Answer:
d. 13.31%
Explanation:
IRR is the rate at which NPV = 0
IRR 13.31%
Year 0 1 2 3
Cash flow stream -1100.000 450.000 470.000 490.000
Discounting factor 1.000 1.133 1.284 1.455
Discounted cash flows project -1100.000 397.136 366.060 336.804
NPV = Sum of discounted cash flows
NPV Project = 0.000
Where
Discounting factor = (1 + discount rate)^(Corresponding period in years)
Discounted Cashflow = Cash flow stream/discounting factor
IRR = 13.31%
Therefore, The project's IRR is 13.31%
I think it's A. They decide to open a mattress drop off site, downtown, because the marginal, cost of the new location is less than the other projects.
Answer:
Ending inventory= $119,000
Explanation:
Giving the following information:
Sales (net) $1,450,000
Estimated gross profit rate of 42%
Beginning merchandise inventory $100,000
Purchases (net) 860,000
Merchandise available for sale $960,000
Cost of goods sold= 1,450,000*0.58= 841,000
Ending inventory= 960,000 - 841,000= 119,000
Answer:
Option (c) is correct.
Explanation:
Variable manufacturing costs = $30000
Variable selling and administrative costs = $14000
Fixed manufacturing costs = $160000
Fixed selling and administrative costs = $120000
Investment = $1700000
ROI = 50%
Planned production and sales = 5000 pairs
ROI = Investment Value × ROI Rate
= $1,700,000 × 50%
= $850,000
Desired ROI per Pair of Shoes :-
= ROI ÷ Planned production and sales
= $850,000 ÷ 5000 pairs
= $170
Answer:
The correct answer is the option D: path dependence.
Explanation:
To begin with, the concept called as <em>''path dependence''</em> in the field of management and economics, is known for refering to the situation where the past decisions of a person affects the current situation that the person is going through and therefore it is said that the dependence is in the path that the person choose.
To sum up, the scenario illustrated in the case of Iceberg Storage relates to a case of path dependence due to the fact that its managers decided to invested in something that the competitors did not and therefore to take risks knowing that a possible damage can occur in the future, and eventually it did.
