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Degger [83]
2 years ago
12

RainMan Inc. is in the business of producing rain upon request. They must decide between two investment projects: a new airplane

for seeding rain clouds or a new weather control machine built by Dr. Nutzbaum. The discount rate for the new airplane is 9 percent, while the discount rate for the weather machine is 39 percent (it happens to have higher market risk). Which investment should the company select and why
Business
1 answer:
NeX [460]2 years ago
7 0

Complete data:

Year___AirplaneWeather __ Machine

0 _______–90 _________ –900

1 _______500 ___________550

2 _______600 ____ ______600

3 _____________________685

Answer:

Weather machine, because it has a higher equivalent annual cash flow.

Explanation:

Discount rate :

New airplane = 9% = 0.09

Weather machine = 39% = 0.39

Calculate the Equivalent annual cashflow of each :

Using the relation :

New airplane :

(-900+500/1.09) + (600/1.09^2) * 0.09 / (1-1/1.09^2)

(−900+500÷1.09+600÷1.09^2)×9%÷(1−1÷1.09^2)

= 36.2249

Equivalent Annual cashflow of Weather Machine=(−900+550÷1.39+600÷1.39^2+685÷1.39^3)×0.39÷(1−1÷1.39^3)

= 38.0828

Based on the result of the equivalent annual cashflow, the company should opt for investing in weather machine.

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What is one of the best known functions of The Consumer Product Safety Commission?
Alik [6]

Answer:

<u>product recalls</u>

Explanation:

Note, the Consumer Product Safety Commission is an agency that is concerned with consumer product safety in general regardless of whether they are food-related products or not.

Hence, <u>this agency among its stated primary objectives on its official website includes carrying out product recalls where necessary.</u>

8 0
3 years ago
Why might a town decide to issue bonds?
Sophie [7]
A town might decide to issue bonds to B) to build new roads or bridges. A town will achieve a specified amount of money by issuing the bond and there must be an obvious source for returning the bond value until its maturity date. Therefore, building projects or other projects related to the town's infrastructure would be the most appropriate reason for a town to issue bonds.
8 0
3 years ago
According to the AAPC Code of Ethics, which term is NOT listed as an ethical principle of professional conduct?
Tcecarenko [31]

Answer:

The correct answer is letter "E": Efficiency.

Explanation:

The American Academy of Professional Coders (AAPC) is the organization in the U.S. in charge of certifying administrative workers of the healthcare system such as <em>billers, coders, </em>and <em>practice managers</em>. The certifications the AAPC provides are <em>medical coding, medical auditing, physician practice management</em>, just to mention a few.  

Within its code, the AAPC establishes five (5) principles of professional conduct which are <em>integrity, respect, commitment, competence, </em>and <em>fairness</em>. Efficiency is not one of them.

7 0
3 years ago
To determine the potential of a specific market segment an organization makes predictions based on a specific relevant time fram
galina1969 [7]

Answer:

<em>Sales Data mining</em>

Explanation:

Data mining <em>is a method that businesses use to make useful knowledge about raw data.</em>

Companies can learn more about their customers by using technology to scan trends in large batches of information to create more effective marketing campaigns, increase revenue and decrease costs.

Data mining is based on efficient data collection, storage and processing of computers.

7 0
2 years ago
Mary Willis is the advertising manager for Sheffield Shoe Store. She is currently working on a major promotional campaign. Her i
Setler [38]

Answer:

If Mary's idea is implemented the break-even point would increase from 16,000 units to 21,800 units

Explanation:

<em>The break-even point is the level of activity where a business makes no profit or loss. At this level of activity, the total contribution equals the total fixed costs. </em>

<em>To calculate the break even point in units, we use the formula below: </em>

<em>Break-even point = Fixed cost for the period / selling price - variable cost</em>

Current break-even point = 128,000/(20-12)

                                      = 16,000  units

With Mary's idea, the break-even point will be

New break-even point = ( 128,000+ 24600)/(19-12)

                                    = 21,800  units

If Mary's idea is implemented the break-even point would increase from 16,000 units to 21,800 units

8 0
2 years ago
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