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Annette [7]
3 years ago
7

Industrialization Enterprise is considering a three-year project that will require an initial investment of $44,000. If market d

emand is strong, Industrialization Enterprise thinks that the project will generate cash flows of $28,500 per year. However, if market demand is weak, the company believes that the project will generate cash flows of only $1,500 per year. The company thinks that there is a 50% chance that demand will be strong and a 50% chance that demand will be weak. If the company uses a project cost of capital of 12%, what will be the expected net present value (NPV) of this project?
a. $7,172
b. $6,813
c. $8,606
d. $6,096
Business
1 answer:
boyakko [2]3 years ago
6 0
It’s C sorry if i’m wrong then
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The CPI is a measure of the overall cost of goods and services produced in the economy the overall cost of inputs purchased by a
lakkis [162]

Answer:

The overall cost of buying a market basket of goods and services by a typical customer.

Explanation:

The question is incomplete, but I figured that the question is trying to find out the correct meaning of CPI with different options provided. The correct question should be:

<em>The CPI is a measure of </em>

  1. <em>the overall cost of goods and services produced in the economy </em>
  2. <em>the overall cost of inputs purchased by a typical producer </em>
  3. <em>the overall cost of buying a market basket of goods and services by a typical consumer </em>
  4. <em>the overall cost of stocks on the New York Stock Exchange</em>

<em>Which option is correct?</em>

<em />

CPI or Consumer Price Index evaluates the average prices of a basket of consumer goods and services, for instance, medical care, food, and transportation. It is evaluated by analyzing the changes in and averaging the price of each item in the basket of consumer goods and services.

The CPI is usually used especially to discover situations of inflation of deflation.

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2 years ago
Exercise 6A-1 High-Low Method [LO6-10] The Cheyenne Hotel in Big Sky, Montana, has accumulated records of the total electrical c
Nitella [24]

Answer:

1) variable cost = $1.56 per day

fixed costs = $1,395 per month

2) another aspect that increases or decreases electrical consumption is the weather. During very hot days, more people use the air conditioner, which increases electricity costs. Very cold weather will result in a similar increase in electric consumption.

Explanation:

Month Occupancy-Days Electrical Costs

January 1,736 $ 4,127

February 1,904 $ 4,207

March 2,356 $ 5,083

April 960 $ 2,857

May 360 $ 1,871

June 744 $ 2,696

July 2,108 $ 4,670

<u>August 2,406 $ 5,148 </u>

September 840 $ 2,691

<u>October 124 $ 1,588 </u>

November 720 $ 2,454

December 1,364 $ 3,529

variable cost = (highest activity cost - lowest activity cost) / (highest activity level - lowest activity level) = ($5,148 - $1,588) / (2,406 - 124) = $1.56 per day

fixed costs = $5,148 - ($1.56 x 2,406) = $1,395

 

4 0
3 years ago
Argue why a product launch that exceeded expectations may actually be a negative result.
STALIN [3.7K]
About 30 to 45% of new products fail to deliver any meaningful financial return. This typically happens due to a number of reasons, from poor product / market fit, failure to understand customer needs (or fixing a non-existing problem), to a lack of internal capabilities.
4 0
2 years ago
What are the constraints of business legislation?
Reika [66]

Answer:

A business may be constrained by a variety of licensure and other regulatory requirements, based on the industry and activities the business wants to pursue. For example, a lawyer must obtain a legal license in a particular state before he can open a practice in that state.

6 0
3 years ago
Marcos owns 1,500 shares of ABC stock which he purchased at $44 a share. The stock has been steadily decreasing in value and he
ch4aika [34]

Answer:

Market sell order for 1,500 shares

Explanation:

The type of order that Marcos should place is Market sell order for 1,500 shares because he already owns 1,500 shares of the ABC stock in which the ABC stock shares was purchased at $44 per share.

Since the stock has been decreasing in value in which he wants to cut his losses now because the stock price may continue to decrease, the best thing for him to do is to use the Market sell order for the 1,500 shares in order to cut the losses that may arise and to avoid losing all the Total amount of the shares bought which is $66,000 ( 1,500 shares ×$44).

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3 years ago
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