1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Evgen [1.6K]
3 years ago
7

You are considering opening a new plant.

Business
1 answer:
kotykmax [81]3 years ago
6 0

Answer:

1. $275 million

Yes

2. 30%

Explanation:

Calculation for the NPV of the investment opportunity

NPV = –100 + 30/0.08

NPV= $275 million

Therefore the NPV will be $275 million

Yes, Based on the above Calculation they should make the investment

2. Calculation for IRR

IRR: 0 = –100 + 30/IRR

Hence,

IRR = 30/100

IRR = 30%

Therefore the IRR will be 30%

The IRR is great only in a situation where the cost of capital does not go beyond 30%.

You might be interested in
Jaycee Auto Repair has the following budgeted costs for the next year: Time Charges Material Charges Shop employees’ wages and b
liraira [26]

Answer:

Explanation:

Total cost of repairs:

Material = 3,500

Material loading charge = 3,500 * 65% = 2,275

Labor (45hrs* $47per hr) = 2,115

Thus, total cost =(3500 + 2275 + 2115) = $7,890

4 0
3 years ago
Employees with _____, in which work output is exchanged back and forth among individuals, should be organized into teams to faci
Andrew [12]

Answer: Reciprocal Interdependence.

Explanation:

Reciprocal Interdependence is a working situation in which the output of a department of an organization forms the direct input used by another department in the same organization.

In organizations functioning with reciprocal interdependence, the various departments have to form strong interwoven relationship to increase effectiveness and productivity.

3 0
3 years ago
Chamonix Chateau Rentals. You are planning a ski vacation to Mt. Blanc in Chamonix, France, one year from now. You are negotiati
nata0808 [166]

Answer:

The budgeted $ amount is  $13,680.88  

Explanation:

The purchasing power parity formula gives us an idea what an exchange spot rate would be in future period using the below formula:

Future spot rate=current spot rate*(1+US inflation)/(1+French inflation)

current spot rate=$1.3620

US inflation rate is 2.50%

French inflation is 3.50%

Future spot rate=$1.3620*(1+2.5%)/(1+3.5%)

future spot rate=$1.3488

The weekly cost of vacation would also be adjusted for inflation rate in France as follows:

Adjusted price=9800*(1+3.5%)=10143

Hence the cost of the one week rental would be 10143  multiplied by the future spot exchange rate of 1.3488 i.e $ 13,680.88   (10143*1.3488)

7 0
3 years ago
Several months after the reorganization, Jim Umpleby checks in with department managers to see how their employees are handling
Nat2105 [25]

Answer:

The correct answer would be options A and B.

Explanation:

When a company is in financial trouble or faced a bankruptcy, then a process of reorganization is used in an attempt to extend the life of the company through some special arrangement to make the organization successful and progressive.

In this question, Jim wants to know how employees of the company think of the new structure after the reorganization. So the best method to talk to employees directly is to give them a surprise visit and talk to them about the reorganization. Also town hall meetings should be arranged to meet the employees one on one in an informal gathering and talk to them about the reorganization.

6 0
3 years ago
If a stock split occurred, when calculating the current year's EPS, the shares are treated as issued:A. At the end of the year.B
son4ous [18]

Answer:

Correct answer is (C)

Explanation:

At the beginning of the year.

Earnings per share (EPS) is the portion of profit earned by the company that is allocated to each outstanding share of its common stock. It is determined by taking the difference between a company's net income and dividends paid for preferred stock and then divided by the average number of shares outstanding. So if stock split occurred when calculating the current year EPS, the shares are treated as issued at the beginning of the year.

7 0
3 years ago
Other questions:
  • .Which economic condition of the 1920s was amajor cause of the Great Depression?(1) Farm prices rose dramatically.(2) Industry o
    6·2 answers
  • A company usually determines the amount of supplies used during a period by:
    8·1 answer
  • Enrico is a CPA for a large company. Recently, he noticed that the company's accounting records significantly overstated the amo
    10·1 answer
  • A bank has $10 million in vault cash and $110 million in deposits. If total bank reserves were $15 million with $2 million consi
    7·1 answer
  • Altamonte Telecommunications has a target capital structure that consists of 45% debt and 55% equity. The company anticipates th
    8·1 answer
  • Due to erratic sales of its sole product—a high-capacity battery for laptop computers—PEM, Inc., has been experiencing financial
    12·1 answer
  • The black shoe company produces its famous madison shoe, which sell for $60m per pair, the operating income for 2020 is as follo
    13·1 answer
  • Eduardo is currently involved in FBLA (Future Business Leaders of America). He has dreams to work on Wall Street. Assuming he wi
    12·1 answer
  • How do the actions of living on less than you make, saving for large purchases, and sticking to a budget represent deciding acti
    9·1 answer
  • What is the problem with exporting large amounts of central american agricultural products?.
    7·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!