Answer:
a. $87,750.56
b. Accept the investment, because it gives a positive net present value.
Explanation:
the net present value is the today`s value of future cash flows. We determine the net present value by discounting the future cash flow using the required return or the cost of capital.
Using a Financial calculator this can be determined as :
- $185,000 CF0
$ 87,000 CF 1
$ 46,000 CF 2
$ 72,000 CF 3
$ 132,000 CF 4
$ 41,000 CF 5
i/yr = 12%
Then, SHIFT NPV gives $87,750.56
We accept an investment only and only if it has a positive net present value.
B will be the most efficient while keeping everyone happy
Answer:
I recommend to change to an hybrid strategy
Explanation:
If you have almost nonexistent profits you have to change the strategy.
Nowadays customers expect to get everything at once: differentiated, high-quality products combined with excellent service at a low price. Customer expectations require companies to adopt a multidimensional strategic approach. Hybrid strategy integrate cost and differentiation advantages, so this could be a way to respond to these changes. Modern production technologies and organizational structures helps to achieve both high quality and productivity at the same time.
Some of the benefits of this strategy are,
- Can increase market share because of the differentiation
- Product innovation
- Increase of profits ( you can offer your product at a higher price)
he exchange of money and the receipt of the item is mutual consideration for the transaction. In every single agreement, there must be consideration in order for the agreement to be legally binding; it is a critical part of contract formation. ... In other words, each person in a contract must promise to do something.
Answer:
The correct answer is letter "B": 180.
Explanation:
During the first year a business operates, companies can elect to deduct up to $5,000 from their costs. If the costs are higher than $50,000, the deduction of $5,000 will be reduced by the exceeding amount. However, that exceeding amount can be amortized for up to 15 years (180 months).
