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Softa [21]
3 years ago
7

You are the manager of a large​ crude-oil refinery. As part of the refining​ process, a certain heat exchanger​ (operated at hig

h temperatures and with abrasive material flowing through​ it) must be replaced every year. The replacement and downtime cost in the first year is ​$175 comma 000175,000. This cost is expected to increase due to inflation at a rate of 77​% per year for sixsix years​ (i.e. until the EOY 77​), at which time this particular heat exchanger will no longer be needed. If the​ company's cost of capital is 1515​% per​ year, how much could you afford to spend for a higher quality heat exchanger so that these annual replacement and downtime costs could be​ eliminated?
Business
1 answer:
lubasha [3.4K]3 years ago
5 0

Answer:

The company could pay up to 866,965.89 dollars today to solve the current heat exchanger situation

Explanation:

We have to determinate the present value of 7 year annuity which increase at a rate of 7% when the cost of capital is 15% being the first quota 175,000 dollars

\frac{1-(1+g)^{n}\times (1+r)^{-n} }{r - g}  

grow rate 0.07  

required return 0.15

Cuota 175,000

n 7

PV =  866,965.89  

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Toyota's just- in- time system is an example of using transfer pricing to avoid price controls. backward (upstream) integration.
wel

Answer:

quasi vertical integration

Explanation:

Quasi vertical integration is the vertical integration in which there is ownership by one firm i.e. downstream that closed to point where consumption ends or the upstream where the specialized tool and equipment are used

Also the firm that controls has a strong position but it is less as compared with the real vertical integration

Therefore according to the given situation, the second option is correct

4 0
3 years ago
The world's largest bank, Deutsche Bank, set as its objective to make its brand name as recognizable in the United States as Fed
Gemiola [76]

Answer:

A. Tactical Planning

Explanation:

Tactical planning is a type of an organization's strategic plan used in achieving a specific goal. It's used after an organization outlines a strategic plans indicating general organizational goals and objectives. Tactical plans usually describes the methodology to be used in achieving each of those general goals in the strategic plan. It is done in order to achieve long term goals. Therefore, for Deutsche bank to be able to implement their long range plan, they need to employ the use of tactical planning.

8 0
2 years ago
In each of the following scenarios, explain and categorize the cost of inflation.a) Because inflation has risen, the J.Crew clot
Kazeer [188]

Answer:

Consider the following explanation

Explanation:

a) J. Crew is issuing its catalogs monthly in response to inflation. This will incur cost and it is known as 'Menu Cost'.

b) Grandpa has bought annuity which has promised $10,000 a year for the rest of his life. However, higher than expected inflation means grandpa has lesser purchasing power. This is loss of purchasing power and also 'redistribution cost'. In higher inflation borrower tends to get benefit. Here insurance company is at the gain.

c) Maria is witnessing loss of purchasing power because of hyper inflation. In such scenario, cost keeps rising and product's price could be higher a few hours later. This was witnessed in Germany as well as in Zimbabwe. People run to the stores as soon as they get cash or salary. It is known as 'shoe leather cost'. People make frequent trips to banks or stores but do not keep cash in fear of losing value.

d) Gita actually earned only 5% on her portfolio but as her income is in taxable bracket so she has to pay 20% tax. Her income from portfolio not even compensated inflation. This is a redistribution cost and also known as fiscal drag. More people fall into bracket because higher nominal income but real income is neglected which makes people worse off.

e) Father thinks that son is earning far more than him but inflation over the period of time erodes purchasing power and it could be possible that current income might be lower, same or higher comparing to inflation data. However, if it is lower then it is obviously loss of purchasing power.

5 0
3 years ago
According to bartlett and ghoshal, how should firms from developing countries approach international expansion?
lapo4ka [179]

According to bartlett and Ghoshal, They suggest that companies should use the entry of foreign multinationals as an opportunity to learn from these competitors by benchmarking their operations and performance against them.

A company is a legal entity formed by a group of individuals to conduct and operate a commercial or industrial business. A company may be organized in various ways for tax and financial liability purposes, depending on the corporate law of its jurisdiction.

A company means a legal entity or legal entity established under the Companies Act. It may be a limited or unlimited company, a private or public company, a limited liability company or company with share capital, or a company of common interest.

corporation means a company, partnership, association, corporation, trust, foundation, or organized group of individuals, whether incorporated or not, which (in its official capacity), Recipient, or similar officer or processor. Purpose of the above.

Learn more about the company here: brainly.com/question/24448358

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3 0
2 years ago
A firm’s statement of values requires a lot of pruning. There are many acceptable values, but to be effective, the list must be
Galina-37 [17]

Answer:

Culture.

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A firm’s statement of values requires a lot of pruning. There are many acceptable values, but to be effective, the list must be short. Executives choose the most important values. Therefore, the clue to <u>Culture</u> is in what is chosen.

Companies recruit candidates who are most likely to fit their culture. Studies have found that a good fit between a candidate's personality and the company's culture leads to better retention. Companies can also use hiring decisions and training to maintain their culture.

6 0
3 years ago
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