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3 years ago

Read the sentence.

Business

1 answer:

olchik [2.2K]3 years ago

5 0

Answer:

The correct answer is B

Explanation:

The economic question that recognize the consumers, is for whom to produce. Under this situation, the business need to determine or evaluate that the goods and the services which they are producing, for whom they producing, either for the customers or business so that they could earn the profit by selling those goods and services.

Under the following condition, manny wishes sells the candy bars to the classmates, so they are producing for the classmates (they identifies the Whom they are producing for) in order to earn extra amount of money.

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Can you think of some other capital budgeting situations in which negative cash flows during or at the end of the project's life

guapka [62]

Answer:

Multiple IRRs:

Said another way, Multiple IRRs occur when a project has more than one internal rate of return. The problem arises where a project has non-normal cash flow (non-conventional cash flow pattern).

Internal rate of return (IRR) is one of the most commonly used capital budgeting tools. Investors make decisions by comparing the IRR of the project under consideration with the hurdle rate. If the IRR is greater than the hurdle rate, the project is accepted, otherwise it is rejected. When there are more than two IRRs, it is not exactly clear which IRR to compare with the hurdle rate.

Hurdle rate is the minimum required rate of return which businesses use as a benchmark to decide whether to invest in a project or not.

So a typical situation which can generate negative cashflows which can in turn lead to multiple IRRs towards the end of the project is where the conditions of investment become adverse towards the end of the project.

Imagine that toward the end of the lifecycle of a project, a forecasted increase external costs such as Interest Rate, influenced by government policies translates to an erosion of the bottom line generated by the business in that year.

Period 0 1 3 3 4 5

Unconventional cash flows ($)-19,000 16,000 16,000 6,000 6,000 -52,000

The series is non-conventional cash-flow pattern, which has two sign changes. This is the range in which the net present value of the non-conventional cash flow series is positive. The multiple IRR problem poses a series problem to analysts because the decision is not obvious.

Cheers!

5 0

4 years ago

You are considering the purchase of a new machine to help produce a new product line being introduced. The machine is expected t

miss Akunina [59]

Answer:

A. 4.3 batches

B. 215 parts

C. 3 batches

D. 184 parts

Explanation:

Please find explanation attached

7 0

3 years ago

Fvbfffbvbfbfbt rgrfgvfvfv

Dmitry [639]

Answer:

I do not understand the letters of which you are writing.

5 0

3 years ago

Which statement is the converse of the given statment

pochemuha

Might seem controversial though :) but I am pretty sure that the correct variant that properly shows the converse of given statement is the third one. As you know, the converse (in plane language) has the same meaning of the statement just by replacing two points. This statement has positive tone (if you make - you ll have) so it's directly coincides with C(you have, cause you have made)

4 0

3 years ago

ACME labs bought a new inspection device for $182,730. The accounting department has estimated that the device will have an annu

enyata [817]

Answer:

salvage value is $16,368.34

Explanation:

given data

initial cost = $182,730

annualized capital cost = $42,442

service life = 7 year

interest rate = 15%

solution

we get here first present value that is

annual value = rate × $\frac{present\ value}{(1 - (1+ r)^{-t})}$ .................1

put here value and we get

42,442 = 15% × $\frac{present\ value}{(1 - (1+ 0.15)^{-7})}$

solve it we get

present value = $176,576.5343

present value = initial investment + salvage value ..............2

we take here present value and initial investment will be negative

-176,576.5343 = -182,730 + salvage value(p/f,15%,7)

-176,576.5343 +182,730 = salvage value(p/f,15%,7)

6,153.465 = salvage value × 0.3759

salvage value = 16,368.34

3 0

3 years ago