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I am Lyosha [343]
3 years ago
14

A factory costs $400,000. It will produce an inflow after operating costs of $100 000 in year 1. $ 200,000 in year 2, and $ 300,

000 in year 3. The opportunity cost of capital is 12%. Calculate NPV.
Business
1 answer:
Delvig [45]3 years ago
3 0

Answer:

NPV = $62,258.56

Explanation:

initial outlay year 0 = $400,000

cash inflow year 1 = $100,000

cash inflow year 2 = $200,000

cash inflow year 3 = $300,000

discount rate = 12%

using a financial calculator, NPV = $62,258.56

if you do it by hand:

NPV = -$400,000 + $100,000/1.12 + $200,000/1.12² + $300,000/1.12³ = -$400,000 + $89,285.71 + $159,438.78 + $213,534.07 = $62,258.56

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Answer:

a. What is the MRP per driver per day?

  • the marginal revenue product per driver = 60 packages x $20 = $1,200 per day

b. Now suppose that a union forces the company to place a supervisor in each vehicle at a cost of $300 per supervisor per day. The presence of the supervisor causes the number of packages delivered per vehicle per day to rise to 60  packages per day What is the MRP per supervisor per day? By how much per vehicle per day do firm profits fall after supervisors are introduced?

  • if the drivers were already delivering 60 packages per day without the supervisor, then the addition of the supervisor doesn't change anything. So the MRP of the supervisor is $0. That means that the company's profits will decrease by $300 per day due to the supervisors.

c. How many packages per day would each vehicle have to deliver in order to maintain the firm's profit per vehicle after supervisors are introduced?

  • $300 / 20 = 15 packages per day
  • in order to maintain the profit per vehicle, each team of delivery man + supervisor should be able to deliver 75 packages per day.

d. Suppose that the number of packages delivered per day cannot be increased but that the price per deliver might potentially be raised. What price would the firm have to charge for each delivery in order to maintain the firm's profit per  vehicle after supervisors are introduced?

  • $300 / 60 = $5
  • the price of each package delivered should increase by $5 to $25 per package.
6 0
3 years ago
For a 13-person team, how many extra workers should be hired to meet the labor hours needed without overtime
Paha777 [63]

For a 13-person team, The number of extra workers that should be hired to meet the labor hours needed without overtime is 7.

<h3>What is Labor hours?</h3>

This is a term that connote the total hours of workers that are said to be having or getting an hourly wage and they are the ones who are said to be directly employed on the site of a building, public works project, etc.

Note that "Labor hours" is one that entails hours of work that has been carried out  by workers who have been employed by the general contractor or the subcontractors  that are found to be working on the project.

Learn more about labor hours from

brainly.com/question/24868261

8 0
2 years ago
The higher the degree of financial leverage employed by a firm is, the: A. Higher is the number of outstanding shares of stock.
horsena [70]

Answer:

Option B,

The higher the degree of financial leverage employed by a firm, THE HIGHER THE PROBABILITY THAT THE FIRM WILL ENCOUNTER FINANCIAL DISTRESS.

Explanation:

The degree of financial leverage (DFL) is a leverage ratio that measures the sensitivity of a company's earnings per share to fluctuations in it's operating income, as a result of changes in its capital structure.

This ratio indicates that the higher the degree of financial leverage, the more volatile earnings will be.

The use of financial leverage varies greatly by industry and by the business sector. There are many industry sectors in which companies operate with a high degree of financial leverage (examples are retail stores, grocery store, banking institutions, airlines...). Unfortunately, the excessive use of financial leverage by many companies in this sector has played a major role in forcing a lot of them to file for bankruptcy.

Therefore, if the degree of financial leverage employed by a firm is high, then the probability that the firm will encounter financial distress will also be high.

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3 years ago
Carlos is taking a class to learn presentation skills. Which type of communication is he using when he improves his PowerPoint s
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visual ,i like your profile add my sn a p,joel.ewc123

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3 years ago
In a business-to-business transaction, the seller offers the buyer a 2 percent discount for paying a bill early. Assuming the us
chubhunter [2.5K]

Assuming the user took advantage of this offer, the amount that would be discounted on a $10,000 invoice is: $200.

<h3>Discounted amount </h3>

Using this formula

Discounted amount =Discount rate× Invoice

Let plug in the formula

Discounted amount=2%×$10,000

Discounted amount=$200

Therefore assuming the user took advantage of this offer, the amount that would be discounted on a $10,000 invoice is: $200.

Learn more about Discounted amount  here:brainly.com/question/12965533

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