Answer:
The value of the option to wait is $0.70,option A.
Explanation:
In calculating the value of the option to wait,I discounted all cash flows under both alternatives, using the discount rate of 12% as given in the question.
Option to start now gives net present value(positive return ) of $360.64 while the other one gives $361.34,invariably option to wait one year gives $0.70($361.34-$360.64) more than the option to start now.
The formula used in the calculating present value is PV=FV(1+r)^n
Where PV=present value
FV=future value
r=rate of interest
n=number of year
Find attached spreadsheet for detailed calculations.
Answer: D. All of these are reasons why operations management is important.
Explanation: Operation management is concern with converting materials and labor efficiently into goods and services for profit maximization. It is the administration of business principles in creating the highest level of efficiency within an organization.
Efficient and productive operation drives the economic well being of nations, Operations management is responsible for much of the value created by organizations and a key source of competitive differentiation among firms, are reasons why operation management is important.
Answer:
3) Corporations use acquisition as a substitute for innovation.
Explanation:
The fastest way in which a corporation can enter a new market or develop new products is through buying existing companies that already operate in the new target markets or have developed the new products that the corporation wishes to sell.
Research and development is very costly and time consuming, and on many occasions the results aren't even good or are not as good as expected. By acquiring a smaller company that has already developed the product, then the corporation might even save money.
Answer:
Purchasing insurance can help Adrian minimize risk. Adrian’s best decision in this case is to not buy the insurance
because the policy is
too expensive in relation to the value of his vehicle
Answer:
$18,106.25
Explanation:
For computing the carrying value of the bonds , first we have to determine the discount amortization for 8 years which are shown below:
= (Issued amount - proceeds from the bonds) ÷ time period
= ($20,000 - $18,300) ÷ 8 years × 2 years
= $106.25
Now the carrying value would be
= Proceeds from the bonds + discount amortization for 8 years
= $18,000 + $106.25
= $18,106.25
Since the time period is 8 which are paid in semi-annual so we double the time period
