1) Based on the video, which type of

Casey Nelson is a divisional manager for Pigeon Company. His annual pay raises are largely determined by his division’s return o

baherus [9]

Answer:

NPV: $180,285.49

IRR: 21.336%

simple rate of return: 72.13%

Explanation:

6,100,000 investment

contribution margin 3,000,000

fixed expense: 900,000

EBITA 2,100,000

We will calculate the NPV without the depreciation, as the depreciation is the distribution of the investment cost over the project life.

If we include the depreciation we will be counting the investment amount twice. Entirely at Time 0 and then subtracting on each cash inflow.

We will calculate the NPV at 20% as is the company's discount rate. Even if the current division returns are in 24% as the company accepts project which yields 20%.

$C \times \frac{1-(1+r)^{-time} }{rate} = PV\\$

C 2,100,000

time 5 years

rate 20% = 20/100 = 0.2

$2100000 \times \frac{1-(1+0.2)^{-5} }{0.2} = PV\\$

PV $6,280,285.49

NPV = PV of cash inflow - investment

6,280,285.49 - 6,100,000 = 180,285.49

the IRR:

The internal rate of return is the rate at which the NPV of a priject is zero.

We calculate this using excel formula IRR

or a financial calculator

it could also be done with trial and error using the PV tables.

I will explain you in Excel

FIrst, you write the inflow and outflow per year:

-6,100,000

2,100,000

then we write on another cell:

=IRR(

then, select the cells

and press enter

21.336%

the simple rate of return:

(total return - investment) / investment

(2,100,000 x 5 - 6,100,000) / 6,100,000 =

4,400,000 / 6,100,000 = 0.721311475 = 72.13%

7 0

3 years ago

OKRs can be executed in stages. The first stage would be keyed to a deadline and then then once the project is completed and run

DerKrebs [107]

Answer:

b) false

Explanation:

OKR is a goal-setting method used by companies. It is impleemented using following steps

Communicate the OKR
Choose a tool used for OKR
Organize the Company's OKR
Set the company's OKR
Set every single OKR for teams, departments and Individuals
Make the changes in OKR if required
Approve the OKR
Evaluate the OKR at each period end.

So, the OKR cannot be implemented in a single step and it requires multiple steps.

Hence the given statement is false.

4 0

3 years ago

Consider a competitive market with a large number of identical firms. The firms in this market do not use any resources that are

lakkis [162]

Answer:

a. increase price in the short run but not in the long run.

Explanation:

A perfectly competitive market is one in which firms in an economy produce similar goods, and use resources that are limited in quantity.

An increase in demand will result in a corresponding increase in price, and results in firms making high profits. In the diagram below it results in a shift of demand from D1 to D2.

In the long run as firms have low barrier to entry more firms enter the market and supply shifts from S1 to S2. There is reduction in prices and profits start to fall. This is illustrated in the second diagram.

8 0

3 years ago

What are some of the key components that are listed on a check in the current day?

stepladder [879]

Checks have several vital pieces of information, including

routing number
account number
check number
payee
payor
amount (in numbers)
amount in writing
payor signature
whatever security features the bank includes

5 0

3 years ago

Assume that we are back to talking about bags of oranges (a private good), but that the government has decided that tossed orang

ruslelena [56]

Answer:

If negative externalities pop up in a market, the equilibrium is higher than the efficient output.

Thus when it comes to the government rectification regarding the side effects of that commercial , activity, if the amount of bags is (1) then the new equilibrium would be: p*= $17

8 0

3 years ago