Answer:
Giancarlo’s initial investment in the Suzuki XL7 is $17,122
Explanation:
The computation of the initial investment is shown below:
= Negotiated price of new Suzuki + Taxes and fees charges on purchase of a new car - proceeds from the old car
= $24,675 + $1,732 - $9,285
= $17,122
The estimated value of the old, new car and the annual repair cost is not relevant for computing the initial investment. Hence, we ignore it and not considered this cost.
Answer:
Present Value (PV) of cash flows are as follows.
(i) Discount rate = 0%
= - 1
Since PV < 0, the project should not be undertaken.
(ii) Discount rate = 2%
= 156
Since PV > 0, the project should be undertaken.
(iii) Discount rate = 5%
= 772
Since PV > 0, the project should be undertaken.
(ii) Discount rate = 10%
= - 351
Since PV < 0, the project should not be undertaken.
Answer:
d. The price will decrease, because dry beans and rice are inferior goods.
Explanation:
the options are missing, so I looked them up:
a. The price will decrease, because dry beans and rice are normal goods.
b. The price will increase, because dry beans and rice are normal goods.
c. The price will increase, because dry beans and rice are inferior goods.
d. The price will decrease, because dry beans and rice are inferior goods.
Inferior goods are those goods whose quantity demanded decreases as consumer income increases. This happens because inferior goods have several substitute products that cost more, but as consumer income increases, consumers will tend to purchase the more expensive substitute goods instead of the cheaper inferior ones. I.e. as consumer income increases, they will seek to purchase higher quality goods, and inferior goods are generally low quality goods that are mostly purchased by people located at the lower socio-economic classes. Other examples of inferior goods are canned meat, instant noodles and cheap frozen foods.
Since the quantity demanded of inferior goods decreases as the economy improves, the demand curve shifts to the left, which will result in a lower equilibrium price.
One of the huge benefits of just-in-time production is that the need for "time" is eliminated.
<h3>What is just-in-time production?</h3>
With just-in-time (JIT) manufacturing, products are produced as needed, rather than in excess or ahead of schedule.
Some characteristics of just-in-time are-
- With just-in-time (JIT) manufacturing, products are produced as needed, rather than just-in-time (JIT) inventory system is a management strategy that aligns raw-material orders from suppliers directly with production schedules in excess or ahead of schedule.
- Because Toyota, a vehicle manufacturer, introduced just-in-time manufacturing in the 1970s, the practise is often referred to as the Toyota Production System (TPS).
- To prevent work-in-process overcapacity, JIT is frequently used in conjunction with the scheduling technique known as kanban.
- The JIT production method depends on consistent output, excellent craftsmanship, no equipment failures, and trustworthy suppliers for its success.
- The JIT system is also known as short-cycle manufacturing (as used by Motorola) and continuous-flow manufacturing (as used by IBM).
To know more about just-in-time inventory management, here
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