Answer:
NPV = 138,347.55
Explanation:
<em>Net Present Value (NPV) : This is one of the techniques available to evaluate the feasibility of an investment project. The NPV of a project is the difference between the present value of the cash inflows and the cash outflows of the project.</em>
We sahall compute theNPV of this project by discounting the appropriate cash flows as follows:
<em>Prevent Value of operating cash flow</em>
PV =A× (1- (1+r)^(-n))/r
A- 23,900, r - 12%, n- 5
PV = $23,900 × (1- (1.12)^(-5))/0.05
=206,769.963
<em>PV of Working Capital recouped</em>
PV = 5600× 1.12^(-5)
= 3,177.59
NPV = initial cost + working capital + Present Value of working capital recouped + PV of operating cash inflow
NPV = (66,000) + (5600) + 3,177.59 + 206,769.96
NPV = 138,347.55
Answer: $1.50
Explanation:
Based on the information given in the question, we are informed that the variable cost of each box is $1.50 and usually has a contribution margin of $0.80 per box.
We should note that the minimum transfer price that the box division should find as acceptable will be the relevant cost. In this case, the relevant cost is given as $1.50 pee box and therefore, the minimum transfer price will be $1.50.
A and c because jack knows how to do his work
Answer:
Explanation:
(A) First Degree Price Discrimination
(B) it is regarded as a form of price discrimination because the current price at which Datsun models are sold, differs from the former price (the current price is half the original or former price).
Also, this is a deliberate action or business strategy taken by the Nissan automobile company so it is price discrimination.
(C) Nissan might choose this approach because (according to the question) there are emerging markets and the Datsun model of Nissan motors will soon go obsolete.
So since the first aim of a company is to make profit, instead of losing buyers of the old model completely, Nissan will sell the off at much lower prices.
(D) Yes, it will a success move if the company does not presently have the technology to adapt to the new or emerging market for different type or function of vehicles.
Answer:
The correct answer is option c.
Explanation:
An oligopoly market is a form of imperfect competition where there are a few firms. These firms can produce identical or differentiated products. Because of a few firms in the market, there is a high degree of competition in the market.
These firms are interdependent such that the economic decisions of a firm affect its rivals. So each firm has to consider the reaction of its rivals before making decisions.
The firms are price makers and face a downward-sloping demand curve.
