Answer:
- A. What will be the energy consumption of the new robotics.
- C. Whether even better robotics may be available in a short while.
- D. Whether there will be additional training necessary with the new robotics.
Explanation:
Factors that should be considered before a decision is made on purchasing or investing should include anticipated costs or the chance of the product being made obsolete such that new products may need to be bought.
The energy cost of the new robotics should therefore be considered along with the chance that there may be better robots in the future such that there may be a need to replace the robotics to be acquired.
Training cost should also be considered as this is very integral to using the robotics effectively.
Sunk costs should not be considered as they have already be expended and no decision will reverse them.
Development is the term that refers to the continuous process by which individual changes during life.
Answer: See explanation
Explanation:
a. What stock price is expected 1 year from now?
This will be calculated as:
= P0 × (1 + g)
where,
P0 = $40
g = growth rate = 7%
= P0 × (1 + g)
= 40 × (1 + 7%)
= 40 × (1 + 0.07)
= 40 × 1.07
= $42.80
b. What is the required rate of return?
This will be:
= (D1 / P0) + g
where D1 = D0 × (1+g) = 1.75 × (1+0.07) = 1.75 × 1.07 = 1.8725
= (D1 / P0) + g
= (1.8725 / 40) + 0.07
= 0.1168
= 11.68%
Breakeven point in units=
Fixed cost÷[selling price-variable cost]
Breakeven point in units
=750÷(3.75−1.25)
=300 units
