.

2. After inputting all the cash flows, press the NPV button, input the value for I, press enter and the arrow facing a downward direction.

3. Press compute

I hope my answer helps you

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hram777 [196]

Answer:

Increase quantity to where AC = MC = D=AR=MR

Explanation:

A perfectly competitive market is where there are many firms in the industry producing homogeneous products. There is ease of entry and exit into and out of the market. They are price takers and earn normal profits in the long-run. In order to maximize profits, a firm in a perfectly competitive industry should produce an the quantity where its average cost is equal to marginal cost when AR = MR = D. In other words, when the AC and MC curves intersect with AR = MR = D curve.

<em><u>Please refer diagram</u></em>

The firm is currently producing at a point where AC > MC at quantity 1000. In order to reach AC = MC, the firm has to increase its quantity to Qe. As it increases quantity, although marginal cost increases, average cost falls because now fixed costs are spread over a larger quantity of output.

At Qe, the three curves intersect and is the point where this firm can maximize its revenue (Price = Pe). At a price higher than this, it would lose customers since there are many others producing the same product and customers can easily shift to another.

7 0
2 years ago
The QuickBooks Online ecosystem gives you and your clients access to a wide range of (1.)__________ to help (2.)___________ thei
Debora [2.8K]

Answer:

Apps,streamline

Explanation:

The QuickBooks EcoSystem can be regarded as a quick box software along with different apps that has connection with it. It brings about good functionality in Businesses, through QuickBooks EcoSystem, accountant of a company can easily connect with different apps that allows to manage client and improve productivity. It should be noted QuickBooks Online ecosystem gives you and your clients access to a wide range of apps to help streamline their business and increase efficiencies.

8 0
3 years ago
15 points please help
arsen [322]

Answer:nenhuma das questões a cima

Explanation:

8 0
1 year ago
Advertising is important for most companies, especially companies such as P&amp;G that sells mostly to end customers. But, most
kari74 [83]

Explanation:

All for-profit companies have a marketing strategy.

P&G is a business to consumer (B2C) company, so no matter how much you sell your products to large retailers, the end user will always be an individual whose needs may change and the company must be mindful that their products comply with user requirements.

P&G can establish marketing actions through retailers for which it sells, with in-store display advertising models. You can also use customer interaction to get fundamental feedback so that the company guides its pricing strategy and new product development.

So even with established market products, relationship marketing is a key strategy for large corporations that want to build customer loyalty and achieve market leadership.

5 0
3 years ago
Cycles de Oro produces 120,000 high-tek bikes a year and orders the brake assembly from IKON for $15.40 each. The order cost is
Ket [755]

Answer:

$3,412

Explanation:

The computation of the economic order quantity is shown below:

= \sqrt{\frac{2\times \text{Annual demand}\times \text{Ordering cost}}{\text{Carrying cost}}}

= \sqrt{\frac{2\times \text{120,000}\times \text{\$84}}{\text{\$2.31}}}

= 2,954 units

The carrying cost is

= $15.40 × 15%

= $2.31

The number of orders would be equal to

= Annual demand ÷ economic order quantity

= 120,000 ÷ 2,954 units

= 40.62 orders

Now The total cost of ordering cost is

Ordering cost = Number of orders × ordering cost per order

= 40.62 orders × $ 84

= $3,412

3 0
3 years ago
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