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miss Akunina [59]
2 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]2 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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Using the intuitive least cost method for the given transportation problem, answer the following: Cleveland Dayton Erie Supply A
ch4aika [34]

Answer:

The demand location where demand is unmet is equal to Cleveland. Received only 75 units. 100 units demand is unmet.

Explanation:

Solution

From the example given, we solve for which demand location will have an unmet demand

Now,

The maximum quantity that can be shipped from Allentown to Erie is 100.

The Maximum quantity that can be shipped from Harrisburg to Cleveland is 175

While,

The Maximum quantity that can be shipped from Harrisburg to Dayton is 175

Hence, in case we want an  solution optimum to get the required demand as many as possible with the supply given and with a low costs, then we need to find the optimum solution.

By applying a least cost method called greedy, we need to remove our least costing node and then provide minimum of demand and supply unit a present to each cell.

Thus,

The first least cost is Allentown to Dayton.

From Allentown to Dayton 100 units. Next least cost is Philadelphia to Erie.

From Philadelphia to Erie 150 units. Next least cost is Harrisburg to Erie.

From Harrisburg to Erie 25 units. Next least cost is Harrisburg to Dayton.

From Harrisburg to Dayton 75 units. Next least cost is Harrisburg to Cleveland

From Harrisburg to Cleveland 75 units.

So, for the  optimum solution, the right choice of answer will be

From Allentown to Erie = 0 units

From Harrisburg to Cleveland = 75 units

From Harrisburg to Dayton = 75 units

Therefore, The demand location where demand is unmet  is equal to Cleveland. Received only 75 units. 100 units demand is unmet.

6 0
3 years ago
The UCC rule that says that a merchant who offers to buy, sell, or lease goods and gives a written and signed assurance on a sep
makvit [3.9K]

The UCC rule says that a merchant who offers to buy, sell, or lease goods and gives a written and signed assurance on a separate form that the offer will be held open cannot revoke the offer for the time stated or if no time is stated, for a reasonable time is referred to as the <u>Firm Offer Rule.</u>

<u></u>

<h3><u>A Firm Offer: What Is It?</u></h3>

When goods are sold, a firm offer is deemed to have been made when a guarantee to keep the offer open has been signed and the selling merchant meets the requirements for a merchant under the Uniform Commercial Code. Customers frequently ask for a definite offer so they can be certain of their cost over a predetermined period of time. A lot of retailers also request definite offers from their suppliers. Firm offers have a number of benefits, but there is a chance that things could change and the original offer would no longer be appropriate.

For instance, you might not be able to maintain the price you initially proposed due to rising raw material costs or running out of stock.

Only the time period specified in the offer is valid for firm offers. If the offer does not include a deadline, it will be valid for a maximum of three months.

Learn more about the firm offer rule with the help of the given link:

brainly.com/question/13640672?referrer=searchResults

#SPJ4

3 0
1 year ago
A company reported total equity of $145,000 at the beginning of the year. The company reported $210,000 in revenues and $165,000
Allushta [10]

Answer:

e. $ 282,000

Explanation:

To determine the assets of the company at year end, we need to find the equity at year end, this is calculated as follows:

Opening Equity                                                      $ 145,000

Net Income for the year                                        $ 45,000

Revenues     $ 210,000

Expenses     $ 165,000

Equity at end of year                                            $  190,000

The accounting equation is

Assets = Liabilities + Stockholders' Equity

Assets = $ 92,000 + $ 190,000                           $ 282,000

4 0
3 years ago
Dee's Fashions has a growth rate of 5.2 percent and is equally as risky as the market while its stock is currently selling for $
emmasim [6.3K]

Answer:

12.6%

Explanation:

Using the Capital Market Pricing Model (CAPM) to compute the expected rate of return on Dee's Fashion stock.

Expected rate of return = R_{f} +\beta (R_{m} -R_{f} )

Where R(f) = risk free rate of return, or market return less risk premium = 12.6% - 8.7% = 3.9%

\beta = the risk of the stock relative to the market risk. In this case, beta = 1, since the company is equally as risky as the market (as noted in the question)

R(m) = return of the stock market = 12.6%

Therefore, the expected rate of return on the stock

= 3.9% + 1 * (12.6% - 3.9%)

= 3.9% + 8.7%

= 12.6%.

The return is the same as the stock market return because the stock is equally as risky as the market.

5 0
3 years ago
Scenario: Mary Willis is the advertising manager for Bargain Shoe Store. She is currently working on a major promotional campaig
djyliett [7]

Answer:

Instructions are below.

Explanation:

Giving the following information:

Before:

Fixed costs= 270,000

Selling price= $40

Unitary variable cost= $24

Sales in units= 20,000

After:

Fixed costs= 294,000

Selling price= $38

Unitary variable cost= $24

Sales in units= 24,000

<u>First, we need to calculate the break-even point in units:</u>

Break-even point in units= fixed costs/ contribution margin per unit

<u>Before:</u>

Break-even point in units= 270,000/ (40 - 24)

Break-even point in units= 16,875 units

<u>After:</u>

Break-even point in units= 294,000/14

Break-even point in units= 21,000 units

<u>Now, the margin of safety ratio:</u>

Margin of safety ratio= (current sales level - break-even point)/current sales level

<u>Before:</u>

Margin of safety ratio= (20,000 - 16,875)/20,000

Margin of safety ratio= 0.156

<u>After:</u>

Margin of safety ratio= 3,000/24,000

Margin of safety ratio= 0.125

7 0
3 years ago
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