The government can make money by borrowing from its population in the form of governmental bonds.

A firm is considering the purchase of a $500,000 machine for its business. The machine is expected to increase sales by $237,000

d1i1m1o1n [39]

Answer:

c. Reject the project because the NPV is negative $120,921

Explanation:

As we know that the depreciation is a non-cash expense so here we need to add the depreciation expense again

Now the cash inflow would be $100,000 each year i.e. for 5 years

And, the initial investment is $500,000

Now we have to use the formula of NPV in an excel by using the NPV function

=NPV(rate,Year1 to Year5 cashflows)-Year0 cashflow

=NPV(10%,Year1 to Year5 cashflows)-500000

=-120,921

So as we can see that the npv comes in negative so the project should be rejected

Therefore the correct option is c.

4 0

3 years ago

How do the characteristics of management decisions-uncertainty, risk, conflict, and lack of structure- affect the decision facin

Oxana [17]

Answer:

Explanation:

The case study about the decision making ability of Stan Eagle from the beginning of the set up of the company till the time he faced problem after its inception. Stan Eagle who runs a skate company was losing money when he and his partner Pete Williams combined the business of clothing with the business of selling skateboards. Stan’s partner decided to sell other types of sports equipment which he thought will generate more revenues for the company. But Stan was disturbed as he thought it was better to focus on sports that they had most expertise and believed there was a way to bring out profit from those sports. This disturbance led Stan to become confused on whether to listen to his friend or move on with his own decision and eliminate Williams his partner from the business by buying his shares.

Question:

How do the characteristics of management decisions – uncertainty, risk, conflict, and lack of structure – affect the decision facing Stan Eagle?

A. Uncertainty

Uncertainty is a state whereby a decision maker have insufficient information on the consequences of his actions. For Stan Eagle, this uncertainty was a cause for worry whether or not the company will succeed or not as he has no expertise about the new product line. Even if he enters the market with the new products, there is a doubt on how well he can manage the new business as he knows nothing about these sports. Thus, there is a big question whether or not he will make profit from it. The company will surely be operating under conditions of uncertainty with the lack of adequate information and cannot estimate accurately about the results of his actions.

B. Risk

Risk is when the probability of an action being successful is less than 100 percent. If the decision is wrong, one may lose money, time, reputation or other important assets. Thus, accepting William’s proposal is a huge risk to take. It is a fact that risk takers are admired, the reality is that good decision makers prefer to manage risk and minimize it. Stan should accept that decisions have risky consequences, but he should do everything he can to anticipate minimize and control the risk.

C. Conflict

Stan experienced psychological conflict when William offers a new idea for their product line. The conflict happens when he has to deliberate on whether the option is attractive or not. Also, conflict arises between people in the company, Stan and William are partners and they both have different opinions thus bringing forth conflicts between them.

D. Lack of structure

In the case of Stan Eagle, he encountered a non – programmed decision. Stan Eagle's Company faced a dilemma whether it should or should not invest in the new product lines. The idea proposed by Pete Williams is a new area for the company and Eagle has no expertise or experience in this line of business.

4 0

4 years ago

Billy's Hamburger Barn has a single drive-up window. Currently, there is one attendant at the window who takes the order (20

Umnica [9.8K]

Answer:

The map of the current process is found in the attached

The minimum cycle time is 1 min 40 seconds

The longest cycle time is 2 min 35 seconds

The new minimum cycle is 1 min 15 seconds

The new longest cycle time is 2 mins

The potential problem that could surface from splitting the process is that once the customer has finished paying the customer has to wait for about 30 to 55 seconds before the second attendant finishes with packaging,hence ,a queue would likely be formed awaiting the second attendant.

The problem could be solved by ensuring the taking money and packaging takes the same time.

Explanation:

Minimum cycle time=20+55+25=100 seconds=1 minute 40 seconds

The longest cycle time=30+90+35=155 seconds=2 min 35 seconds

The new minimum cycle time=20+55=75 seconds=1 min 15 seconds

Taking customer's money also happened in the first 35 seconds of the 55 seconds above.

The new longest cycle time=30+90=120 seconds=2 mins

Download xlsx

6 0

3 years ago

Explain why and how management is dynamic

vovikov84 [41]

Answer:

Management has framed certain principles, which are flexible in nature and change with the changes in the environment in which an organization exits.

4 0

3 years ago

On September 12, Vander Company sold merchandise in the amount of $8,600 to Jepson Company, with credit terms of 2/10, n/30. The

Mumz [18]

Answer:

The journal entry that Jepson makes on September 18 is:

Account Payable ; Vander Company $8,600 (debit)

Discount Received $172(credit)

Cash $8,428 (credit)

Explanation:

When Vander Company sales to Jepson Company, the following entries will be recorded :

Cost of Sales $5,400 (debit)

Account Receivable : Jepson Company $8,600 (debit)

Merchandise $5,400 (credit)

Sales Revenue $8,600 (credit)

When Jepson pays the invoice on September 18, they settle their account within the discount period and is granted a Cash discount of 2%.

The Entry to be made is as follows in Vander Company :

Cash $8,428 (debit)

Discount Allowed $172 (debit)

Account Receivable : Jepson Company $8,600 (credit)

The Entry to be made is as follows in Jepson Company :

Account Payable ; Vander Company $8,600 (debit)

Discount Received $172(credit)

Cash $8,428 (credit)

Conclusion :

The journal entry that Jepson makes on September 18 is:

Account Payable ; Vander Company $8,600 (debit)

Discount Received $172(credit)

Cash $8,428 (credit)

7 0

3 years ago