it's half a year out of 5, so 1/10 of the useful lifetime of the van
$61,000 - $4,900 is $56.1000
one tenth of that will be what we are looking for, so option b. should be just right to fit here
Answer: False
Explanation:
This seems to me like a True or False question and the answer would be False.
Payback period is calculated on the basis of the timing of cash flows and since we do not know the useful life of Project B neither do we know the timing of it's cash flows, we cannot say for certain that Project A has a shorter Payback period.
For example, the initial investment could be $5 million for instance but Project A only pays $10 million on its 5th year whereas Project B had a useful life of 4 years and paid $2 million each of those years. Meaning it would have paid back before the end of the 3rd year.
If you need any clarification do react or comment.
Here's the options that completes the question:
A. building a state-of-the-art facility to fully capture scale economies via an export strategy.
B. using export, licensing, or franchising strategies so as to minimize risk and capital investment.
C. locating buyer-related activities in all countries where it sells its product.
D. dispersing its activities among various countries in a manner that lowers costs or else helps achieve greater product differentiation and transferring competitively valuable competencies and capabilities from its domestic operations to its operations in foreign markets.
E. avoiding the use of strategies that entail coordinating its domestic strategic moves with its strategic moves in the various foreign markets that it enters.
Answer:
D. dispersing its activities among various countries in a manner that lowers costs or else helps achieve greater product differentiation and transferring competitively valuable competencies and capabilities from its domestic operations to its operations in foreign markets
Explanation:
A key condition that makes a firm achieve competitive advantage or a favourable business position is it's costs and product design.
If a firm can lower it's cost in a foreign market while also maintaining quality just as it is has done in it's domestic market then it stands a better chance of success.
For example, if a firm in the clothing line industry decides to expand its operations to a foreign market eg Africa.
A key factor in determining its success is its ability to lower its cost in the foreign market as compared to competitors, while also achieving the same quality standards of products.
Answer:
11,000
Explanation:
The breakeven point is the number of units that must be sold such that the total sales becomes equal to the total cost. The total cost is made of the fixed and variable cost.
Given
selling price = $15.00 per unit
Fixed expenses total = $51,000 per year
Breakeven units = 8500
let the variable cost per unit be y
15(8500) = 8500y + 51000
8500y = 127500 - 51000
y = 76500
/8500
y = $9
To make a profit of $15,000, let required sales unit be T
15T - (51000 + 9T) = 15000
6T = 15000 + 51000
6T = 66000
T = 11,000
To make a profit of $15,000, sales in unit must be 11,000
