Answer:
NPW = -$136.539 million
The negative net present value means that the project is not financially feasible, and therefore the company does not approve or pursue this investment.
Explanation:
Data Given:
Initial cost = $150 million
Annual cost = $15 million
Annual revenue = $18 million
salvage value = $0
Time period = 8 years
MARR = 15%
Calculate Net present worth:
NPW = -$150 million + ($18 million - $15 million) (P/A, 15%, 8)
(P/A, 15%, 8) = 4.487
NPW = -$150 million + ($3 million * 4.487)
NPW = -$150 million + $13.461 million
NPW = -$136.539 million
The negative net present value means that the project is not financially feasible, and therefore the company does not approve or pursue this investment.
Answer:
Its action would be optimal given an ordering cost of $28.31 per order
Explanation:
According to the given data we have the following:
economic order quantity, EOQ= 55 units
annual demand, D=235
holding cost per one unit per year, H=40%×$11=$4.4
ordering cost, S=?
In order to calculate the ordering cost we would have to use the following formula:
EOQ=√(<u>2×D×S)</u>
(H)
Hence, S=<u>(EOQ)∧2×H</u>
2×D
S=<u>(55)∧2×4.4</u>
2×235
S=<u>13,310</u>
470
S=$28.31
Its action would be optimal given an ordering cost of $28.31 per order
The cause of this loan would be “big lending.”
<span>Advertising must be reviewed by the BRE, which is one of the requirements of the state. These big lenders also use their real estate licenses in order to accomplish the said activities.</span>
Answer:
b. Debt ratio
Explanation:
The liquidity ratio includes the current ratio, quick ratio, etc
where,
Current ratio = Total Current assets ÷ total current liabilities
And, Quick ratio = Quick assets ÷ total current liabilities
where,
Quick assets = Cash and cash equivalents + short-term investments + Accounts receivable (net)
These two ratios check the liquidity of the business organization whereas debt ratio shows a relationship between the total liabilities and the total assets. It checks the leverage of the firm whether it is capable to repay the borrowed amount or not
Hence, option b is correct
