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Shkiper50 [21]
3 years ago
14

Leonore's Luxury Leather Footwear Corp. conducted a SWOT analysis and determined that at least 57% of consumers would demand hig

h-end footwear and their sales should increase by 18% in the next year. This vision of what could happen is known as a _____.
Business
1 answer:
FinnZ [79.3K]3 years ago
3 0

Answer: Forecast.

Explanation:

The predicted increase in sales of of the Leonore's Luxury Leather footware is an example of a forecast of future events. A forecast is an estimation of an event or trend that would possibly occur in the future.

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An existing electrical power line needs to have its capacity increased, and this can be done in either of two ways. The first me
nekit [7.7K]

Answer:

3 years

Explanation:

<u>First method</u>

The PV of the investment can be written as:

PV1 = $15,000 + $32,500/(1+0.06)^n

<u>Second method</u>

The PV of the investment can be written as:

PV2 = $23,000 + $23,000/(1+0.06)^n

After n years both projects will be economically equal. Hence their present value must be equal PV1 = PV2

$15,000 + $32,500/(1.06)^n = $23,000 + $23,000/(1.06)^n

$23,000 - $15,000 = $32,500/(1.06)^n - $23,000/(1.06)^n

$8,000 = $9,500/(1.06)^n

(1.06)^n = $9,500/$8,000

(1.06)^n = 1.1875

Taking log on both sides we get:

nlog1.06 = log 1.1875

n = log 1.1875/log 1.06

n = 0.07463361829/0.02530586526

n = 2.94926166417121

n = 3

So, the answer is 3 years

3 0
2 years ago
The use of simulation to create an aggregate plan:
12345 [234]

Answer:

Answer is option b i.e. will produce a plan that may not be the best plan.

Explanation:

Simulation is the technique used to create an artificial environment that is similar to the real-life situation to study various problems and how to tackle them. However, it is not the full proof plan which means it is based on certain probability and chances that a certain situation might arise. Many times situations are not as planned and here we cannot solely depend on the solution that we have learned during the simulation process. Therefore, the simulation will provide us with a plan that may or may not be the best plan.

6 0
3 years ago
Project Q has an initial cost of $257,412 and projected cash flows of $123,300 in Year 1 and $180,300 in Year 2. Project R has a
ss7ja [257]

Answer:

b) Accept Project R and reject Project Q

Explanation:

We can use the following method to solve the given problem in the question

We are given

Project Q: Initial Cost = $ 257,412

Projected Cash Flows: Yr 1 : $ 123,300 Yr 2 : $ 180,300

Total Present Value of all the Future Cash Flows using 12.2% as Rate of Return

= 123,300/1.122 + 180,300/(1.122*1.122)

= 109,893 + 143,222

= $ 253,115

Profitability Index = Total Present Values of all Cash Inflows / Initial Investment

= 253,115 / 257142 = 0.98

Since the Initial Investment is greater than the Present Value of Cash Inflows, that is, l Profitability Index < 0 the Project should not be selected.

Project R: Initial Cost = $ 345,000

Projected Cash Flows: Yr 1 : $ 184,500 Yr 2 : $ 230,600

Total Present Value of all the Future Cash Flows using 12.2% as Rate of Return

= 184,500/1.122 + 230,600/(1.122*1.122)

= 164,438.5 + 183,178

= $ 347,616.5

Profitability Index = Total Present Values of all Cash Inflows / Initial Investment

= 347,616.5 / 345,000 = 1.01

Since the Initial Investment is lower that the Present Value of the Cash Inflows, that is, Profitability Index > 0 the Project should be selected.

Accept Project R and Reject Project Q, so option B is the correct answer

8 0
3 years ago
Assume that the international Fisher effect (IFE) holds between the U.S. and the U.K. The U.S. inflation is expected to be 5%, w
Lesechka [4]

Answer:C. Real interest rates expected by British investors are 2 percentage points higher than the real interest rate expected by US investor.

Explanation:

The real interest rate is the market interest rate less the inflation rate.

The inflation rate always reduce the purchasing power of money which is the real measure of the purchasing power of money and not the money face value.

6 0
2 years ago
Scenario: assume that you are a cashier and your manager requires that you immediately enter each sale when it occurs. recently,
soldier1979 [14.2K]
As a cashier it is your responsibility to follow the manager's instruction of entering each sale immediately after it occurs. Now, if the assistant manager told you otherwise, do not follow it because you might miss any sale if it will be entered later. Even if it is lunch hour traffic, this is also a crucial time to not make errors. 
7 0
3 years ago
Read 2 more answers
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