Answer:
a) Present value of the investment: $198,936
b) if the present worth of the investment which are discounted at MARR rate is positive, the investment is worth investing, while if the present value of the investment is negative, Investor should not invest.
c) As calculated in (a), present value of the investment is $198,936, Bailey should buy the gang punch
Explanation:
Please find detailed of calculation in (a) which is shown as below:
Present value = Present value of saving in raw material - Present value of increase in labor cost - Initial investment = [ (12,250/ 5%) x (1-1.05^-15)] - [ (3,200/ 5%) x (1-1.05^-15)] - 105,000 = $198,936.
Answer:
The answer is options A) and B)
A) learning the basic communication skills of the residents of the areas they are serving:
B) a multicultural clientele.
Explanation:
In crisis periods like the one we are currently experiencing as a result of the Covid-19 Pandemic, It is of utmost importance that the recruitment, screening, orientation, training, evaluation, and retention of crisis workers deal with the reality of:
A) learning the basic communication skills of the residents of the areas they are serving: this procedure takes place during the orientation, training and evaluation stage.
B) a multicultural clientele: The accurate knowledge of multi-cultural clientele guides the order of recruitment in the sense that, workers are properly assigned to the area that matches their experience, skill set and cultural inclination.
Answer:
It can purchase at most, $18.13 per share.
Or 72.52 millions for the total 4,000,000 shares
Explanation:
We are given with the present value of the merger at Craftworks discount rate. The shares can be purchase at most at the same level of the present value of the increase in the free cash flow.
That way, the net present value will be zero and the merger will yield the 16% required.
72,520,000 Millions
4,000,000 shares outstanding
price per share 18.13
The crafworks shares can be purchase at most for 18.13 above this, it would yield the 16% required
Currently the share are at 16.25 so it could be possible to do the take-over
I think it's C
I hope it helped you!
Answer:
B, A
Explanation:
A: 16% = 1.0F + 6%; F = 10%; B: 12% = 0.8F + 6%: F = 7.5%; thus, short B and take a long position in A.
