Answer:
net present value = $1,420.14
Explanation:
given data
start up costs = $25,000
cost of capital = 12%
present value of the cash flows = $26,420.14
solution
we get here net present value will be express as here
net present value = present value of the cash flows for the first three years - start up costs ........................1
put here value and we get
net present value = $26,420.14 - $25,000
net present value = $1,420.14
Answer:
The option there are both monetary and non-monetary considerations that must be taken into account, is the best option that characterizes the factors involved in a cost-benefit analysis.
please follow je
Answer:
a)
P₀ = Div₁ / (Re - g)
- P₀ = current stock price = ?
- Div₁ = next dividend = $8
- Re = equity cost = 10%
- g = constant growth rate = 5%
P₀ = $8 / (10% - 5%) = $8 / 5% = $160
b)
EPS = $12
Return on equity (ROE) = g / b
b = retention rate = 1 - payout ratio = 1 - ($8/$12) = 0.333
g = 5%
ROE = 5% / 0.333 = 15%
c)
Present value of growth opportunity (PVGO) = P₀ - EPS/Re
- P₀ = $160
- EPS = $12
- Re = 10%
PVGO = $160 - $12/10% = $160 - $120 = $40 per share
Marketing is not one of the 10 strategic decisions.
But the 10 strategic decisions are-
design of goods and services
managing quality
process strategy
location strategies
layout strategies
human resources
supply-chain management
inventory management
scheduling
maintenance
Karla would pick option (B) uses hand labor with fixed costs of $10,000 and variable costs of $.5/candle.
<h3>
What is manufacturing?</h3>
- Manufacturing is the process of creating or producing items using equipment, labor, machines, tools, and chemical or biological processing or formulation.
- It is the essence of the economy's secondary sector.
- The phrase can relate to a wide range of human activities, from handcraft to high-tech, but it is most usually applied to industrial design, which involves the transformation of raw materials from the primary sector into finished commodities on a big scale.
To find which option will Karla pick:
- If the demand for Karla's candles is 25,000.
- Total Cost in Machine A = 25000 + 0.1*25000
- = $ 27500 Total
Therefore, Karla would pick option (B) uses hand labor with fixed costs of $10,000 and variable costs of $.5/candle.
Know more about manufacturing here:
brainly.com/question/26320301
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The correct question is given below:
Karla's candle factory is considering two different manufacturing options.
Option A is highly automated with fixed costs of $25,000 and variable costs of $.1/candle.
Option B uses hand labor with fixed costs of $10,000 and variable costs of $.5/candle.
If the demand for Karla's candles is 25,000, which option should she pick?
