Answer:
c. NPV will decrease by $1,621.23.
Explanation:
Missing word <em>"Hint: what happens to cash flow when net working capital increases and decreases? a. NPV will not be affected because the $25,000 will all be recouped b. NPV will decrease by $25,000. c. NPV will decrease by $1,621.23. d. NPV will increase by $1,864.41. 19"</em>
Present Value of Net Working Capital investment in Year 5 = $25000 / (1+15%)^5
= -$25,000 / (1+15%)^5
= -$25,000 / 2.01135719
= -$12,429.418
= -$12,429.42
Present Value of Net Working Capital Recovered in Year 6 = $25000 / (1+15%)^6
= $25,000 / (1+15%)^6
= $25,000 / 2.31306077
= $10,808.1899
= $10,808.19
Effect on the project's net present value = Present Value of Net Working Capital investment in Year 5 + Present Value of Net Working Capital Recovered in Year 6
= -$12,429.42 + $10,808.19
= -$1,621.23
Therefore, NPV will decrease by $1,621.23.
Answer:
Economic risks - there have been foreign exchange rate fluctuations.
Foreign exchange rate fluctuations are an economic risk, and they can represent a significant risk for many companies, for example, for companies that import or export goods.
Natural disasters - flash floods have damaged all machinery in the main manufacturing unit
Flash floods occur when a lot of rain falls in a very short period of time. They are a type of natural disaster.
Right product risk - the finance team has misjudged the requirement of the business plan and chosen a wrong line of credit
In this case, the company experienced the risk of choosing the right product or not, with the adverse effect that it did not choose it.
Operations risk - the business plan has failed
The goal of a business operation is to carry out the business plan, if the daily operations of the business fail to fulfill the business plan, then, the company has incurred in operations risk.
Answer:
Answer: The net operating income used in contribution approach the first quarter is 171600
Explanation:
Description Amount Amount
Sales 960000
Variable expenses:
Cost of good sold 670000
Variable selling 80000
(5 per book*16000 books)
Variable administrative 38400
(960000*4%)
Total variables expenses 788400
contribution margin 171600
working note:
unit sales=960000/60 per book=16000 book
<span>Jack Welch coined the term boundaryless organization to describe his idea of what he wanted GE to become. He wanted to eliminate vertical and horizontal boundaries within GE and break down external barriers between the company and its customers and suppliers.</span>
Answer:
The economist's analysis in this case incorporates the idea of:
A. opportunity costs among alternatives, which is $75 here.
Explanation:
Jack's economist friend is right that Jack lost $75, which represents a 3% return on the $2,500 if Jack had invested it in a bank deposit instead of baseball card. The opportunity cost is, therefore, this potential benefit which Jack has missed or lost because of Jack's choice of investment.