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miss Akunina [59]
3 years ago
15

Which of the following is NOT a relevant cash flow and thus should NOT be reflected in the analysis of a capital budgeting proje

ct?a. Changes in net operating working capital.b. Shipping and installation costs for machinery acquired.c. Cannibalization effects.d. Opportunity costs.e. Sunk costs that have been expensed for tax purposes.
Business
1 answer:
Arisa [49]3 years ago
6 0

Answer:

The correct answer is letter "E":  Sunk costs that have been expensed for tax purposes.

Explanation:

Capital budgeting is a planning process used by companies to evaluate which large projects they will invest in and how to finance them. It is sometimes called "<em>Investment Appraisal</em>".  The type of projects experts analyze in capital budgeting include such major investments as building a new plant, buying new machinery, developing a new product, or buying another company, that is why option "<em>E</em>" is meaningless for this type of purpose.

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An entrepreneur is thinking of starting a firm. The firm will pay Tk. 320,000 in wages/salary, Tk. 150,000 on raw materials, Tk.
andrezito [222]
The answer should be 5000 i think
6 0
3 years ago
Carson Electronics uses65 percent common stock and 35 percent debt to finance its operations. The aftertax cost of debt is 5.8 p
Lina20 [59]

Answer:

$471,319.20

Explanation:

Carson's WACC = (0.65 x 16.1%) + (0.35 x 5.8%) = 10.47 + 2.03 = 12.5%

The PV of the investment = CF / (1 + wacc) + {[CF / (wacc - g)] / (1 + wacc)}

PV = $46,000 / 1.125 + {[$46,000 / (9.5%)] / 1.125}

PV = $40,890.71 + ($484,210.53 / 1.125)

PV = $40,890.71 + $430,428.49 = $471,319.20

8 0
3 years ago
An organic farmer has identified three distinct groups that might be interested in his products: vegetarians, health-conscious i
Firlakuza [10]

Answer:

The correct answer is b) market segments.

Explanation:

A market segment is a group of consumers, it is mostly homogeneous either by certain characteristics or by their needs, which are identified as a market that presents similar desires or buying habits and that would potentially respond similar to the strategy developed by the marketing mix.

Through market segmentation you will be able to identify the segment to be served and establish the strategy to achieve it. At the time of segmenting the market you can do so by responding to the strategy you wish to apply:

  • Differentiated: taking into account that the segment to be attended is heterogeneous and the product or service to be offered is built to meet the particular needs of each client.
  • Undifferentiated: based on the needs that the group commonly responds. Here the product or service satisfies each client corresponding to the indicated segment in the same way.
  • Concentrated: it is the most specialized strategy of the three. The idea here is to concentrate efforts in the segment where a strong comparative advantage is achieved.
3 0
3 years ago
he Steel Mill is currently operating at 84 percent of capacity. Annual sales are $28,400 and net income is $2,250. The firm has
nignag [31]

Answer:

-911.51 the debt will decrease if sales increase 12%

Explanation:

sales: 28,400

increase of 12%

new sales:  31,808

<em><u>profirt margin:</u></em>

2,250/28,400 = 0.0792 = 7.92%

income: 31,808 x 7.92% = 2,519.19

retained earnigns grow: (1-payout ratio) = 0.6

2,519.19 x 60% =  1,511.514‬

Increase in working capital: 5,000 x 12% = 600

Asset requirement - reteined earnigns grow = financial needs

600 - 1,511.51 = -911.51

8 0
3 years ago
Consider these long-term investment data:
Lemur [1.5K]

Answer:

{\large{\red{\mapsto{\maltese{\underline{\green{\boxed{\green{\underbrace{\overbrace{\orange{\pmb{\bf{answer:}}}}}}}}}}}}}}

N = 10

N = 10PMT = 0

N = 10PMT = 0PV = 84.49

N = 10PMT = 0PV = 84.49FV = 100

N = 10PMT = 0PV = 84.49FV = 100R = Rate(10,0,84.49,-100,0) = 0.017 = 1.7%

N = 10PMT = 0PV = 84.49FV = 100R = Rate(10,0,84.49,-100,0) = 0.017 = 1.7%b. Yield = 0.02 per quarter = 0.08 per year

N = 10PMT = 0PV = 84.49FV = 100R = Rate(10,0,84.49,-100,0) = 0.017 = 1.7%b. Yield = 0.02 per quarter = 0.08 per yearcontinuous rate = ln(1+0.08) = ln(1.08)...

7 0
3 years ago
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