Answer:
Present Value 5,715,331.32
We are going to accept the project only if the initial investment is at 5,715,331 or below in order to achieve the return to support the cost of capital structure of the company
Accepting a project with a higher cost will not generate enought cashflow to sustain the patyment of debt and the return expected from the stockholders therefore, will generate a economic result and investor will leave the company for other which can sustain their desired return.
Explanation:
We are going to discount the yearly cash-flow at the given rate of 12.50%
then, the terminal value which is the present value of the future period will also be discounted at this rate.
The sum of all this will be the present value of the firm.
![\left[\begin{array}{ccc}$Year&$Cash Flow&$Discounted\\1&575000&511111.11\\2&625000&493827.16\\3&650000&456515.77\\4&725000&452613.93\\5&850000&471689.61\\$terminal&6000000&3329573.74\\Present&Value&5715331.32\\\end{array}\right]](https://tex.z-dn.net/?f=%5Cleft%5B%5Cbegin%7Barray%7D%7Bccc%7D%24Year%26%24Cash%20Flow%26%24Discounted%5C%5C1%26575000%26511111.11%5C%5C2%26625000%26493827.16%5C%5C3%26650000%26456515.77%5C%5C4%26725000%26452613.93%5C%5C5%26850000%26471689.61%5C%5C%24terminal%266000000%263329573.74%5C%5CPresent%26Value%265715331.32%5C%5C%5Cend%7Barray%7D%5Cright%5D)
The formula we use the present value of a lump sum:
We are going to accept the project only if the initial investment is at 5,715,331 or below in order to achieve the return to support the cost of capital estructure of the company
<span>The answer to this question is unfreezing stage.
Unfreezing stage is the stage of preparing the people to move and leaving the
comfort zones. In this stage, in order for the unfreezing stage to become
successful, the managers or leaders should command employees to embrace change
end educate the people that change is needed to reach the company’s goal.</span>
Answer:
A. True
Explanation:
It can hop on the trend to seem appealing. Ex: in the early 2000s, crop tops where a trend, so businesses where all making shirts that are crop tops so people would buy them.
I assumed you typo 821 by $21 per unit, then the answer will be
1- financial disadvantage of accepting the special order is loss of $60,000
2- a minimum selling price for these units should be $14.00
Explanation:
Loss of $60,000 = 15,000 x (14,000 – (5.1+3.8+1+4.2+1.5+2.4))
a minimum selling price for these units is $14.00 per unit because it’s the price the company can earn if accept a special order, though lower than cost of producing and selling at $18.00
