Answer:
($35 million + $12 million) / $70 million = 0.6714
Explanation:
Answer:
The Firm should not Buy and Install the press as it delivers a negative NPV of -$24,924 at 11% discount rate over its 4 year operations
Explanation:
The General rule is to appraise the investment based on various appraisal techniques.
A technique that should be considered must have special focus on the time value of money, the required rate of returns expected by the firm and other Cashflow considerations.
The Net Present Value (NPV) approach will be the best method to proceed with.
The NPV approach typically falls under the following decision tree:
a. If NPV is negative (Reject the proposal)
b. If NPV is positive (Accept if it's a singular project, Accept the highest positive NPV if it's for mutually exclusive Projects)
c. If Zero (this is the breakeven line at which the Project covers all its cost but does not return a profit.) Also referred to as the IRR
Kindly refer to the attached for detailed workings
Answer: Please refer to Explanation
Explanation:
(a) A rise in the average price of inputs
DECREASE because it is now less profitable for suppliers so they will produce less.
(b) An increase in worker productivity;
INCREASE because total cost is reduced as more goods are being produced per cost.
(c) Government antipollution regulations become stricter.
DECREASE (unless the increase in antipollution device production outweighs the decline in production caused by the increased cost of the regulations)
(d) A new subsidy program is enacted for new business investment in productive equipment.
INCREASE as the subsidy program will lower the cost of inputs so Suppliers will produce more goods.
(e) Energy prices decline.
INCREASE as there again would be Lower Input Costs thus pushing Suppliers to produce more.
C.)intuitive listening takes place when the listener tries to discern the deeper meaning of a speaker’s words.
A.)Active
B.)efficient
Explanation:
Intuitive listening means that the person who is listening is trying to understand as well as imbibe what the other is saying to a deeper level.
This involves actively thinking about what the other person is saying and then critically discerning what it really means above the meaning of its own words.
Then the person who is listening reaches to the 'deeper' meaning or the essence of what the other person is trying to say.
This is the process that is involved in intuitive listening.
<u>Explanation</u>:
Remember, Implicit cost refers to cost that do not involve monetary transactions by Jacques, while his Explicit cost includes all forms of direct payments made by Jacques to others while selling his boat.
<u>Therefore, the cost are assigned below:</u>
- The $50,000 salary Jacques could earn if he worked as a financial advisor= Implicit Cost
- The $15,000 rental income per year Jacques would receive if he chose to rent out his showroom= Implicit
- The wholesale cost of $430,000 and utility bills totaling $301,000 cost for the boats that Jacques pays the manufacturer= Explicit Cost