Answer:
Ray should place 32 orders each time.
Explanation:
number Ray should order each time
= sqrt(2*Annual Demand*Ordering Cost /Carrying cost per unit per annum )
= sqrt(2*1,174*$24/$55)
= 32
Therefore, Ray should place 32 orders each time.
Answer:
a. Calculate the project's NPV and IRR where the discount rate is 11.2 percent. Is the project a worthwhile investment based on these two measures? Why or why not?
- NPV = -$4.5 million
- IRR = 2.97%
The project should be rejected because the NPV is negative.
b. Calculate the project's MIRR. Is the project a worthwhile investment based on this measure? Why or why not?
The project should be rejected because the NPV is negative. The IRR or MIRR do not matter at all if the NPV is negative.
Explanation:
the net cash flows are:
- year 0 = -$18 million
- year 1 = $4.8 million
- year 2 = $4.8 million
- year 3 = $4.8 million
- year 4 = -$4.8 million
- year 5 = $1.4 million
- year 6 = $1.4 million
- year 7 = $1.4 million
- year 8 = $1.4 million
- year 9 = $1.4 million
- year 10 = $1.4 million
Using an excel spreadsheet we can determine the project's NPV and IRR:
NPV = $13.5 million - $18 million = -$4.5 million
IRR = 2.97%
We can also calculate MIRR using excel. We can use 11,2% finance rate and reinvestment rate:
MIRR = 8.57%
Answer:
C
Explanation:
Money neutrality is a theory which submits that money supply only affect nominal variable and not real variables.
Nominal variables include price, wages and exchange rate
real variables include employment and real GDP
Money is only neutral in the long run and not in the short run because of money illusion. Money illusion causes economic agents to respond to money supply changes.
Money is neutral only in the long run
This type of municipal government is called the commission form. It is the type that combines the executive and legislative functions into a single body. In this type, the voters elect a small group called commission to lead the whole municipality.
Perseverance is the most important trait of a successful business owner
