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malfutka [58]
3 years ago
9

Dip N’ Dunk Doughnuts has computed the net present value for capital expenditure at two locations. Relevant data related to the

computation are as follows: Fort Collins Boulder Total present value of net cash flow $607,600 $624,000 Amount to be invested (620,000) (600,000) Net present value $(12,400) $ 24,000 a. Determine the present value index for each proposal. Round your answer for the present value index to two decimal places. Fort Collins Boulder Total present value of net cash flow $ $ Amount to be invested $ $ Present value index b. Which location does your analysis support?
Business
1 answer:
Leviafan [203]3 years ago
4 0

Answer:

The correct answer for option (a)  0.98 and 1.04 and for option (b) is Boulder Location.

Explanation:

According to the scenario, computation of the given data are as follows:

A). We can calculate the present value index by using following formula:

Present value index = Total present value of net cash flow ÷ Amount to be invested  

Present value index Ft. Collins = 607,600 ÷ 620,000  = 0.98

Present value index Boulder = $624,000 ÷ $600,000  = 1.04

Fort Collins has 0.98 present value index and boulder has 1.04 present value index.

B). Boulder location should be chosen according to the analysis. Because boulder has the 1.04  present value index which is greater than 1 while fort Collins has value less than 1.

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Multi-market competition occurs when two or more diversified firms:
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Answer:

The correct answer is letter "D": simultaneously compete against each other in the same product areas geographic markets.

Explanation:

Multi-market competition happens when companies offering a similar product make contact in multiple markets. The level o competition shapes according to the region where the goods or services are being offered and in different markets, different consumers decide which company is taken as the preferred.

Though, the constant contact of competitors in different regions could decrease their competition since they might use their mutual help in adverse areas to be able to conduct their businesses.

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3 years ago
You have been asked by management to explain the variances in costs under your inpatient capitated contract. The following data
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Find the given attachment

7 0
3 years ago
Hot Wings, Inc., has an odd dividend policy. The company has just paid a dividend of $8.50 per share and has announced that it w
Vadim26 [7]

Answer:

The correct answer is $65.90 (approx.)

Explanation:

According to the scenario, computation of the given data are as follows:

Dividend paid = $8.50

Increase dividend = $6.50 per year

Require return = 16%

We can calculate the current share price by using following method:

=[($8.5 + $6.5) ÷ (1 + 16%)^1] + [($8.5 + $6.5 + $6.5) ÷ ( 1 + 16%)^2] +[($8.5 + $6.5 + $6.5 + $6.5) ÷ (1+16%)^3] + [($8.5 + $6.5+ $6.5 + $6.5 + $6.5) ÷ (1+16%)^4

= $15 ÷ 1.16 + $21.5 ÷ 1.16^2 + 28 ÷ 1.16^3 + 34.5 ÷ 1.16^4

= $65.90 (approx.)

3 0
3 years ago
An expansion is: a period in which the economy is growing at a rate significantly below normal. a period in which the economy is
Over [174]

Answer:

A period in which the economy is growing at a rate significantly above normal.

Explanation:

The economy experiences relatively fast growth during the expansion process, interest rates continue to be small, output rises and inflationary pressures are building up. Once the economy reaches a low point, the cycle peak is reached, and development starts to recover.

Expansion is sometimes described as the first step in the business cycle, but this is an arbitrary point of departure, here the economy has a constant stream in the supply of capital, and the investment booms.

8 0
3 years ago
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A company began its operations on April 1 of the current year. Budgeted sales for the first three months of business are $250,00
Mariana [72]

Answer:

Total cash collection May= $306,000

Explanation:

Giving the following information:

Sales:

April= $250,000

May= $320,000

June= $410,0000

The company expects to sell 50% of its merchandise for cash. Of sales on account, 60% are expected to be collected in the month of the sale, 40% in the month following the sale.

<u>Cash collection May:</u>

Sales on cash May= 320,000*0.5= 160,000

Sales on Account May= (160,000*0.6)= 96,000

Sales on Account April= (250,000*0.5)*0.4= 50,000

Total cash collection May= $306,000

8 0
3 years ago
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