All categories

3 years ago

Two mutually exclusive alternatives are being considered.

Business

1 answer:

BaLLatris [955]3 years ago

3 0

Answer:

The correct answer is option B PW = - $50 + 8 (P/A, 0.08, 10)

Explanation:

Recall that

The initial cost for Alternative A is $100 and a uniform annual benefit of $19.93

The initial cost for Alternative B is $50 and a uniform annual benefit of $11.93

The two alternatives has a useful life of 10 years

Now, we will show the rate return analysis given below

Alternative -A Alternative -B A-B

The First cost $100 $50 $50

The annual benefit $19.93 $11.93 $8.93

The Expected life 10 years 10 years 10 years

Thus the increment rate will be computed as,

PW = -P + A (P/A, i, n) ...This is the equation (1)

now,

P = is the first cost

n= The rime period

A= Annual benefit

I = the interest rate

Thus,

We substitute this values into the equation 1 stated

Which is,

PW = - $50 + 8 (P/A, 0.08, 10)

Therefore PW = - $50 + 8 (P/A, 0.08, 10) this will solve for the IRR correction based on Rate of Return Analysis.

You might be interested in

Rasmussen Corporation expects to incur indirect overhead costs of $80,000 per month and direct manufacturing costs of $12 per un

vovikov84 [41]

Answer:

Instructions are listed below.

Explanation:

Giving the following information:

Rasmussen Corporation expects to incur indirect overhead costs of $80,000 per month and direct manufacturing costs of $12 per unit. The expected production activity for the first four months of 2017 is as follows: January February March April Estimated production in units 6,000 7,000 3,000 4,000

Estimated manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base

January:

Estimated manufacturing overhead rate= (80,000/6,000)+12= 25.33 per unit

February:

Estimated manufacturing overhead rate= $23.43

March:

Estimated manufacturing overhead rate= 38.67

April:

Estimated manufacturing overhead rate= $32

Allocated MOH= Estimated manufacturing overhead rate* Actual amount of allocation base

January= 6,000*25.33= $151,980

February= 7,000*23.43= $164,010

March= 3,000*38.67= 116,010

April= 4,000*32= $128,000

8 0

3 years ago

Consider the following information: Rate of Return If State OccursState ofProbability ofEconomyState of EconomyStock AStock BSto

grigory [225]

Answer:

Expected Return Boom = 0.29(0.353) + 0.42(0.453) + 0.29(0.333)

Expected Return Boom = 0.3892

Expected Return Boom = 38.92%

Expected Return Good= 0.29(0.123) + 0.42(0.103) + 0.29(0.173)

Expected Return Good = 0.1291

Expected Return Good = 12.91%

Expected Return Poor = 0.29(0.013) + 0.42(0.023) + 0.29(-0.053)

Expected Return Poor = - 0.00194

Expected Return Poor = - 0.194%

Expected Return Bust = 0.29(-0.113) + 0.42(-0.253) + 0.29(-0.093)

Expected Return Bust= - 0.166

Expected Return Bust= - 16.6%

a. Expected return portfolio = 0.3892*0.18 + 0.1291*0.42 + 0.32*- 0.00194 + 0.08*- 0.166

Expected return portfolio = 0.1104

Expected return portfolio = 11.04%

b. Variance = 0.18*(0.3892-0.1104)^2 + 0.42*(0.1291-0.1104)^2 + 0.32*(- 0.00194-0.1104)^2 + 0.08*(- 0.166-0.1104)^2

Variance = 0.02429

c. Standard Deviation = (0.02429)^(0.5)

Standard Deviation = 0.1558

Standard Deviation = 15.58%

3 0

3 years ago

Help ASAP

Amiraneli [1.4K]

Using the "Thinking at Margin" methodology, the relevant statement for a television maker to consider while making a choice is as follows: the average cost of ten TVs is one hundred dollars apiece. Option C. This will be discussed in further detail below.

<h3>What exactly does "Thinking at Margin" entail?</h3>

In most cases, it means giving some consideration to the action that will come next in your plan. The word "marginal" may also be used to signify "additional." The first glass of lemonade you drink on a hot day will quench your thirst, but successive glasses may not have the same impact on you.

When you contemplate at the margin, you are considering what the next or succeeding action will mean for you on an individual level.

In conclusion, using the "Thinking at Margin" technique, the following are the essential points for a television producer to take into consideration before making a decision when it comes to television programming: The usual cost of creating ten televisions is one thousand dollars each. Alternative C

Learn more about Thinking at the Margins by visiting this link: brainly.com/question/4468044 #SPJ1

3 0

1 year ago

- 65. When you compare brands, you should consider price and advertising.<br> a. True<br> b. False

Ivan

Answer:

I would say A.

Explanation:

3 0

3 years ago

Read 2 more answers

Aden is a small engine mechanic who earns a regular hourly rate of $15.68. For overtime, he earns time and a half on Saturdays a

Snowcat [4.5K]

Answer:

$1,034.88

Explanation:

Aden total pay will be

regular hours worked x regular pay

=40 hrs x $15.68

=$627.2

Overtime hours

Saturday rate :$15.68 x 1.5 =$23.52

Hours worked on Saturday= 8 hrs

Saturday pay = $15.68 x 8

=$188.16

Sunday rate : $15.68 x 2= $31.36

Hours worked on Sunday = 7

Sunday pay = $31.36 x 7

=$219.

Total pay =$627.2 + $188.16 +$219.52

=$1,034.88

3 0

3 years ago