Based on the amount it would cost to build the machine and the interest rate as well as the payoff, the following are true:
a. The machine will take a year to build which means the payoff will only start coming in next year.
First find the present value of the perpetuity:
= 70 / 5%
= $1,400
You then need to find the present value of the above in the current period:
= 1,400 / ( 1 + 5%)
= $1,333
NPV is:
= 1,333 - 1,000 cost
= $333
B. If the amount produced increases by 1%, you should use the Gordon Growth Model:
<em>= Next payoff / ( Interest - Growth)</em>
=70/ ( 5% - 1%)
= $1,750
Take this to current year:
= 1,750 / 1.05
= $1,667
NPV will be:
= 1,667 - 1,000
= $667
Find out more about NPV at brainly.com/question/7254007.
Answer:Queuing, Favoring customers, and ration coupons
Explanation: Price ceiling is a price control mechanism used by Government and price regulators to control the market price of a product or services, price ceiling is the price of a product above which no manufacturing company or marketer is expected to sell any Product.
Rationing methods are methods used to control the sale or availability of the product to the consumer.
Queuing is rationing method which is based on the first come first serve, everyone is served According to the time he or she comes or signify interest.
Favouring Customers is.anotjer rationing technique it gives certain Customers some prevelegd based on some conditions.
Ration coupon is used to specify which Quantity can be issued to a customer at a given time.
Answer: The correct answer is Worker’s Compensation.
Explanation: Worker’s Compensation is a type of insurance that employers are required by law to carry for its employees. This insurance covers the employees for work related injuries or illness. The insurance will pay the employees for lost wages, and in some cases, pain and suffering or loss of future earnings.
Answer:
Explanation:
Required return = (dividend / price per share) + constant growth rate.
Dividend yield on the stock = (dividend / price per share) = 5.5%
Therefore, Required return = 5.5% + 4.2% = 9.7%
Answer: a) resources and relationships
Explanation:
Strength for any firm according to analysis is considered as the resources existence that help in functioning of organizational process and organizational relationship for strong and reliable customer base.It helps in innovation, improvement and strengthening firm against competition companies.
Other options are incorrect because product, consumer,capital, partnership and patents are not the factors that majorly impact strength of the organization.Thus, the correct option is option(a).
