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Aleks [24]
3 years ago
7

When the alternatives under consideration have only disbursements (service alternatives), the do-nothing alternative must be inc

luded so that a rate of return analysis can be conducted on the incremental cash flow.
True or False
Business
1 answer:
Rom4ik [11]3 years ago
7 0
Answer: False

Explanation:
When more than one alternative can be selected from those available, the alternatives are said to be mutually exclusive. In evaluating independent alternatives, each alternative is compared against the "Do Nothing" alternative.
For mutually exclusive alternatives, the do-nothing is a viable option when revenue alternatives are involved.
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3 years ago
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Suppose the U.S. Treasury offers to sell you a bond for $687.25. No payments will be made until the bond matures 5 years from no
pantera1 [17]

Answer:

6%

Explanation:

Data provided as per question is as given below:-

Redeemed amount = $1,000

Sale value of Bond = $687.25

Number of year = 5

The computation of interest rate is as shown below:-

Interest rate = (Redeemed amount ÷ Sale value of bond) ^ (1 ÷ Number of Year) - 1

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3 years ago
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3 years ago
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RevGilla manufactures a motorcycle part in lots of 155 units. The raw materials cost for the part is $150, and the value added i
frutty [35]

Answer:

77.5 units

Explanation:

Given that,

Lot size = 155 units

Raw material cost = $150

value added in manufacturing per unit = $300

Total cost per unit = $450

Lead time = 30 weeks

Annual demand = 4,200 units

Average cycle inventory = Lot size ÷ 2

                                         =  155 ÷ 2

                                         = 77.5 units

Value = Average cycle inventory × cost per unit

          = 77.5 × $450

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7 0
3 years ago
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SIZIF [17.4K]
The probability of an outcome is the NUMBER of times the outcome would happen in a very long series of repetitions.
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