Answer: He should decline production of the machine.
Explanation:
Analyzing the problem, we can determine if he should proceed or not by calculating the Net present value. That is present value of the machine in terms of perpetuity as it will be used forever and the cost incurred in its production.
Given the following ;
To manufacture $200 = 1 year, meaning
Amount or yearly payment = $200
Cost of machine = $2,000
Interest rate(r) = 11.5% = 0.115
Recall;
Present the value if perpetuity ;
(Payment per period ÷ rate)
= $200 ÷ 0.115 = $1739.13
Net present value = $1,739.13 - $2000 = - 260.87
Given the negative value of NPV, the cost outweighs the benefit, hence, he should decline.
When the fed sells bonds to financial institutions, new money moves directly "out of the loanable funds market".
The Federal Reserve System,sometimes alluded to as the Federal Reserve or essentially "the Fed," is the national or central bank of the United States. It was made by the Congress to give the country a more secure, more adaptable, and more steady fiscal and budgetary framework. The Federal Reserve was made on December 23, 1913, when President Woodrow Wilson marked the Federal Reserve Act into law. Today, the Federal Reserve's obligations fall into four general zones.
They should be extremely close, since corporate image is what people think of your brand :)
Answer:
In short, sustainability in business refers to the effect that companies have on the environment or society. A sustainable business strategy aims to positively impact one or both of those areas, thereby helping address some of the world's most pressing problems, such as climate change and income inequality.
Explanation:
yeah
Obviously, Mr Timothy’s position within the company is Chief Financial officer
Chief Financial officer is the officer responsible for management of company's finances and top-level budgets.
So, as the Chief Financial officer, his responsibility includes:
- creating the budget for a fiscal year
- creating a cost-profit analysis report
- identifying avenues for possible cost reduction in the budget
In conclusion, Mr Timothy’s position within the company is Chief Financial officer
Read more about CFO
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