Answer: d. $282,000
Explanation:
The workforce complement is to increase by 10%;
= 471 * 10%
= 47.1
= 47 people
Recruiting cost = 47 * (recruiting base + recruiting spend)
= 47 * ( 1,000 + 5,000)
= $282,000
Answer:
C. honorarium paid to the secretary
Explanation:
Answer:
The company will produce the requested 150 units of A for a gain of 300 dollars
and then use his resourses to produce B yielding a gain of 90 dollars
total of 390 profit
Explanation:
The company will produce at least 150 units of product A therefore:
lbs used: 150 x 3 = 450
minutes of labor used 150 x 8 = 1,200
leaving available:
1,200 - 450 = 750 lbs
1,500 - 1,200 = 300 mins
As time is the most scarce resource we allocate base on thecontribution per minute:
product A $2 of profit for 8 minutes: 0.25 dollars per minute
product B $1.5 of profit for 5 minutes: 0.30 dollars per minute
As product B is more profitable considering labor time we use the entire amount left to produce product B
300 min / 5 minutes = 60 units of b
Answer: D. will be less than the intrinsic value of stock Y
Explanation:
Based on the information given above, the intrinsic value of Stock X will be calculated thus:
D1 = Dividend in next year = $3
g = growth rate = 7%
r = = 13%
Therefore, intrinsic value of Stock X will be:
= D1 / (r-g)
= 3 / (13% - 7%)
= 3/6%
= 3 / 0.06
= $50
Therefore, the intrinsic value of stock X is $50.
Intrinsic value of Stock Y will b calculated thus:
D1 = $4
g = 7%
r = 13%
Intrinsic value of Stock Y will be:
= D1 / (r-g)
= 4 / (13% - 7%)
= 4/6%
= 4 / 0.06
= 66.67
Intrinsic value of Stock Y is $66.67
Therefore, the intrinsic value of Stock X will be less than the intrinsic value of Stock Y
Answer:
The answer is
A. 26.46%
B. $5,958,354.88
Explanation:
A.
IRR = CFo/(1 + IRR)^0 + CF1/(1 + IRR)^1 + CF2/(1 + IRR)^2 + CF3/(1 + IRR)^3 + CF4/(1 + IRR)^4 + CF5/(1 + IRR)^5
CFo = -$10,000,000
CF1 = $3,000,000
CF2 = $3,500,000
CF3 = $4,000,000
CF4 = $4,900,000
CF5 = $5,000,000
Using a financial calculator;
IRR = 26.46%
B.
NPV = -CFo + CF1/(1+ r)^1 + CF2/(1 +r)^2 + CF3/(1 + r)^3 + CF4/(1 + r)^4 + CF5/(1 + r)^5
CFo = -$10,000,000
CF1 = $3,000,000
CF2 = $3,500,000
CF3 = $4,000,000
CF4 = $4,900,000
CF5 = $5,000,000
Using a financial calculator;
NPV = $5,958,354.88
