Answer:
Discounted payback period = 1.89 years
Explanation:
If Initial cost is $5,200
Year Cash flow Present value Present value Discounted
at 11% Cumulative cash flow
0 -5,200 1 -5,200 -5,200
1 2,800 0.9009 2,523 -2,677
2 3,700 0.811 3,003 326
3 5,100 0.73126 3,729 4,055
4 4,300 0.6587 2,833 6,887
Discounted payback period = 1 + (2,667/3003)
=1.89 years
Working
PV= (1+i)^-n
i= 11%, n= respective years 0,1,2,3,4
Answer:
different time horizon
Explanation:
The time horizon is a certain time when a planned event/process expected to be finished. A different department can have different considerations/priorities when making the ideal time horizon. In this case, the marketing team wants the product released faster(in the first quarter) to capture market share as the main consideration. But the production team who responsible for the product quality wants more time to develop the product.
i feel either c or d but d is probably wrong because they would have asked you that at the interview and c could be right because they need your social security for taxes so C
Answer:
14%
Explanation:
required rate of return = risk free rate of return + ( risk premium x beta)
5% + 1.5 x 6% = 14%
Answer:
The answer is d. payment to hire a security worker to guard the gate to the factory around the clock.
Explanation:
Let re-visit to the concept of Fixed cost before applying to the questions.
Fixed costs are costs which are unchanged given changes in production level.
a. payment to a electric utility is not fixed cost because higher level of production required higher electricity consumption which leads to higher cost of electricity.
b. cost of raw material is not fixed cost because the higher the production level, the higher the raw material required for production.
c. wages to hire assembly line workers is not fixed cost because the higher the production level, the more workers required and the higher the wages will be.
d. payment to hire a security worker to guard the gate to the factory around the clock is fixed cost because regardless of the production level, the security worker will work for the same amount of time and receive the same level of payment as his workload is much likely to remain the same.
So, d is the correct choice.
