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Lorico [155]
3 years ago
8

Wither Spoon Company requires a new manufacturing facility. It found three locations; all of which would provide the needed capa

city, the only difference is the price. Location A may be purchased immediately for $500,000 cash. Location B may be acquired with an immediate down payment of $100,000 and annual payments of $39,900 at the end of each of the next twenty years. Location C requires $42,500 payments at the beginning of each of the next twenty-five years. Assuming Wither Spoon Company's borrowing costs are 8% per annum, which option is the least costly to the company?
Business
1 answer:
suter [353]3 years ago
6 0

Answer:

$42,500 payments at the beginning of each of the next twenty-five years. Assuming Wither Spoon Company's borrowing costs are 8% per annum

Explanation:

Assuming Wither Spoon Company's borrowing costs are 8% per annum

th e option that is least costly to the company is Location C because it only requires $42,500 payments at the beginning of each of the next twenty-five years.

Hence Location A which may be purchased immediately for $500,000 cash and Location B which may be acquired with an immediate down payment of $100,000 and annual payments of $39,900 at the end of each of the next twenty years are not the best option for the company to choose from which therefore makes LOCATION C the best option for Wither Spoon Company because it save cost as as well the least costly to the company.

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_________ is a management blueprint for developing a product or service to customers that will generate revenue.
kolbaska11 [484]

The commercial enterprise model is a control blueprint for growing services or products for clients so one can generate revenue.

An IT blueprint is a planning device or document that a records generation corporation creates with a view to guiding its priorities, tasks, budgets, staffing, and other IT approach-related initiatives.

By using definition, a blueprint is a drawing up of a plan or model. The blueprint attitude allows you to look at all of the portions needed to collect your commercial enterprise before you begin. one of the maximum hard parts of being an entrepreneur is feeling confident in making choices about strategy and direction.

A blueprint is a -dimensional set of drawings that offers a detailed visual representation of the way an architect wants construction to appear. Blueprints normally specify a construction's dimensions, production materials, and the exact placement of all its additives.

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5 0
1 year ago
1. Imagine you are a mid-level manager for a major international oil company. You have been asked whether an investment in oil e
WARRIOR [948]

Answer:

1. What environmental, social, and political risks might arise in supply chain operations in Haiti?

An enviromental risk is another earthquake. Haiti is a very seismic country, and infraestructure quality is low: it can easily crumble down in the even of a strong earthquake (unlike other highly seismic countries with high quality infraestructure, for example: Japan).

A social risk is the possiblity of workers' revolts. The workers may feel exploited, or not at ease within the company, and decided to revolt. Haiti is a violent country, and the revolt could easily become a full-scale conflict that would result in the closing of most, of all of the firms associated with the supply chain.

A political risk is the possibility of property seizure by the government. Haiti does not rank high in government stability, judicial independence, or property rights protections. A new government could become authoritarian, and decide to seize the firms associated with the supply chain.

2. What are the foreseeable costs and benefits from supply chain operations in Haiti?

Low labor costs: the average per capita income in Haiti is $450, and the poverty rate is over 50%, while the underemployment rate is over 60%. This means that people are willing to work, and will work for very low wages, meaning lower costs accross the supply chain.

Untapped market: Even if Haiti is a very poor country, for the same reason it has a great potential to grow, since poor, developing countries tend to grow faster than advanced nations. If the economy of Haitin turns upwards, the firms along the supply chain will likely benefit from being the first in the new market.

3. How could you ensure that your company’s involvement would play a beneficial role in Haiti’s economic recovery?

Paying fair wages, following the country's laws, avoiding illegal practices such as bribing, and putting aside some of the company's income for social contributions such as donations to schools and hospitals (corporate social responsability).

5 0
3 years ago
The Wyeth Corporation produces three products, A, B, and C, from a single raw material input. Product A can be sold at the split
Degger [83]

Answer:

It is preferable to further process Product A.

Explanation:

Product should be processed further before sale if the net incremental benefits from further processing is positive.

The net incremental benefits from further processing is increase in revenue when further processed less further costs of processing.

Increase in revenue=$58,000-$40,000

                                 =$18,000

Further processing costs=$15,000

Net incremental benefits=$18,000-$15,000

Net incremental benefits=$3,000

Since processing further brings a net benefit of $3,000, Product A should be further processed before being sold.

8 0
3 years ago
Read 2 more answers
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Artemon [7]

The major thing which <em>Eduardo's behavior demonstrates </em>is that:

  • The freedom to own property and keep the profits from work is necessary for the survival of an economy.

<h3>What is Freedom to own property?</h3>

This refers to the individual right which every human where he is able to buy and own land or inherit it from someone, or even get it as a gift and keep it.

With this in mind, we can see that Eduardo is staying in an oppressive country where the tax rates are very high and there are no freedom to own property so he begins to stop investing in the farm and focus on subsistence agriculture.

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8 0
1 year ago
Which one of the following statements is correct? Question 19 options: A longer payback period is preferred over a shorter payba
stich3 [128]

Answer:

The payback period ignores the time value of money.

Explanation:

This could primarily be classified to be amongst the major disadvantages of the payback period that it ignores the time value of money which is a very important business concept. In the other hand, the payback period disregards the time value of money. It is determined by counting the number of years it takes to recover the funds invested. Some analysts favor the payback method for its simplicity. Others like to use it as an additional point of reference in a capital budgeting decision framework.

The payback period does not account for what happens after payback, ignoring the overall profitability of an investment.

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3 years ago
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