Answer:
$9,201.6
Explanation:
Calculation for The net present value of the proposed investment is closest to:
Using this formula
Net Present value = (Annual cost saving * PVAF) + (Salvage value * PVIF) - Cost of investment
Let plug in the formula
PVAF (10%,5 years) = 3.7908
PVIF (10%, 5 years) = 0.6209
Net Present value = ($18,000 * 3.7908) + ($8000 * 0.6209) - $64000
Net Present value = $68,234.4+$4,967.2-$64,000
Net Present value = $9,201.6
Therefore The net present value of the proposed investment is closest to:$9,201.6
Answer:
C) Product
Explanation:
There is fours Ps in the marketing mix
A. Place: The place denotes the location at which the product is sold and buyed
B. Price: The price is the key element of the product without which the product is not sold or even bought. Through knowing the price of the product, customers are able to purchase the product
C. Product: The product describes the attributes that attract the customer.
D. Promotion: The promotion is the way to knowing the company products either by advertising, the worth of mouth
According to the given situation, it focuses more on the product rather other elements of the marketing mix
Answer:
Pb R
atio:
For company A = 2.375
For company B = 1.5
Explanation:
As per the data given in the question,
ROPI = NDA (RNOA - WACC)
For Company A 100 × (21%-10%)
For Company B 100 × (14%-10%)
Present value of ROPI = (ROPI ÷ (1+WACC)) ÷ [1-(1+g) ÷ (1+WACC)]
For Company A = (11 ÷ (1+0.10)) ÷ [1-(1+0.02) ÷ (1+0.10)]
= $137.50
For Company B = (4 ÷ (1+0.10)) ÷ [1-(1+0.02) ÷ (1+0.10)]
= $50
Market value of equity = NOA + present value of ROPI
= $100 + 137.50 = $237.50(Company A)
= $100 + $50 = $150(Company B)
Pb Ratio = Market value of equity ÷ Book value of equity
For company A = $237.50÷100 = 2.375
For company B = $150÷100 = 1.5
Pricing objectives that seek profit maximization or to attain a target return on investment are examples of profitability pricing objectives, a relationship between the benefits provided by a certain operation or thing and the investment or effort that has been made; when it comes to financial performance; it is usually expressed in percentages.
