Answer:
A. Compute labor productivity under each system. Use carts per worker per hour as the measure of labor productivity.
- old system = 70 carts / 6 workers = 11.67 carts per worker
- new system = 76 carts / 5 workers = 15.2 carts per worker
B. Compute the multifactor productivity under each system. Use carts per dollar cost (labor plus equipment) as the measure.
- old system = 70 carts / ($108 + $30) = 0.51 carts per dollar
- new system = 76 carts / ($90 + $41) = 0.58 carts per dollar
C. Comment on the changes in productivity according to the two measures.
- The new system is more productive and efficient since it uses less workers to produce a higher output. The additional costs of implementing the new system are lower than the cost of employing more workers.
Explanation:
Multi factor productivity = total output / (cost of wages + material cost + overhead cost)
Answer:
Explanation:
First, find the YTM of the bond (rD), you can do this with a financial calculator using the following inputs;
Maturity of the bond : N = 20
Annual coupon payment; PMT = 8%*1000 = 80
Face value; FV = 1000
Price of the bond ; PV = -1,050
then CPT I/Y = 7.51% (this is the Pretax cost of debt; the rD)
Next, find the cost of equity (rE) using CAPM;
CAPM; r = risk free + beta (Market risk premium)
rE = 0.0450 + 1.20(0.0550)
rE = 0.0450 + 0.066
= 0.111 or 11.1%
Next, WACC formula = wE*rE + wD*rD(1-tax) whereby;
w = weight of..
rD= pretax cost of debt
WACC = (0.65*0.111) + [0.35*0.0751(1-0.40) ]
WACC = 0.07215 + 0.015771
= 0.0879
Therefore, WACC = 8.79%
Answer:
a wage at which the number of people willing to work equals the number of workers firms are willing to hire
Explanation:
Labor market equilibrium is where the demand curve for labour interests the supply curve for labour. At this point, the wage rate is the wage at which the number of people willing to work equals the number of workers firms are willing to hire
Please check the attached image for a graph depicting equilibrium in the labour market
Answer:
e) Increase the required rate of return used to evaluate the project to reflect the higher risk of the project
Explanation:
As per the basic concept of investment, "higher the risk, higher the return".
Thus, an investor assumes a higher risk only in the scenario wherein the expected return would be commensurate with such risk. Investor would only invest in a risky asset when the return derived can compensate him for the excess risk assumed.
Required rate of return is an investors expectation of return from a project also referred to as the cost of capital.
So for the purpose of evaluating the project, the investor should use a higher required rate of return to signify higher risk which would reveal the true viability of the project.
Umm... I can't find the choices... So, those are the choices I made up that are correct to your question.
- Spills covering grounds or falling hazards, such as blocked paths or cords going over the ground.
- Working from heights, including ladders, scaffolds, roofs, or an elevated workspace.
- Unguarded device and moving machine pieces; guards dismissed or moving pieces that a worker can unintentionally touch.
