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Novosadov [1.4K]
3 years ago
12

The Geostar Company, leading manufacturer of wireless communication devices, is considering three cost-reduction proposals in ts

Setch job-shop manufacturing operations. The company hes already calculated rates of return for the three projects, along with some incremental retes of return, as given in Table.
A denotes the do-nothing alternative. The required investments are $420,000 for A $550,000 for A and $720,000 for A . If the MARR is 15%, what system should be selected?

Incremental Investment Incremental Rate of Return (%)
A1- Ao 18
A2- Ao 20
A3- Ao 25
A2- A1 10
A3- A1 18
A3-A2 23
Business
1 answer:
S_A_V [24]3 years ago
7 0

Answer: Alternative 3 will be selected.

Explanation:

The system that should be selected is the alternative that is better than the other alternatives by being higher than MARR if selected.

First compare A1 to A0

The rate of return here is 18% which is higher than the MARR of 15% so Alternative 1 should be chosen over A0 which is to do nothing.

Compare A1 to A2

If A2 is chosen over A1, the incremental return is 10% which is less than the MARR of 15% so A2 should not be chosen over A1. A1 should instead be chosen over A2.

Compare A1 to A3

If A3 is chosen over A1 then the incremental return would be 18%. This is higher than the MARR of 15% so Alternative 3 should be chosen over Alternative 1.

Alternative 3 should be chosen over A1 which should be chosen over A2 and A0.

A3 will therefore be selected.

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Suppose you believe that Delva Corporation's stock price is going to decline from its current level of $82.50 sometime during th
Yakvenalex [24]

Answer:

B. $1,989.75

Explanation:

Cost of option (C) = $510.25

Option selling price (Po) = $85 per share

Share price when selling (Ps) = $60 per share

Number of shares (n) = 100 shares

Since the option allows you to sell shares that are valued at $60 for at $85 each, by selling 100 shares, your total earnings are:

E=(P_o-P_s)*n\\E=(\$85-\$60*)100\\E=\$2,500

To find the pre-tax net profit (P), subtract the amount paid for the options from your earnings:

P=E-C= \$2,500-\$510.25\\P=\$1,989.75

6 0
3 years ago
Public opinion suggests that overall, americans' commitment to the country and its core institutions is
ivanzaharov [21]
<span>Public opinion suggests that overall, Americans' commitment to the country and its core institutions is strong. Although the United States is composed of 50 states, it remains to be united in its cause. Until now, it is considered to be one of the most powerful countries in the world. This has been the case due to the Americans' strong sense of patriarchy.  </span>
3 0
3 years ago
uan Pablo and Zak are competitors in a local market. Each is trying to decide if it is better to advertise on TV, on radio, or n
Colt1911 [192]

Answer: Advertise on radio and earn $14,000

Explanation: Dominant strategy may be explained as the tactics or option which works best for a particular firm and seems to give the firm an edge abive other competitors.

Since both are following their dominant strategy, even though advertising on TV seems more lucrative if only one of the advertise, by the time both of them place TV advert, profit falls to $8000. therefore the strategy who gives the highest return when both thread the same advertising path is the radio advert, which gives a return profit of $14,000. Therfore, Uan Pablo should advertise on radio and earn a profit of $14000

6 0
3 years ago
Strategic alliances refer to a.Multinational firms that have as many different product variations, brand names, and advertising
pentagon [3]

Agreements between two or more independent firms to cooperate for the purpose of achieving common goals such as a competitive advantage or customer value.

Answer: Option D.

<u>Explanation:</u>

Strategic alliance is the alliance of two or more firms or companies with each other. This alliance has been formed by tow or more companies with each other in order to achieve common goals.

But this does not mean that these firms and companies will give up their independence in forming their alliance. The goals for forming this is to earn profits and get access to the market.

3 0
3 years ago
Which of the following bases of power emphasizes threatening or actual punishment?
gizmo_the_mogwai [7]
<h2>Hello!</h2>

The answer is C. Coercive.

<h2>Why?</h2>

According to the bases of power, coercive power means that someone can punish someone who deserves it when it's needed, punishment can be just punishment but it can also mean serious actions as demoting, restricting privileges or in the last instance, firing people.

Coercive power can be a problem if it's applied to everyone, every time, the result of coercive actions applied in an inappropriate way could result in useful people resignations. That's why coercive tools are the last resort if corrections are needed.

Have a nice day!

6 0
3 years ago
Read 2 more answers
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