If an organization wants to assess whether an applicant can actually perform a particular job, which selection technique would B
1 answer:
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Answer: Four pies.
Explanation:
Marginal cost is the additional cost of producing one extra unit of a good or service.
From this graph we see the marginal cost rise when the first pie is produced and then it subsequently decreases as the second and third pie is produced which is where it reaches its lowest point.
From the fourth pie, the marginal cost begins to rise again which means the marginal cost begins to increase when the producer makes four pies.
Answer:
Discounted payback period shall be as follows:
a. 1 year 7.36 months
b. 2 years 3.27 months
c. 3 years 2.9 months
Explanation:
a. Payback period in case of cash outflow = $5,700
For calculating the pay back period we shall firstly discount the cash flows to present value @14 %.
Year Cash Flow PV Factor PV of Cash Flow Cumulative
Cash Flow
0 - $5,700 1 - $5,700 -5,700
1 $4,400 0.877 $3,858.8 -$1,841.2
2 $3,900 0.770 $3,003 $1,161.8
Since the cumulative cash flows are positive in 2nd year payback period =
1 + = 1 year and 7.36 months
b. Payback period in case of cash outflow = $7,800
For calculating the pay back period we shall firstly discount the cash flows to present value @14 %.
Year Cash Flow PV Factor PV of Cash Flow Cumulative
Cash Flow
0 - $7,800 1 - $7,800 -7,800
1 $4,400 0.877 $3,858.8 -$3,941.2
2 $3,900 0.770 $3,003 -$938.2
3 $5,100 0.675 $3,442.5 $2,504.3
Since the cumulative cash flows are positive in 3rd year payback period =
2 + = 2 years and 3.27 months
b. Payback period in case of cash outflow = $10,800
For calculating the pay back period we shall firstly discount the cash flows to present value @14 %.
Year Cash Flow PV Factor PV of Cash Flow Cumulative
Cash Flow
0 - $10,800 1 - $10,800 -$10,800
1 $4,400 0.877 $3,858.8 -$6,941.2
2 $3,900 0.770 $3,003 -$3,938.2
3 $5,100 0.675 $3,442.5 -$495.7
4 $4,300 0.592 $2,545.6 $2,049.9
Since the cumulative cash flows are positive in 4th year payback period =
3 + = 3 years and 2.9 months
Final Answer
Discounted payback period shall be as follows:
a. 1 year 7.36 months
b. 2 years 3.27 months
c. 3 years 2.9 months