Answer:
(NPV) Net present value method is the most effective capital budgeting method
Explanation:
we know here
initial after minus tax cost = $5,000,000
after minus tax cash flows in 1st year = $1,800,000
and in 2nd year = $2,900,000
and in 3rd year = $2,700,000
and 4th year is = $2,300,000
so here cash outflows even after the initial outlay in year 0
so we not use here IRR
so that best and most most effective capital budgeting method is NPV net present value
we use it NPV
Answer:
The present value for eliminating this cost will be of $1,130,434.78
Explanation:
we solve for the present value of a perpetual annuity as this cost goes forever unless we change into electronically afterwich; they disappear entirely.
Answer:
CCC's new required return be 16.5%
Explanation:
For computing the new required return, first, we have to compute the risk-free rate of return which is shown below:
Expected return = Risk- free rate of return + Beta × (Market risk - Risk- free rate of return)
12% = Risk- free rate of return + 1.5 × (10% - Risk- free rate of return))
12% = Risk- free rate of return + 15% - 1.5% Risk- free rate of return
So, the Risk- free rate of return is 6%
Now the average stock is increased by 30%
So, the new market risk is 13% and other things will remain constant
So, the new required return equal to
= 6% + 1.5 × (13% - 6%)
= 6% + 1.5 × 7
= 16.5%
Answer:
.A) $1, 920,000
Explanation:
Gross domestic product is the sum of all final goods and services produced in an economy within a given period which is usually a year.
Nominal GDP is the GDP of country using current year prices
Nominal GDP = current year price × quantity
(6000 × 320) = $1,920,000
I hope my answer helps you
The impact on the order of the quantity will be able to get a 40% higher. It is because if the mickey and mouse cat food factory runs the marketing campaign to the delight order surge twice to their previous level and their operation manager uses the EOQ or the Economic Order Quantity, it is able to minimize the ordering cost and the total of the holding costs, producing an order quantity of 40% higher.
