Answer: $109.3 per machine hour
Explanation: We can compute total production engineering cost per hour by using following equation :-
but first we need to calculate variable cost at 9600 hours :-
= $856,320
now,
=$109.3 per machine hour
Answer:
Arbitrage opportunity may exists as the ZCBs selling at different price at same time due to change in their YTM .
The PV of 100 face value zcb with different ytm are different , in this case.
for one year maturity with face value 100 current price = fv/ pv at 8% = 92.59
for Two year maturity with face value 100 current price = fv / Pv at 9% for two years = 84.167 , if the bond holder sell the bond after 1 year only, the price = 91.74 .
a) The arbitrage opportunity exist with buy two bond with face value 100 with maturity of 1 year and face value 110 with maturity of 2 years.
b) profit 0.01 , as difference between PV of both bond at their YTM rate.
Answer:
Explanation:
exponential smoothing alpha = 0.5
formula = Previous demand x Alpha + previous forecast x (1 - alpha)
26 32 40 27 30
26 26 29 34.5 30.75
week 2 forecast
26x0.5 + 26x0.5 = 26.
week 3 forecast
32x0.5 + 26x0.5 = 29
use the same procedure for week 4 and week 5
week 6
30x0.5 + 30.75x0.5 = 30.375
Demand Forecast for week 6 = 30.38
higher prices and higher outputs
That statement is false.
Economic theories will determine how companies see the market and will somehow affect the decision that they will make for the market.
This decision will influence the future economic trends because these companies usually are really forward thinkers. From this, we could draw a correlation between future economic trends and economic theories
