Answer:
Missing word <em>"2. What is the total sunk cost regarding the decision to buy the model 200 machine rather than the model 300 machine? 3. What is the total opportunity cost regarding the decision to invest in the model 200 machine?"</em>
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1. Differential cost of buying model 200 machine = Cost of model 200 machine - Cost of model 300 machine
= $342,000 - $373,650
= -$31,650
We'll have a savings of $31,650 if model 200 is purchased rather than model 300
2. $383,000 (The Cost of existing machine). Note: $383,000 is a sunk cost since it has already been incurred.
3. Opportunity cost is the total return of the project if the money was invested elsewhere. The Opportunity cost of investing in model 200 machine is $445,600 (Returns from the alternate project)
Answer:
-$300 million
Explanation:
Change in net working capital (CNWC) = $100 million
Capital Expenditures (CE) = $200 million
Assuming no depreciation expenses, the free cash flow (FCF) is given by:
Since no revenues are expected until the next year, EBIT = 0.
The project's free cash flow today is -$300 million.
Answer:
d.borrow $375,000
Explanation:
Given that
Amount available to invest = $500,000
Risk free rate = 8%
Return on the risky portfolio = 16%
Now the computation is shown below:
The interest rate should be
Interest amount on borrowings = $375,000 × 8% = $30,000
So, the total amount available to invest is
= $500,000 + $375,000
= $875,000
Now the total inflow is
= $140,000 - $30,000
= $110,000
The $140,000 is come from
= $875,000 × 16%
So the 22% is come from
= $110,000 ÷ $500,000
Answer:
Amount allocated to cost of goods sold = $2,520
Explanation:
Total inventory held during the complete month.
Beginning = 33 units @ $21 = $693
7 July = 116 units @ $22 = $2,552
22 July = 17 units @ $24 = $408
Closing inventory = 53 units.
Under LIFO method, there is sale of inventory which was last bought or purchased.
Here, as per LIFO,
Total units = 33 + 116 + 17 = 166 units.
Units in closing inventory = 53 units.
That means, 33 units from opening and 20 units from purchases made as on 7 July
33 units @ $21 = $693
20 units @ $22 = $440
Total carrying value of closing inventory = $1,133
Therefore, amount allocated to cost of goods sold = 17 units @ $24 and 96 units @ $22
= $2,520
Answer:
functional representative
Explanation:
A marketing research is most likely to serve as a functional representative in a new product development team.
Market research are conducted to know the viability of new goods and services in the market before it is launched. It is based on unbaised opinion of customers. It help the company to understand the target customer, pricing, other expectation of customer, which is extremely important in designing and developing new product. Therefore, market research serve as functional representative.
