Answer:
an increase in the operating income by $16,322
Explanation:
The computation of the impact in the operating income is given below:
Variable cost of 75 units (1300000 × 75 ÷ 12700) 7,678
Sale price of 75 units (75 × 320) 24,000
Increase in operating income (24000 - 7678) $16,322
hence, the impact in the operating income is that there is an increase in the operating income by $16,322
Answer:
1. $275 million
Yes
2. 30%
Explanation:
Calculation for the NPV of the investment opportunity
NPV = –100 + 30/0.08
NPV= $275 million
Therefore the NPV will be $275 million
Yes, Based on the above Calculation they should make the investment
2. Calculation for IRR
IRR: 0 = –100 + 30/IRR
Hence,
IRR = 30/100
IRR = 30%
Therefore the IRR will be 30%
The IRR is great only in a situation where the cost of capital does not go beyond 30%.
To be able to fix the thing that are broken and to communicate with each other
Answer:
Both cover an unexpected loss of income.
Explanation:
Both life insurance and disability insurance protect personal finances during a disaster. Life insurance pays beneficiaries when the insured dies. Disability insurance compensates for lost income when one is unable to work as a result of injuries.
Life and disability insurance policies are about financial loss protection. Life insurance protects the insured's beneficiaries against financial loss when the insured dies, while disability insurance covers the insured against any financial loss due to the inability to work.
