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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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Excel provides _____ in categories such as financial management and budgets.
a_sh-v [17]

Excel provides <u>Expenses</u> in categories such as financial management and budgets.

Excel is a Microsoft Office application designed to carry out variation functions, including financial analysis.

Microsoft Excel can be used in many ways. When it comes to finances, it can be used for budgeting or costing before a product or project is made, where each expense is categorized under a different heading.

Microsoft Excel can also carry out a valuation of expenses made, with each expense listed under different categories.

Hence, in this case, it is concluded that Microsoft Excel is a vital tool in financial management.

Learn more here: brainly.com/question/23960987

7 0
2 years ago
Forest Company, which uses a weighted-average process-costing system, had 7,000 units in production at the end of the current pe
Dennis_Churaev [7]

Answer:

B. $115,220

Explanation:

Material A introduced at the beginning of the process = $12.50

Conversion Cost = $6.6*60% = $3.96

Total = $12.5 + $3.96 = $16.46

WIP ending inventory = $16.64*7000 units

WIP ending inventory = $115,220

4 0
3 years ago
The tragedy of the commons results when​ ___________. A. too many public goods are provided.B. common pool resources are overuse
Korvikt [17]

Answer:

The correct answers are:

1)  "B": common pool resources are overused.

2) "C": overfishing in public waters.

Explanation:

1) The tragedy of the commons is a resource-based economic problem that takes place when given resources are overexploited without a clear renewable plan or government restrictions that avoid the extinction of those resources. Those resources are usually scarce.  

2) <em>Overfishing in public waters</em> is a clear example of the tragedy of the commons. Certain types of fish are scarce. The situation worsens when there are no clear limits imposed on fishermen who tend to overexploit fishing for economic purposes. A real-life example of this is the collapse of the North Atlantic Cod fisheries on Canada's eastern coast.

3 0
3 years ago
Multico is a securities dealer whose principal market is with other securities dealers. To take advantage of a perceived opportu
Delvig [45]

Answer:

$50,100

Explanation:

Given that

Acquired value of a financial asset other than principal market = $50,000

Sale value of the identical instrument in principal market = $50,100

Transaction cost = $200

For reporting the fair value, we have to exclude the transaction cost i.e $200 and consider that cost which is to be received while exchanging i.e $50,100

This sale value would be equal to the fair value i.e $50,100 should be reported as a fair value

3 0
4 years ago
The main elements of market structure are _____. perfect competition, monopolistic competition, monopoly, and oligopoly perfect
Bess [88]

Answer:

First one:

perfect competition, monopolistic competition, monopoly, and oligopoly

Explanation:

Hope this helps!!:)

6 0
2 years ago
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