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Leokris [45]
2 years ago
9

The Chandler Group wants to set up a private cemetery business. According to the CFO, Barry M. Deep, business is "looking up". A

s a result, the cemetery project will provide a net cash inflow of $57,000 for the firm during the first year, and the cash flows are projected to grow at a rate of 7 percent per year forever. The project requires an initial investment of $759,000. The firm requires a 14 percent return on such undertakings. The company is somewhat unsure about the assumption of a 7 percent growth rate in its cash flows. At what constant rate of growth would the company just break even?
Business
1 answer:
Tems11 [23]2 years ago
6 0

Answer: 6.49%

Explanation:

The constant rate of growth where the company would break even will be calculated thus:

Initial investment = Net cash inflow / (14% - g)

759000 = 57,000/(0.14 - g)

where g = growth rate

759000 = 57,000/(0.14 - g)

Cross multiply

759000(0.14 - g) = 57000

106260 - 759000g = 57000

759000g = 106260 - 57000

759000g = 49260

g = 49260/759000.

g = 0.0649

g = 6.49%

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A small grocery store sells fresh produce, which it obtains from a local farmer. During the strawberry season, demand for fresh
nasty-shy [4]

Answer:

(a)The implied cost of shortage per quart is = $4.75

(b) This could be viewed as reasonable figure, because is (approximately) equal to the loss per quart of strawberry.

Explanation:

Solution

Given that:

Mean =μ = 40

Standard deviation =σ = 6

Excess cost= Ce =$0.35

The amount ordered =S₀= 49

Thus

Z =(49 -40)/6

=1.5

Now

From the Table Z, we have the service level which is,

P(X <49 ) = P(Z < 1.5)

= 0.9332

Since we know that,

Service level (SL) =Cs/Cs+Ce

So,

0,9332 =Cs/Cs+0.35

Thus

0.9332Cs + 0.35* 0.9332 =Cs

0.0668Cs =0.32662

Hence

Cs = $4.75

(a) The implied cost of shortage per quart is = $4.75

(b) Therefore,this could be regarded as reasonable figure, because is (approximately) equal to the loss per quart of strawberry.

5 0
3 years ago
If the team leader learns that organizational superiors are unaware of the team’s successes, the leader might initiate an "FYI"
ad-work [718]

Answer:

Advocating

Explanation:

The team leader needs to advocate and represent the team to their organizational superiors (upper management). Sometimes large organizations are too complex and BIG, and lower management has to find a way to make themselves be noticed. For example, he could start writing a newsletter, etc.

8 0
3 years ago
What are the accounting differences between cash and receivables from the perspective of a buyer? A seller? How are these differ
bogdanovich [222]

Answer:

From a buyer's perspective, a sale made on credit represents a liability. While a sale made on cash represents a decrease of current assets.

From a seller's perspective, a sale made on credit or cash increases current assets, but the possibility of a bad debt always exist, therefore, accounts receivables must be periodically adjusted due to bad debts.

If the seller or buyer uses accrual accounting system, the previous description holds, but if they use cash basis accounting, things change a lot. When use cash basis, transactions are recorded only when cash is exchanged, so accounts receivables do not actually increase assets (seller's perspective), and accounts payables do not increase liabilities (buyer's perspective).

6 0
3 years ago
The purchase price and all costs to bring an asset to its desired condition and location for use should be ________.
Nana76 [90]

Answer:

b. capitalized

Explanation:

The purchase price and all costs to bring an asset to its desired condition and location for use should be capitalized.

3 0
3 years ago
You can also improve your messages through stylistic emphasis in sentence structure and word choice. Which of the following styl
kari74 [83]

Answer: Use vivid words.

Label descriptive modifiers.

Position important ideas first or last in a sentence.

Explanation:

The stylistic devices that can be used to achieve emphasis include using of vivid words, labelling descriptive modifiers and also by positioning the important ideas as the first or last in a sentence.

For the readers to be able to picture ones ideas, it is appropriate to use vivid words and also the readers will notice the important ideas when they're placed in either the first or the last part.

Using general terms

4 0
3 years ago
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