1. To gain profit and earn a living.

A college of business building that has classrooms on the first floor, faculty offices on the second floor, and graduate assista

AVprozaik [17]

Answer:

Functional 

Explanation:

Function. a relationship in which for every input there exactly one output.

5 0

2 years ago

Your company, which has a MARR of 12%, is considering the following two investment alternatives:

mote1985 [20]

Answer:

future worth:

project A 11,615.26

project B 12,139.18‬

It should choose project B as their future value is greater

IRR of project A: 13.54%

We should remember that the IRR is the rate at which the net value is zero thus, equals the inflow with the cash outlay

It is calculate with excel or financial calculator due to the complex of the formula.

Explanation:

Project A

We calculate the future value of the cash flow per year and cost as we are asked for future value. The salvage value is already at the end of the project life so we don't adjust it.

Revenues future value

$C \times \frac{(1+r)^{time} -1}{rate} = FV\\$

C 15,000

time 8

rate 0.12

$15000 \times \frac{(1+0.12)^{8} -1}{0.12} = FV\\$

FV $184,495.3970

Expenses future value

$C \times \frac{(1+r)^{time} -1}{rate} = FV\\$

C 3,000

time 10

rate 0.12

$3000 \times \frac{(1+0.12)^{10} -1}{0.12} = FV\\$

FV $52,646.2052

Cost future value

$Principal \: (1+ r)^{time} = Amount$

Principal 40,000.00

time 10.00

rate 0.12000

$40000 \: (1+ 0.12)^{10} = Amount$

Amount 124,233.93

Net future worth:

-124,233.93 cost - 52,646.21 expenses + 184,495.40 revenues + 4,000 salvage value

future worth 11,615.26

Project B

cost:

$Principal \: (1+ r)^{time} = Amount$

Principal 60,000.00

time 10.00

rate 0.12000

$60000 \: (1+ 0.12)^{10} = Amount$

Amount 186,350.89

expenses 52,646.21 (same as previous)

revenues

$C \times \frac{(1+r)^{time} }{rate} = FV\\$

C 24,000

time 7

rate 0.12

$24000 \times \frac{(1+0.12)^{7} -1}{0.12} = FV\\$

FV $242,136.2815

TOTAL

242,136.28 + 9,000 - 52,646.21 - 186,350.89 = 12,139.18‬

Internal rate of return of project A

we write the time and cash flow for each period.

Time Cash flow

0 -40,000

1 -3,000

2 -3,000

3 12,000

4 12,000

5 12,000

6 12,000

7 12,000

8 12,000

9 12,000

10 16,000

IRR 13.54%

Then we write on excel the function =IRR(select the cashflow)

and we got the IRR of the project

6 0

3 years ago

Why might Business classification and behavior change?

Anika [276]

To be more professional in a business sense. If I am the president of a bank I want to be classical and professional. I change with my title.

4 0

3 years ago

Lion Industries required production for June is 132,000 units. To make one unit of finished product, three pounds of direct mate

OleMash [197]

Answer:

Raw materials to be Purchased 426,000

Explanation:

Raw materials production needs 396,000 (A)

Desired Ending Inventory 330,000 (B)

Total needs 726,000 (C) (A+B)

Beginning Inventory (300,000) (D)

Raw materials to be Purchased 426,000

(A)

Required production 132,000

each units required 3 pounds of raw materials per unit

so we multiply to get how many are required for production

(B) the desired inventory are additional units we need to purchase

(D) the beginning inventory are units we already have on inventory, decreasing our purchase needs.

6 0

3 years ago

The annual carrying cost for a consumer product is $115, the ordering cost is $1,150, and the annual demand is estimated to be 1

STatiana [176]

Answer:

Store should take the advantage of discount.

Explanation:

Economic order quantity is the level of units ordered which minimize the total cost.

The economic order quantity (EOQ) is computed by applying the following formula

EOQ = [ ( 2DO ) / H ]^1/2

where D = Annual Demand in units = 1,000

S = Setup or ordering cost = $1,150

H = Holding or carrying cost per unit, per year = $115

EOQ = [ ( 2 x 1,000 x $1,150 ) / $115 ]^1/2

EOQ = [ $2,300,000 / $115 ]^1/2

EOQ = 20,000^1/2

EOQ = 141.42 units

Cost of EOQ

Purchasing cost = 1,000 x $810 = $810,000

Ordering cost = (1,000 / 141.42) x $1,150 = $8,132

Carrying cost = ( 141.42 / 2 ) x $115 = $8,132

Total cost = $810,000 + $8,132 + $8,132 = $826,264

Cost of Discount

Purchasing cost = 1,000 x $810 x 80% = $648,000

Ordering cost = (1,000 / 151) x $1,150 = $7,616

Carrying cost = ( 151 / 2 ) x $115 = $8,683

Total cost = $648,000 + $7,616 + $8,683 = $664,299

Store should take the advantage of discount because it incurs lower cost.

4 0

3 years ago

1. To gain profit and earn a living.​

1. To gain profit and earn a living.