List five staple convenience goods that you or your household buys on a regular basis

OptiLux is considering investing in an automated manufacturing system. The system requires an initial investment of $4 million,

Deffense [45]

Answer:

Requirement 1: $257,000 Positive

Requirement 2: IRR is higher than 10%

Explanation:

Requirement 1:

We can use the following formula, to calculate the net present value of the project:

Net Present Value = Annual Cash Inflows * Annuity Factor - Investment

Here

Annual Cash Inflow is $500,000

r is 10%

n is the life of the project which is 20 years

Annuity factor = (1- (1+r)^-n) / r = (1 - (1 + 10%)^-20) / 10% = 8.514

Investment is $4,000,000

By putting values in the above equation, we have:

Net Present Value = $500,000 * 8.514 - $4,000,000

NPV = $257,000 Positive

Requirement 2:

Internal rate of return gives the required rate at which NPV is zero.

Since NPV is positive at 10%, IRR will be higher than 10%.

Always remember that, increase in the discount rate decreases the NPV and vice versa.

5 0

4 years ago

Paige Company estimates that unit sales will be 10,800 in quarter 1, 12,800 in quarter 2, 14,400 in quarter 3, and 18,300 in qua

stealth61 [152]

Answer:

Total= 27,056 units

Explanation:

Giving the following information:

Paige Company estimates that unit sales will be 10,800 in quarter 1, 12,800 in quarter 2, 14,400 in quarter 3, and 18,300 in quarter 4. Management desires to have an ending finished goods inventory equal to 24% of the next quarter’s expected unit sales.

Production Budget:

1st quarter= 10,800

2nd quarter= 12,800

Ending inventory= (14,400*0.24)= 3,456

Total= 27,056 units

4 0

3 years ago

Xuechen graduated from culinary school at the top of her class, and signed an employment contract to work as a chef for one of C

otez555 [7]

Answer: Yes, the employment contract has been breached, but the non-competition agreement has not been breached.

Explanation:

The options are:

a. Yes, the employment contract has been breached, but the non-competition agreement has not been breached.

b. No, the employment contract has not been breached, but the non-competition agreement has been breached.

c. Yes, both contracts have been breached.

Based on the information given in the question, we can state that the employment contract has been breached. This is because Xuechen signed an employment contract to work as a chef for one of Chicago's best restaurants for a period of three years but she left shortly to work as a manager at another Chicago restaurant. On the other hand, the non-competition agreement has not been breached.

3 0

3 years ago

Larry drinks a 12-pack of beer each day and believes all would be fine if people would just "get off his back." which criterion

Triss [41]

The criterion of abnormality that is absent from the given scenario above is personal discomfort. Personal discomfort is present when an individual is experiencing an emotional reaction in which is caused by factors such as stress that would lead to anxiety or discomfort.

5 0

4 years ago

A bank has excess reserves of $1 million and makes a new loan for $500,000. If the bank faces a 10% required reserve ratio, by h

nataly862011 [7]

Answer:

With a 10% required reserve ratio, the money supply could increase by $500,000/r when the loan is made.

This equals $5,000,000 ($500,000/0.1) where r = 10%

Explanation:

a) The money multiplier is the amount of money that banks generate with each dollar of reserves. Reserves is the amount of deposits that the Federal Reserve requires banks to hold and not lend.

b) The formula for the money multiplier is simply 1/r, where r = the reserve ratio.

c) The reserve ratio, also known as Cash Reserve Ratio, is the percentage of deposits which commercial banks are required to keep as cash according to the directions of the central bank. It is used by the central bank to control the supply of money in the economy. When the central bank wants to increase the money supply, it lowers the reserve ratio and vice versa.

d) According to wikipedia.com, "the money supply is the total value of money available in an economy at a point of time." It is usually defined as currency in circulation plus demand deposits. It is the demand deposits that give commercial banks the ability to create money using the reserve ratio.

8 0

3 years ago