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tatiyna
3 years ago
5

Houston Fashions is considering a new product line that would require an investment of $ 140,000 in fixtures and displays and $

180,000 in working capital. Store managers expect the following pattern of net cash inflows from the new product line over the life of the investment.
Year Amount
1 ......... $70,000
2 ......... 78,000
3 ......... 72,000
4 ......... 56,000
5 ......... 50,000
6 ......... 48,000
7 ......... 44,000
a. Compute the payback period for the proposed new product line. Houston Fashions requires a four- year pre-tax payback period on its investments. (Round to one decimal point.) Should the company make this investment? Explain.
b. Should Houston Fashions use any other capital project evaluation method(s) before making an investment decision? Explain.
Business
1 answer:
steposvetlana [31]3 years ago
6 0

Answer:

4.88 years

other methods should be used because payback method does not account for the time value of money

Explanation:

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Bad picture, but a real Burberry bag? Haven't seen any in this style/shape. ​
kaheart [24]

Answer:

Most likely counterfeit

Explanation:

A genuine Burberry bag has better material used, which is not the case with the bag in the picture. Also, the horseman print is never put on the signature checked print - it is always placed next to the name "Burberry London". Also, that logo is obsolete today, as Burberry replaced their signature Burberry logo with a more generic, bold font logo.

8 0
3 years ago
Many manufacturers have quality control programs that include inspection of incoming materials for defects. Suppose a computer m
zimovet [89]

Answer:

Explanation:

There are total 5 batches and two boards are selected from each batch for inspection.

Let the boards are numbered from 1 to 5.

If the selected boards are 1 and 2, then it is represented in pair as (1, 2).

If the selected boards are 1 and 3, then it is represented in pair as (1, 3).

Similarly, other pairs can be obtained.

a) Let X be the number of defective boards observed among the two inspected.

If the boards 1 and 2 are the only defective boards in a lot of five, then

(1,2),x=2; (1,3),x=1; (1,4),x=1; (1,5),x=1;

(2,3),x=1; (2,4),x=1; (2,5),x=1;

(3,4),x=0;\ (3,5),x=0;\ (4,5),x=0.(3,4),x=0; (3,5),x=0; (4,5),x=0.

P(X=0)=  3/10 =0.3

P(X=1)={6 \over 10}=0.6P(X=1)=  6/10 =0.6

P(X=2)={1 \over 10}=0.1P(X=2)=  1/10 =0.1

b)

x                  0               1                    2

p(x)            0.3           0.6                0.1

​

​μ  X  =0⋅0.3+1⋅0.6+2⋅0.1=0.8

σ  X ² =(0−0.8)²  ⋅0.3+(1−0.8)²  ⋅0.6+(2−0.8)² ⋅0.1=0.36

μₓ=0.8, σX  =0.6

 

​

5 0
3 years ago
You have been managing a $5 million portfolio that has a beta of 1.45 and a required rate of return of 9.975%. The current risk-
Gre4nikov [31]

Answer:

8.934%

Explanation:

r(m) = r(f) + [b × r(p)]

r(m) = expected return = 9.975%

r(f) = risk free rate = 2%

b = beta = 1.45

r(p) = risk premium

so,r(p) = (9.975 - 2) ÷ 1.45

           = 5.5%

for portfolio,

r(m) = r(f) + (b1 × w1 + b2 × w2) × r(p)

b1 = 1.45, w1 = (5 ÷ 5.5), b2 = 1.25, w2 = (0.5 ÷ 5.5)

r(m) = 2 + [1.45 × (5/5.5) + 1.25 × (0.5/5.5)] + 5.5

      = 2 + 1.32 + 0.114 + 5.5

      = 8.934%

6 0
3 years ago
Select the correct answers.
Art [367]

Answer: line extension

Explanation:

The action whereby the company plans to introduce new products in the market within its existing product category is referred to as line extension.

Line extension occurs when the brand name for an established product is used for a new item that is in same product category. This can be in form of added ingredients, colors, new flavors etc. An example is a manufacturer of soft drink who adds "apple flavor"manufacturer to its existing "orange flavor"

7 0
3 years ago
"tom is employed by acme industries and is covered by its group long-term disability plan. the company pays 80 percent of the pr
Mamont248 [21]
Sorry sorry. I don't know
8 0
3 years ago
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