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ira [324]
3 years ago
11

Manufacturing costs from a scraped poor-quality product are $6000 per year. AN investment in an employee training program can re

duce this cost. Program A reduces the cost by 75% and requires an investment of $12,000. Program B reduces the cost by 95% and will cost $20,000. Based on low turnover at the plant, either program should be effective for the next 5 years. If interest is 20%, the present worth of the two programs is nearest what values? (Consider cost reduction a positive cash flow)
Business
1 answer:
romanna [79]3 years ago
8 0

Answer:

We see that Prog A will give an annual CF of 75%*$6000 = $4500

Prog B will give annual CF of 95%*$6000 = $5700

Disc Rate Kd = 20%

So PV of Annuity of $1 for 5 yrs with Kd = 20% is 2.9906

So NPV of Prog A = CF0+CF1+ ....+Cf5 = -12000+2.9906*4500 = $1,458

So NPV of Prog B= CF0+CF1+ ....+Cf5 = -20000+2.9906*5700 = $(2,954)

So Prog A is more effective as it gives a Positive NPV

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"Ramon runs the marketing department at his company. His department gets a budget every year, and every year, he must spend the
miss Akunina [59]

Answer:

Property of additive inverse

Explanation:

Given: Ramon got $2.5 million for the annual marketing budget such that he must spend the budget such that  2,500,000-x=0  

To find: property of addition that help us to know what the value of x must be

Solution:

1 million is equal to 1,000,000

So,

2.5\,\,million=2.5(1,000,000)=2,500,000

According to property of additive inverse,

a+(-a)=0

Given equation is 2,500,000-x=0

This equation can be written as 2,500,000+(-x)=0

So,

x=2,500,000

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3 years ago
Pepsi has a strong brand equity. Over the years, Pepsi has introduced Vanilla Pepsi, Lemon Pepsi, Pepsi One, Pepsi Blue, and Pep
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4 0
2 years ago
Provide two points why good judgement is important when making budgeting decisions
Levart [38]
The purpose of a budget is to use good judgement in order to pay your bills and budget your money.  Good judgement is mostly important because you need to be able to use good judgement to determine what bills are "needs" and what bills are "wants."  This makes it so you take care of everything.  The other reason I would put, is to be sure you can order your bills from most important to least important.  So that you can take care of the most important "needs" before the less important "needs."  Like you might need a phone, but having the unlimited plan might be a want, so the phone bill wouldn't be as important as the electric bill, even though both are needs. 
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eduard

Answer:

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Teresa looks over her notes about conversational customs in Europe, and then she carefully plans what time shell place a busines
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Explanation:

This question configures that Teresa works in a globalized company.

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