FisherCo is intending to invest in a new project. The hurdle rate is the minimum rate of return the firm will accept on this project.
The hurdle rate is the minimum rate of return a project must have in order for a project to be accepted. It can also be referred to as the discount rate or the required rate of return or the cost of capital.
When the hurdle rate is greater than the internal rate of return of a project, the project would be rejected. If the hurdle rate is less than the internal rate of return of a project, the project would be accepted.
To learn more, please check: brainly.com/question/17439820
Answer:
c. attention is paid to competitive priorities and strategic fit.
Explanation:
Managing process is the top level activity it involves various activity and decisions for the growth of an organization. It clearly states that the company shall grow, what are the goals, what are the objectives and what are the strategies.
This clearly reflects that management's main concern is to strategic performance, and how does it create a space in the market share, as gaining from competitive advantage.
The first Year of your business’s operations
The applicable formula is;
A = P(1-r)^n
Where;
A = Final purchasing power
P = Current purchasing power
r = inflation
n = Number of years when P changes to A
Confirming the first claim:
A = 1/2P (to be confirmed)
P = $3
r = 7% = 0.07
n = 10.25 years
Using the formula;
A = 3(1-0.07)^10.25 = 3(0.475) ≈ 3(0.5) = $1.5
And therefore, A = 1/2P after 10.25 years.
Now, give;
P = $9
A = 1/4P = $9/4 = $2.25
r = 6.5% = 0.065
n = ? (nearest year).
Substituting;
2.25 = 9(1-0.065)^n
2.25/9 = (1-0.065)^n
0.25 = (1-0.065)^n
ln (0.25)= n ln(1-0.065)
-1.3863 = -0.0672n
n = (-1.3863)/(-0.0672) = 20.63 years
To nearest year;
n = 21 years
Therefore, it would take approximately 21 years fro purchasing power to reduce by 4. That is, from $9 to $2.25.
Answer:
4,084
Explanation:
Calculation to determine the economic order quantity (EOQ) for Haulsee
Using this formula
Economic Order Quantity (EOQ) =((2* Annual Requirement * Cost per order)/Carrying cost per unit)^ (1/2)
Let plug in the formula
Economic Order Quantity (EOQ) = ((2*800,000*540)/(370*14%))^(1/2)
Economic Order Quantity (EOQ) = 4,084 units
Therefore the economic order quantity (EOQ) for Haulsee is 4,084 units
