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anastassius [24]
4 years ago
10

Now suppose this project has an investment timing option, because it can be delayed for a year. The cost will still be $70 milli

on at the end of the year, and the cash flows for the scenarios will still last 3 years. However, Tropical Sweets will know the level of demand and will implement the project only if it adds value to the company. Perform a qualitative assessment of the investment timing option’s value.
Business
2 answers:
padilas [110]4 years ago
5 0

Explanation:

Qualitative analysis;

The given case belongs to real options in finance terms where the project offers tangible assets in comparison to financial instruments.

The project is of real option. The value of any real option would be more when:

  • the project under consideration is very risky
  • With respect to timing option value, there is time to change the decisions

Having said that, since project is risky and investment can be made later, hence it would be more feasible to wait and observe

vitfil [10]4 years ago
4 0

Answer:

Refer below.

Explanation:

Qualitative Assessment

The value of real option increases if:

1.the underlying project increases risk.

2.there is quite a while before you should practice the alternative.

Therefore,

The project is risky and has 1 year before we should choose, so the alternative to hold up is likely important.

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<u>Answer: </u>True

<u>Explanation:</u>

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The multinational companies have their offices, distribution and production in different countries but they maintain same set of policies and procedures which makes decision making quick and easier. Through this way they maintain the global consistency.

4 0
3 years ago
Searing food only until the surface begins to stiffen is a/an A. white braise. B. parboil. C. stew. D. emulsification.
stiv31 [10]
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5 0
3 years ago
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g Which inventory costing method assigns to ending merchandise inventory the newestlong dashthe most recentlong dashcosts incurr
Lena [83]

Answer:

B. ​First-in, first-out​ (FIFO)

Explanation:

First-in, first-out (FIFO) is an accounting principle which refers to a process whereby assets that are purchased first are sold first. In this situation, the cost in which the particular inventory was purchased is still the same cost with which it is sold out.

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4 years ago
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Which situation would not change a buyers market into a sellers market?
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7 0
3 years ago
Crane Inc. had beginning inventory of $12,000 at cost and $19,600 at retail. Net purchases were $105,056 at cost and $159,600 at
zimovet [89]

Answer:

Crane Inc.

The ending inventory at cost using the conventional retail method is:

= $23,426.

Explanation:

a) Data and Calculations:

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Beginning inventory    $12,000    $19,600

Net purchases             105,056    159,600

Net markups                                     9,600

Goods available        $126,656  $188,800

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Cost of goods sold     107,602 ($160,600 * 67%)

Ending inventory       $23,426

7 0
3 years ago
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