Answer:
a. The project A's expected annual cash flow is $7,000
The project B's expected annual cash flow is $7,600
b. BPC should choose the project b
Explanation:
a. In order to calcualte the project A's expected annual cash flow we would have to make the following calculation:
project A's expected annual cash flow =0.2*$6,250 +0.6 *$7,000+0.2 *$7,750=$7,000
In order to calcualte the project B's expected annual cash flow we would have to make the following calculation:
project B's expected annual cash flow =0.2*$0 +0.6 *$7,000+0.2 *$17,000 =$7,600
b. Becuase Project B's CV is higher , hence Project B has the higher NPV, thus, the firm should accept Project B.
Steven's income elasticity is 0.83
<h3>How to calculate the income elasticity ?</h3>
Income elasticity can be described as the change in the quantity demanded by the change in the income
Steven's income decreased from $1800 to $1200
His trips also decreased from 15 to 10
The Income elasticity can be calculated as follows
= 15 -10/(1800-1200) × 100
= 5/600 × 100
= 0.00833 × 100
= 0.83
Hence the income elasticity is 0.83
Read more on income elasticity here
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Answer:
$ 34
Explanation:
Overhead cost $3,600,000
Factory utilities $820,000
Machine hours $130,000
Overhead cost + Factory utilities/ Machine hours
($3,600,000 + $820,000) = $4,420,000
$4,420,000 /130,000 = $34
direct labor hours per hour= $34
The company overhead rate is $34
The correct answer is A = 110, B= 40, C=20..
<u>Explanation</u>
If A+B-C= 170 and B+C-A=130 ,
=C+A = 130
or, C= 130- A
Again, A+B-C =170
or, A+B =170+C
A+B = 170+130-A ( c=130-A)
A+B = 300-A
2A+B = 300
A+B= 300/2
A+B = 150
A+B-C= 170
A+B = 170+C
150 = 170 +C ( A+B = 150)
or, C = 20..............................(1.)
A+C =130
or,A+ 20= 130 ( A=110).....................(2)
A+B = 150
110+B= 150
B = 150-110
B= 40..........................................(3)
Therefore, A = 110, B= 40, C=20..
Answer:
The employees understood why the decision was made.
Explanation:
An advantage of using employees in the group discussion so they can understand why certain decisions are made.
