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Sever21 [200]
3 years ago
14

a decline in discpsable incomeAssume a machine that has a useful life of only one year costs $2,000. Assume also that net of suc

h operating costs as power, taxes, and so forth, the additional revenue from the output of this machine is expected to be $2,300. If the firm finds it can borrow funds at an interest rate of 10%, the firm should
Business
1 answer:
Vlad1618 [11]3 years ago
6 0

Answer:

The firm should purchase the machine.

Explanation:

let the expected rate of return be x :

x = 2000 + 20000x% = 2300  

= 300/20

= 15%

Therefore, The expected rate of return (15%) exceeds interest rate (10%) of fund, the firm should purchase the machine.

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The beginning inventory of BG Action Figures is understated by $7 million at December 31, 20x8. What is the effect on 20x8 cost
AURORKA [14]

Answer: Understated by $7 million

Explanation:

Cost of goods old is calculated by deducting the closing balance of inventory from the Opening balance and the Purchases for the period in the manner:

Cost of Goods sold = Opening inventory + Purchases - Closing stock.

Going by the formula, if the opening inventory is understated by $7 million, the cost of goods sold will be understated by the same amount because opening inventory adds to Cost of goods sold.

3 0
3 years ago
Suppose a U.S. Government bond will pay $1,000 three years from now. If the going interest rate on 3‐year government bondsis 4%,
frutty [35]

Answer: $1120

Explanation:

I = PxRxT/100

= 1000 x 4 x 3 / 100

= $120

Yearly the bond gave a dividend of $40 which makes it $120 after 3years.

Present value of the bond

= $1000 + $120

= $1120

8 0
3 years ago
Management of Mittel Rhein AG of Köln, Germany, would like to reduce the amount of time between when a customer places an order
Delicious77 [7]

Answer:

1. The throughput time is 9 days

2. The MCE is 0.30

3. 70% of the throughput time was spent on non-value added activities.

4. The delivery cycle time is 23 days

5. The New MCE is 67.5%

Explanation:

1. To calculate the throughput time we would have to use to make the following calculation:

throughput time=process time+inspection time+movie time+queue time

throughput time=2.7+0.3+1+5

throughput time=9 days

2. To calculate the MCE we would have to use to make the following calculation:

MCE=value added time/throughput time

MCE=2.7/9=0.30

3. MCE is 30% which means that out of the total throughput time, time spent on value added activities was 30%. Thus it means that 70% of the throughput time was spent on non-value added activities.

4. To calculate the delivery cycle time we would have to use to make the following calculation:

delivery cycle time=wait time+throughput time

delivery cycle time=14+9=23 days

5. To calculate the new MCE we would have to use to make the following calculation:

New MCE=value added time/throughput time

New MCE=2.7/4

New MCE=67.5%

3 0
3 years ago
A newly issued 10-year maturity, 4% coupon bond making annual coupon payments is sold to the public at a price of $800. What wil
madam [21]

Answer:

40 dolllar for interest income

Explanation:

The taxable income will be the interest for the annual coupon payment:

$1,000 face value x 4% = $40

The purchase price will be considered for taxation purpose under capital gain if the bond is sold which is not the case. Thus, we must only determinate taxes considering the interest income from the coupon payment.

6 0
4 years ago
Which of the following strategies helps to smooth utilization of​ facility, equipment, and​ personnel? A. Market aggressively wh
svetlana [45]

Answer:

Letter C is correct. <u>Offer products with complementary demand patterns​ (e.g., jet skis and​ snowmobiles).</u>

Explanation:

This alternative is correct, as this strategy can be related to strategic capacity management, which can be defined as understanding the characteristics of organizational processes, which optimizes the use of the company's operational capacity.

Therefore, the strategy exemplified in alternative C, helps the organization to offer the desired quantity of products or services and helps to facilitate the use of facilities, equipment and personnel.

3 0
3 years ago
Read 2 more answers
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