Answer:
Explanation:
Competitive advantages are those factor that put a manufacturer in a better position over rivals in the market and gives her the benefit of higher pricing and brand loyalty.
In this scenario , the competitive advantage that Heartsong has in the industry is her world wide reputation as a provider of choice for high-quality leading -edge artificial heart valves.
However, she has fund limitation to enhance research and development , larger production and maintain additional inventory as demanded by the market . The sales on account pattern as vendors are not paid immediately and short lead time for ordering due to the nature of the heart valve was not helping the situation.
The outsourcing arrangement to Edfex will ease the stress on delivery as it has hightech warehouses in most major population centers around the country. The focus will now be on research and development and increased production capacity.
The 2-year discount factor is 0.92. The present value of $1 to be received in year 2 is $ 0.92.
Given :
Amount receivable is $ 1.00
2 year discount factor is 0.92
Present value 1*0.92 = $ 0.92
The process of raising money or capital for any form of spending is referred to as finance. It involves directing different sources of funding, such as credit, loans, and investment money, to the businesses that can use them most effectively.
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Answer:
Cost-volume-profit [CVP] Analysis
The cost-volume-profit analysis model assumes that the total fixed cost, the variable cost per unit, and the selling price per unit remain constant within the relevant range.
It is very difficult for a company to remain in the relevant range, where the assumptions will be obtained. Market forces, including the dynamics of competition change the underlying assumptions. For example, a company may become more efficient in its operations, thereby reducing its variable cost per unit. The total fixed cost may also change when the company increases its activity levels.
However, these limitations do not make the model less useful. It can be relied on to make short-run profit and pricing decisions.
Explanation:
The management of a business finds the CVP model useful in making important management decisions, especially decisions that relate to budgeting of production and sales, cost control, and profit planning. Management uses the CVP model to determine the break-even point in both units and sales dollars. Overall, management relies on the model to select its competitive products.
The formula for finding the net present value is -C0 + [C1 / (1 + r)] + [C1 / (1 + r)²] + [C1 / (1 + r)³].
<h3>What is the net present value?</h3>
The net present value is a capital budgeting method. Net present value is the present value of after-tax cash flows from an investment less the amount invested.
Only projects with a positive net present value should be accepted. A project with a negative net present value should not be chosen because it isn't profitable. When choosing between positive net present value projects, choose the project with the highest net present value first because it is the most profitable.
An advantage of the net present value method of capital budgeting is that it considers the times value of money. A disadvantage of net present value is that it is difficult to estimate the accurate discount rate.
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