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MakcuM [25]
3 years ago
5

If an investment is producing a return that is equal to the required return, the investment's net present value will be:

Business
1 answer:
harina [27]3 years ago
4 0
The net present value would be zero.

Hope this helped! :)
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The Talbot Company uses electrical assemblies to produce an array of small appliances. One of its high cost / high volume assemb
Pani-rosa [81]

Answer:

160

Explanation:

Reorder point is the inventory level at which new order are placed to prevent a down time due to stock out and and holding cost are also at the minimal level .

<u>Workings</u>

Annual demand = 8000

Ordering cost = $50

Holding cost = $20

Operating days = 250

Lead time =5 days

Re order point = Average daily usage * Average lead time

Average daily usage = 8000/250 = 32

Reorder point = 32*5 =160

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Two acquaintances have approached you about investing in business activities in which each is involved. Simone is seeking $605,
BARSIC [14]

Answer and Explanation:

The computation is shown below:

Return on investment = income ÷ investment

For Simone

= $54 ÷ $605

= 8.93%

For Riley

= $57 ÷ $650

= 8.77%  

As it can be seen that simone contains the return on investment so the simone would be preferred

Also, the other factor that should be considered before doing any kind of investment i.e. risk

6 0
3 years ago
Why can the distinction between fixed costs and variable costs be made in the short run? Classify the following as fixed or vari
Vedmedyk [2.9K]

Answer:

Variable costs are costs that vary with production. If production rises, the variable cost rises.

Fixed cost are costs that do not vary with production.

The time frame and contracts allows for distinction between fixed and variable cost in the short run.

in the short run, some costs of production cannot be changed for various reasons. Some of the reasons include, supply contract and Labour laws. Due to labour contracts, it might be difficult if not impossible to change wages paid to workers or fire workers. This makes wages fixed in the short run.

Some costs can be varied easily, for example if sales are low, shipping cost would reduce because the amount of orders are smaller.

, nd

Fixed costs include:

advertising expenditures

interest on company-issued bonds

payments for raw materials

Real estate tax

Executive salary

insurance premiums

wage payments

depreciation and obsolescence charges

rental payments on leased office machinery

Variable costs include :

fuel

shipping charges

sales taxes

All costs are variable in the long run because in the long run production decisions which appeared fixed can be changed. For example, Labour contract can end and the firm can decide to adjust or retain the contract in line with the current economic situation. The firm can decide to move to a cheaper location and reduce rental cost.

Explanation:

7 0
3 years ago
Brent received a report from the production and purchasing departments with the following values for August: Actual materials qu
OLga [1]

Answer:

Material quantity variance

= (Standard quantity -  Actual quantity) x Standard price

After the adjustment for missing order

Material quantity variance

= (1.25 x 5,000 - 6,200) x $1.50

=  $ 75( F)

The correct answer is A

Explanation:

Material quantity variance is the difference between standard quantity and actual quantity used multiplied by standard price. Standard quantity is standard quantity per unit multiplied by units made. Since the units made are now 5,000 units. Standard quantity will be 1.25 multiplied by 5,000 units.

8 0
4 years ago
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