<span>The predicted productivity equation is 2.0 + .5 * Experience + .2 * aptitude score . Then we can use the slope coefficients to figure this out. Jack gains .5 *.3 from his extra three months and Jill has gained from her extra 20 points on the aptitude test .2 * 20 = 4 . Then we have that 4 – 1.5 = 2.5 thus Jill is predicted to be more productive than Jack. Thus the answer is b.</span>
Answer:
e. All of the above are inputs required for capital budgeting analysis.
Explanation:
All of the given parameters are inputs required for capital budgeting analysis. is an input required for a multinational capital budgeting analysis, given that it is conducted from the parent's viewpoint.
a. Salvage value
Salvage value is the estimated resale value of an asset at the end of its useful life. It is an applicable cashflow in investment appraisal
b. Price per unit sold
This is the parameter used to calculate the amount of revenue which is the first line of cashflows in an investment appraisal
c. Initial investment
This is the amount that is first spent on capital acquisition of machinery or construction, it is a cashflow in year 0, of investment appraisal
d. Consumer demand
This is the another parameter used to calculate the amount of revenue which is the first line of cashflows in an investment appraisal
Question Completion:
Epsilon Co. can produce a unit of product for the following:
Direct material $8
Direct labor 24
Overhead 40
Total costs per unit $72
Answer:
Epsilon Co.
Epsilon should choose to:
Make since the relevant cost to make it is $56.
Explanation:
a) Data and Calculations:
Direct material $8
Direct labor 24
Overhead 40
Total costs per unit $72
Relevant Costs:
Make Buy
Direct material $8
Direct labor 24
Overhead 24
Total costs per unit $56 $60
b) It costs Epsilon less to make the units than to buy from the outside supplier. The relevant cost excludes the 40% of the overhead that will still be incurred by Epsilon if it buys from the supplier. Relevantly, it costs Epsilon $56 per unit to make when compared to the unit cost of $60 to buy. In absolute terms, it will cost Epsilon $76 ($60 + $16) to buy as against $72 to make a unit of the part.
