Answer:
- Project not acceptable as NPV is negative at -$9,553.10
- Time-adjusted rate of return = 12.41%
Explanation:
The Net Present value works by deducting the cost from the present value of benefits. If this amount is positive then the project is a good one.
= Present value of benefits - Present value of cost
Benefits are $9,000 a year for 10 years. This is constant so is annuity.
Cost is the $50,000 purchase price.
= (9,000 * Present value interest factor of annuity, 10 years, 18%) - 50,000
= (9,000 * 4.4941) - 50,000
= -$9,553.10
Project is not acceptable because NPV is negative.
Time-adjusted rate of return is the Internal Rate of Return which is the return that brings NPV to zero.
Use Excel or a Financial calculator for it(Worksheet attached):
= 12.41%
Answer:
18 units
Explanation:
The computation of the economic order quantity is shown below:
=
=
= 18 units
At 18 units of order size, the total cost would minimize.
It is that level at which the total carrying cost and the total ordering cost is equal.
Total cost = Purchase cost + ordering cost + carrying cost
It is a combination of purchase cost, ordering cost and the carrying cost
1. Management Should formulate business that are favorable to the interest of the society. By doing this its also promoting its own business interest. Cleary a business organization cannot operate within the a sick society.
2. •Products are adulterated. •Political bribery •Illegal gifts • and other illegal incentives.
3. Consumers are generally weak to fight such as negative business activities, particularly among the poor countries. Consumers in the rich countries are more vigilance against business abuses.
4. Management must consider the impact of every business action upon society. It has to consider whether the action is likely to promote the public good, to advance the basic beliefs of our society, to contribute to its stability, strength and harmony
5. •Should you have a partner? •What type of business organization is the best for you? •Laws that may affect you? •How can your professional help you?
6. The profit factor is a vital element of business. The first responsibility of management is to operate at a profit.
7. Consumers tend to purchase more goods at lower price. And will they get more profit because more goods are bought.
<em>-</em><em> </em><em>BRAINLIEST</em><em> answerer</em>
Answer:
The firm's expected rate of return is 9.9%
Explanation:
Please see attachment .
Answer:
Net operating income= $48,500
Explanation:
<u>First, we need to calculate the unitary contribution margin:</u>
Unitary contribution margin= 160,000 / 8,000
unitary contribution margin= $20
<u>Now, the net income for 7,600 units:</u>
Contribution margin= 7,600*20= 152,000
Fixed expenses= (103,500)
Net operating income= $48,500