Answer:
A. $125
(Supplies + Electricity)
B. $10,300
(Salary lost + Rent amount lost)
C. $10,425
(Add them together)
C. The first step in the screening process for potential markets and sites is to identify the basic appeal of a market.
Identifying whether there is a fundamental demand for a business's product is the first step in looking for potential markets. screening process plays a key role in determining this fundamental appeal.
Then it also helps in choosing where to market or produce goods would be simple if all countries' business environments were the same. Managers could rely on statistics that track the state of the local economy and examine projected returns on investments.
To learn more about screening process refer here:
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Answer: I honestly have no idea im just stupid and i need points so yea im sry bye
Explanation:
Answer:
Testerman Construction Co.
Internal rate of return method in analyzing capital expenditure:
Present value of expenditure = $149,630
Present of cash inflows annuity = $149,630 (using 20% discount rate and present value annuity factor of 3.3251 x $45,000)
NPV = $0 (PV of cash outflow - PV of cash inflow)
Therefore, the IRR = 20%
Explanation:
a) Data and Calculations:
Investment cost = $149,630
Annual net cash flows = $45,000
Investment period = 6 years
Annuity of future cash flows = 3.3251
b) Testerman’s IRR (Internal Rate of Return) is a capital budgeting and analysis tool which determines the discount rate that makes the present value of future inflows equal to the present value of outflows from a project. This IRR helps the managers to determine the projects that add value and are worth undertaking. IRR is based on assumptions. Similar projects with the same IRR will differ in returns due to the differences in timing and the size of the cash, the amount of debts and equity used to generate the returns, and the assumption of a constant reinvestment may which IRR makes.
Answer:
The indifference point is 5,895 units
Explanation:
Giving the following information:
In-house:
Unitary variable cost= $11.5
Fixed cost= 30,000
Buy:
Unitary variable cost= $16.25
Fixed cost= 2,000
<u>To calculate the indifference point, we need to establish the total cost formulas for each option:</u>
In-house:
Total cost= 30,000 + 11.5x
x= number of units
Buy:
Total cost= 2,000 + 16.25x
x= number of untis
<u>Now, we equal both formulas and isolate x:</u>
30,000 + 11.5x = 2,000 + 16.25x
28,000 = 4.75x
5,895 = x
The indifference point is 5,895 units
