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3 years ago

The appropriate discount rate for the following cash flows is 7.38 percent per year.

Business

1 answer:

Kaylis [27]3 years ago

6 0

Answer:

Present value = $7107.76379 rounded off to $7107.76

Explanation:

The present value of cash flows can be calculated by discounting each of the cash flow back to today's value and summing them up. The present value of the cash flows can be calculated using the following formula,

Present Value = CF1 / (1+r) + CF2 / (1+r)^2 + .... + CFn / (1+r)^n

Where,

n is the total number of periods
CF represents the cash flow in each year
r is the discount rate

Present value = 2480 / (1+0.0738) + 0 + 3920 / (1+0.0738)^3 +

2170 / (1+0.0738)^4

Present value = $7107.76379 rounded off to $7107.76

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Scilla [17]

Answer and Explanation:

The computation is shown below:

a. The operating break even point in number of CD is

= Fixed operating cost ÷ (Selling price per unit - variable operating cost)

= $73,500 ÷ ($13.98 - $10.48)

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= Fixed cost + Quantity × variable cost per unit

= $73,500 + 21,000 CDs × $10.48

= $293,580

c. If he can sell 2,000 CDs per month than annual sale is 24,000 CDs and the break even is exceeded than 3,000 CDs by taking a difference of 24,000 CDs and 21,000 CDs . So, it should go to the CD business

d. Now the EBIT is

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= ($13.98 × 24,000) - $73,500 - ($10.48 × 24,000)

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= $10,500

We simply applied the above formulas

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3 years ago

Suppose Americans buy inputs from foreigners. When the price of foreign inputs falls, the U.S. SRAS curve __________, which tend

Mademuasel [1]

When the price of foreign inputs falls, the U.S. SRAS curve option (b)i.e, shifts rightward; which tends to reduce the U.S. price level.

<h3>What is the SRAS curve?</h3>

We can understand how each firm in an economy reacts to price stickiness using the short-run aggregate supply curve (SRAS). The SRAS curve will have an upward slope when prices are stable. According to the SRAS curve, more output results from higher price levels.

The cost of labor, or wages, and the price of imported commodities that we use as inputs for other products are two other significant variables that may cause the SRAS curve to change in addition to energy prices.

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2 years ago

Tell me about one of your most passionate beliefs and explain how it has an impact on the way you think, behave, attend events,

WITCHER [35]

Answer:

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3 years ago

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prohojiy [21]

Answer:

See below

Explanation:

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SOVA2 [1]

The correct option is A.
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