Answer:
B. 2.8 years
Explanation:
Initial investment = -120,000+ 8,000 = -112,000
Yr 1 cash inflow = 40,000, hence net CF = 40,000-112,000 = -72,000
Yr 2 cash inflow = 40,000, hence net CF = 40,000- 72,000 = -32,000
Yr 3 cash inflow = 40,000, hence net CF = 40,000-32,000 = 12,000
Payback period = last year with negative net CF + (absolute net CF that year/ total CF the following year)
= 2 + (32,000/40,000)
= 2 + 0.8
= 2.8 years
A withholding you might see on your pay stub can include a retirement savings or a health insurance payment.
Answer:
-The technology that is available for the market.
- The nature of the products
Explanation:
Latest technology often able to produce larger amount of products with significantly lower time. This will help reduce the overall cost of production in the long run. Business owner need to consider this and calculate whether the initial investment that needed to be made to install the technology will worth the value in the long run.
Nature of the products consisted of all the characteristics that our products process. For example food products tend to not have a long shelf life unlike fashion product. This difference in characteristics influence the type of production method that business owners could implement.
For example, It is impossible for business owners to mass produce produce food products with the expectation that it can maintain their quality in the warehouse, but producer of fashion products could make that expectation.
Answer:
The answer is False. By cutting the variance of the demand during lead time to 1/2 its original value while maintaining the same lead times, the new safety stock will also drop to 1/2 its original value.
Explanation:
Safety stock is a form of inventory management that provides an additional unit of an item held as a buffer i order to mitigate risk of running out of stock.
A reorder point provides a buffer of time to restock items when stock is running out. It helps to reduce operational costs and chaos that may arise such as rush fees owed to suppliers. It makes the use of a warehouse space more efficient.
Suppose we are a distributor that uses safety stock and a reorder point for inventory management. If we can find a more consistent manufacturer that will maintain the same mean lead times while cutting the variance of the demand during lead time to 1/2 its original value, the new safety stock that we need to carry to achieve the same service level will also drop to 1/2 its original value.
