Answer:
41.28 million
Explanation:
the net present value of the two alternatives needs to be determined. The appropriate alternative would be the plane with the higher NPV
Net present value is the present value of after-tax cash flows from an investment less the amount invested.
NPV can be calculated using a financial calculator
Alternative 1
Cash flow in year 0 = $-100 million
Cash flow each year from year 1 to 5 = $28 million
I = 9%
NPV = $8.91 million
Alternative 2
Cash flow in year 0 = $-132 million
Cash flow each year from year 1 to 10 = $27 million
I = 9%
NPV = $41.28 million
The second alternative has the higher NPV and it would increase the value of the company by $41.28 million if accepted
To find the NPV using a financial calculator:
1. Input the cash flow values by pressing the CF button. After inputting the value, press enter and the arrow facing a downward direction.
2. after inputting all the cash flows, press the NPV button, input the value for I, press enter and the arrow facing a downward direction.
3. Press compute
Answer:
Expected NPV=$666.67
Explanation:
Initial Cost=$100
NPV in case cash inflow is $5=-100+5/1%=$400
NPV in case cash inflow is $8=-100+8/1%=$700
NPV in case cash inflow is $10=-100+10/1%=$900
Expected NPV=(1/3)*400+(1/3)*700+(1/3)*900=$666.67
Answer:
6.30%
Explanation:
Calculation to determine what The simple rate of return on the investment is closest to
Using this formula
Simple rate of return= Annual net profit / net investment
Let plug in the formula
Simple rate of return= (138,500-89,300)/(803,700-22,300)
Simple rate of return= 49,200/781,400
Simple rate of return= 6.30%
Therefore The simple rate of return on the investment is closest to 6.30%
Answer:
the sale of tangible goods
Explanation:
Article 2 is applied for the contract that made for selling the goods. the goods that are identifed at the time when the contract is created and could be moved. It mainly deals with the tangible things like computers, cars, pens, etc
The intellectual property and intangible should not be cover in this
Therefore the above should be considered
Market circumstances that make a focused low-cost or focused differentiation strategy attractive are characterized by:
a. an industry has few or no segments and market niches, thereby precluding the choice of an attractive niche suited to a company's resource strengths and capabilities.
b. high costs or increased difficulty for multisegment rivals to meet the specialized needs of the target market niche and at the same time satisfy the expectations of their mainstream customers.
c. Intense competition from industry leaders in the niche or focused segment.
d. a target market niche that is too small to be profitable and offers low growth potential.
e. few, if any, rivals are attempting to specialize in the same target segment.
<u>Explanation</u>:
Since the question was incomplete before, we find the answer by matching it to the question;
In Market circumstances that make a <u>focused low-cost or focused differentiation strategy</u> attractive are characterized by An industry that has few or no segments and market niches, thereby precluding the choice of an attractive niche suited to a company's resource strengths and capabilities.
