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Naily [24]
4 years ago
13

Expando, Inc., is considering the possibility of building an additional factory that would produce a new addition to their produ

ct line. The company is currently considering two options. The first is a small facility that it could build at a cost of $7 million. If demand for new products is low, the company expects to receive $9 million in discounted revenues (present value of future revenues) with the small facility. On the other hand, if demand is high, it expects $14 million in discounted revenues using the small facility. The second option is to build a large factory at a cost of $8 million. Were demand to be low, the company would expect $9 million in discounted revenues with the large plant. If demand is high, the company estimates that the discounted revenues would be $13 million. In either case, the probability of demand being high is .30, and the probability of it being low is .70. Not constructing a new factory would result in no additional revenue being generated because the current factories cannot produce these new products.
a.
Calculate the NPV for the following: (Leave no cells blank - be certain to enter "0" wherever required. Enter your answers in millions rounded to 1 decimal place.)

Plans NPV
Small facility $ million
Do nothing million
Large facility million
b. The best decision to help Expando is
to build the large facility.
to build the small facility.
to do nothing.
Business
2 answers:
Yuliya22 [10]4 years ago
4 0

Answer:

D

Explanation:

aleksandrvk [35]4 years ago
4 0

Answer:

B

Explanation:

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abruzzese [7]

Answer:

300 A

Explanation:

(SQ - AQ) SP

(6000 - 6300)1

300 A

It means that actual quantity produced is worse than expected quantity.

5 0
3 years ago
Merger Co. has 10 employees, each of whom earns $2,250 per month and has been employed since January 1. FICA Social Security tax
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Answer:

March 31

Dr. Payroll Tax Expense: 3071.25

Cr. FICA- Social security taxes payable:

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Cr. FICA- Medicare taxes payable:

326.25

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1215

Cr. FUTA- Federal unemployment taxes payable: 135

Explanation:

March 31

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Macroeconomics deals with the short-run variations in economic growth that make up the business.
madam [21]

Macroeconomics deals with the short-run variations in economic growth that make up the business cycle

This is further explained below.

<h3>What is Macroeconomics?</h3>

Generally,  The study of an economy's performance overall, structure, behavior, and judgment is the domain of macroeconomics, a subfield within the discipline of economics.

The increase of economic activity is followed by periods of contraction, which together make up a business cycle.

These shifts have repercussions not just for the well-being of the general population but also for the operations of private organizations.

Business cycles are a sort of variation that may be observed in the overall economic activity of a country.

A business cycle is a cycle that consists of expansions happening at about the same time in numerous economic activities, followed by contractions that are equally widespread in nature.

In conclusion, The business cycle is the primary focus of macroeconomics, which analyzes the short-term fluctuations in economic growth that occur throughout it.

Read more about  Macroeconomics

brainly.com/question/28424197

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As a factor of production, how is capital created? A. By adding land to entrepreneurship B. By adding human labor to land C. By
Dennis_Churaev [7]

Answer:

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Explanation:

By adding human labor to land

7 0
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This participative style of leadership suggests that Gary is a <u>"democratic" </u>leader.


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Everybody is given the chance to take part, thoughts are traded unreservedly, and talk is energized. While the majority rule process tends to center around gathering equity and the free stream of thoughts, the pioneer of the gathering is still there to offer direction and control. The democratic leader is accused of choosing who is in the gathering and who gets the opportunity to add to the choices that are made.  

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