Answer:
Payback is 5 years. The company should purchase the plant as payback occurs before the replacement date.
Explanation:
If a project has equal annual cash-flows, the payback period can be calculated using the formula:
As such:
McAlister Products, will consider this machine profitable, and worth investing in if payback occurs before the investment's replacement date. In other words, the company should purchase this plant if payback period is less than 7 years. From the calculation above, payback period is 5 years which is less than 7 years. The company should thus purchase this plant.
Answer:
Short-term creditors are most interested in liquidity ratios because they provide the best information on the cash flow of a company and measure its ability to pay its current liabilities or the money a company owes to its creditors.
Answer: Shipper A with 100.50 rate per day
Explanation: To find the best shipping option, we have to calculate the average cost per shipper.
Shipper A: Shipper B:
2-day rate = $526 2-day rate = $532
3-day rate = $470 4-day rate = $459
9-day rate=$411 7-day rate = $412
Average rate per day Average rate per day
= 526+470+411 =532+459+412
=1407/14days =1403/13days
=100.50 =107.92
From the above calculation, holding cost for shipper A= 100.50*0.34=34.17 while holding cost for shipper B= 107.92*0.34 = 36.69
From the above calculation shipper A will be preferred as it has the lowest price per unit and holding cost.
Answer:
selection
Explanation:
SELECTION is the term that refers to the process of choosing from a group of qualified applicants the individual best suited for a particular position.
Alot of profit will be gonna to a empty place