Answer:
C. Mixed cost
Explanation:
Here are the options to this question :
A. Conversion cost
B. Fixed cost
C. Mixed cost
D. Variable cost
Mixed cost is cost that contains both variable and fixed costs
Fixed cost is cost that doesn't vary with output. Fixed cost in this question is $30. It does not vary with miles driven
Variable cost is cost that varies with output. Variable cost in this question is $0.2. It varies with miles driven
Answer:
1. In a Year 20,367 20,017
2. In a Year 21,333 21,917
3. In the case of NPW analysis Selected Target is best option because it is the better and cheaper investment while EUAM analysis states Walmart kit is better option,
4.Target is the best option because the cost difference is only around $600 which will last for 6 Years while in walmart case we will need to replace all the furniture in 3 Years .
Explanation:
1. Using NPW Analysis
Walmart Kit Target
Intial Cost 40000 65000
AMC 10000 12000
Salvage Value 12000 25000
Life Years 3 6
Total Cost
Intial Cost 40000 65000
Less Salvage 12000 25000
Balance 28000 40000
5% Interest 6000 19500
AMC PV 2.71 5.05
Amc 27100 60600
Total Cost 61100 120100
In a Year 20,367 20,017
2. Using EUAW Analysis
Walmart Kit
Target
Intial Cost 40000 65000
AMC 10000 12000
Salvage Value 12000 25000
Life Years 3 6
Total Cost
Intial Cost 40000 65000
Less Salvage 12000 25000
Balance 28000 40000
5% Interest 6000 19500
AMC 30000 72000
Total 64000 131500
In a Year 21,333 21,917
In the case of NPW analysis Selected Target is best option because it is the better and cheaper investment while EUAM analysis states Walmart kit is better option,
Target is the best option because the cost difference is only around $600 which will last for 6 Years while in walmart case we will need to replace all the furniture in 3 Years .
Hence Target product will be the best option we would advice the management to go for.
Answer:
Inital rate 1$= 1.411 reals
1) After interest the value in dollars = 1.12*170000=190,400
In same period the Real declined 24% against dollar
Value in USD=190400*.76=$144,704
b)
After interest of 9% the value in dollars = 1.09*170000=185,300
In same period the Real up by 13% against dollar
Value in USD=185300*1.13=$209,389
Option C
In the absence of competitive markets, we can use one-sided prices to determine exact cash values is NOT correct statement regarding the valuing of costs and benefits
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Explanation:</u></h3>
Before choosing a unique project, discerning administrators lead a cost-benefit analysis to decide all the inherent costs and incomes that a firm might produce from the plan. The consequence of the analysis will decide whether the project is financially achievable.
Competitive profit or market share enlarged as an effect of the decision. Opponents do change the customer’s opinion of value. Buyers are buying over products and brands and accept price variations into account when assessing the condition and gains of competitive products.