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Yakvenalex [24]
3 years ago
9

The Net Present Value method of project evaluation is preferred over the Internal Rate of Return method because the Net Present

Value method:
a-Considers the time value money where IRR does not.


b-Considers the risk of the project where the Internal Rate of Return does not.


c-Includes all the cash flows in its decision where IRR does not.


d-Considers the timing of the cash flows where the Internal Rate of Return does not.


e-Assumes a more realistic reinvestment rate assumption than IRR.
Business
1 answer:
Leno4ka [110]3 years ago
4 0
A because it’s right idkk o think it’s right I honestly guessed
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cestrela7 [59]

Answer:

Option E

 

Explanation:

A variable cost refers to the business expense that varies in relation to revenue from manufacturing. Based on the volume of output of a business, variable expenses gets significantly impact; these increase as productivity increases, and decline as production declines. Sources regarding variable costs typically involve raw material and storage costs.

Thus, from the above we can conclude that all of the mentioned costs are variable costs as direct labor , bottles and water will all increase as the level of production will increase.

5 0
3 years ago
Heavy Metal Corporation is expected to generate the following free cash flows over the next five​ years: LOADING.... ​Thereafter
Tatiana [17]

Answer:

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5 0
2 years ago
Calculate Payroll An employee earns $44 per hour and 1.5 times that rate for all hours in excess of 40 hours per week. Assume th
Marrrta [24]

Answer: $1750

Explanation:

Given Data

Earnings = $44/ hr

Overtime Earnings = 1.5 times Of $44

= $66

Hours worked during the week = 55 hrs

Social security tax rate = 6.0%

Medicare tax rate = 1.5%

Federal income tax = $633

Therefore:

Gross pay = Normal pay + overtime pay

Normal pay

= $44 * 40 hrs

= $1760

Overtime pay

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= $990

Gross pay = $1760 + $990

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= 0.06 * $2750

= $165

Medicare tax

= 0.015 * $2750

= $41.25

Total tax

= $633 + $41.25 + $165

= $839.25

Net pay

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= $1910.75

6 0
3 years ago
Tiny went back to his office after the meeting and began to crunch the numbers on the rapid inflator. At a price of $10 per unit
Artist 52 [7]

<u>Solution and Explanation:</u>

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There the Inflatable Division is Currently Earning $ 250,000 annually from an Asset base of $ 1,250,000

Therefore, ROI = 250000 / 1250000 * 100=20 \%

<u>Part B -   </u>Let the maximum variable cost be X.

Given that - 1. Selling Price per Unit = $10 , 2. No of Units to be produced = 40000 , 3. Annual Fixed Cost = $ 140000

Therefore ,   ROI = Current Earning + New Earning / Current Assets + New Assets

20% = 250000+[(10-\mathrm{X}) * 40000-\underline{140000}] / 1250000+100000

Solve for X getting, X = 6

Therefore maximum variable cost it can incur without change in current ROI is $ 6 per unit  

Resulting Contribution Margin per Unit = SP - VC = $10 minus $6 = $4 per unit

<u> part C -</u>   Minimum Transfer Lightning division Should charge

Given Information - Capacity of Lightning division is 150000 units and Utilized capacity is 135000 units. Therefore Spare capacity is 15000 units .Also Market Price of Product of Lightning division is $ 5 and Variable cost is $3 per unit.

So for the First 15000 units of Requirement of Inflatable division - Transfer Price should be Variable cost i.e $ 3 per unit because Lightning division has spare capacity in this.

For the next 25000 units of requirement of Inflatable division - Transfer Price should be Market Price i.e $ 5 per unit as Lightning division has to reduce is external sale.

Therefore Minimum TP = 15000 * 3+25000 * 5 / 40000=\$ 4.25 per Unit

<u>Part D -  </u>No, Here Tiny offers to transfer $4 ( $6 - $2 ) per unit to Lightning division. However  the minimum TP Lightning should get is 4.25 per unit and if less than this TP is offered by Tiny it will lead to loss in the Lightning Division.

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You can make CSR as an regular day to day activity at a cafe. When there is excess food cooked for any event or party orders need not be wasted instead can be donated for people in need.

Communication is a key to involve all the 16 employees of the cafe into CSR activities. Employee support through volunteering is important to perform CSR.

As it is a united mission this brings unity among the employees. When information spreads to outsiders they join hands for CSR and the brand image of Cafe will improve in local society.

Promote CSR activities with images and posters of employees volunteering in these activities will increase visibility of the Cafe.

6 0
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