Answer:
Year Cashflow [email protected]% PV
$ $
1 150 0.8929 134
2 150 0.7972 120
3 150 0.7118 107
4 250 0.6355 159
5 300 0.5674 170 6 600 0.5066 <u>304 </u>
<u> 994</u>
Explanation:
In this case, we will discount the cashflow for each year at 12% per annum. The discount factor can be obtained by using the formula (1 + r)-n. Then, we will multiply the cashflows by the discount factors in order to obtain the present values. All the present values will be added up.
Answer:
Hawthorne effect
Explanation:
The Hawthorne effect refers to a reaction of the workers included in this experiment where their behavior will be modified (their productivity increased) simply because they know they are being observed. The study should be about how changes in the environment affect productivity, but what really affects productivity is the fact that the workers know they are being part of the study.
In the original Hawthorne experiments, if lighting was increased, productivity increased, but if lighting decreased, productivity also increased. So the changes in productivity had nothing to due with lightning conditions, but rather the fact that the workers were being part of an experiment.
Explanation:
10%×1.2+30%×0.8+40%×1.1+20%×1.5=12%+24%+44%+30%=1.1?
Answer: The cost of capital for a firm with no debt in its capital structure.
Explanation:
Leverage in finance refers to the use of debt. Unlevered capital therefore would refer to capital that is without debt which means that an unlevered cost of capital is one with no debt in its capital structure.
Companies with such a capital structure derive their capital 100% from Equity and as such do not pay interest. This means however, that they will not benefit from the tax shields that interest payments offer.
Answer:
$60 per unit
Explanation:
Total overheads:
= Overheads of fabrication department + Overheads of assembly department
= $90,500 + $109,700
= $200,200
Total labor hours:
= Blinks + Dinks
= (1,013 × 4) + (1,859 × 5)
= 4,052 + 9,295
= 13,347
Overhead rate per hour = Total overheads ÷ Total labor hours
= $200,200 ÷ 13,347
= $15 per hour
Total overhead cost for blinks:
= Total hours for blinks × rate per hour
= 4,052 × $15 per hour
= $60,780
Overhead cost per unit for Blinks:
= Total overhead cost for blinks ÷ Total units
= $60,780 ÷ 1,013
= $60 per unit
