Answer:
correct option is a. −$59.03
Explanation:
given data
Old cost of capital (r) 8.00% New cost of capital (r) 11.25%
year 0 1 2 3
cash flow -$1000 $410 $410 $410
solution
we know that here old cost of capital (r) NPV will be
old cost of capital (r) NPV = cash flow 0 year + cash flow × 
put here value
old cost of capital (r) NPV = -1000 + 410 × 
old cost of capital (r) NPV = $56.61
and
new cost of capital (r) NPV will be
new cost of capital (r) NPV = cash flow 0 year + cash flow ×
put here value
new cost of capital (r) NPV = -1000 + 410 × 
new cost of capital (r) NPV = -$2.42
so difference is
Difference = -$2.42 - $56.61
Difference = -$59.03
so correct option is a. −$59.03
I'd assume it'd be the shoulder belt. What were your options?
Answer:
At 9.70% discount rate would you be indifferent between these two plans.
Explanation:
Present Value of Perpetuity = P/r
Present Value of Annuity = P/r[1 - (1 + r)^-n]
$14,000/r = $20,000. /r[1 - (1 + r)^-13]
(1 + r)^-13 = 1 - $14,000/$20,000.
(1 + r)^13 = 10/3
r = 9.70%
Therefore, at 9.70% discount rate would you be indifferent between these two plans.
Current market conditions
Answer:
Business Process Re-engineering is business philosophy that seeks to improve product by eliminating causes of product defects and making quality an all-encompassing organizational watchword.
Hence A is correct
Explanation:
It is an holistic approach to rearranging business and organisation's workflows with a view to identifying sub-optimization and inefficiencies that are deep-rooted in its processes which are cost-consuming but do not add value to business bottom-line(profitability).
Implementing a BPR project is a painstaking effort in that it is a way of telling employees to dump old ways of doing of things which they are probably more comfortable with and embrace change.This is the case as an average human tends to resist change.
