Answer:
Explanation:
<em>Classification of activities as value-added or non-non-value-added of Rich Novelty Company:-
</em>
(a) Machine setup - non-value-added
(b) Design engineering - value-added
(c) storing inventory - non-value-added
(d) Moving work in process - non-value-added
(e) Inspecting and testing - non-value-added
(f) Painting and packing - value-added
Notes:-
1. Value--added activities of a company processes that increase the observed value of a product or service to customers.
2. Non-value-added activities of a company processes that decrease the observation value its product or service.
Answer:
Explanation:
Cash flow is 530 , 690 , 875 and 1090 in 1st to 4 th year respectively
discount rate = 10 %
NPV = 530/ 1.10 + 690 / (1.10)² + 875/(1.10)³ + 1090/ (1.10)⁴
= (530x1.10³ + 690 x 1.10² + 875x 1.10 + 1090)/ 1.10⁴
= (705.43 x +834.9 +962.5 +1090)1.10⁴
= 3592.83 / 1.10⁴
= 2453.95
Discount rate 18%
NPV = 530/ 1.18 + 690 / (1.18)² + 875/(1.18)³ + 1090/ (1.18)⁴
= (530x1.18³ + 690 x 1.18² + 875x 1.18 + 1090)/ 1.18⁴
= (870.80696 +960.756 +1032.5 +1090)1.18⁴
= 2039.46
Discount rate 24%
NPV = 530/ 1.24 + 690 / (1.24)² + 875/(1.24)³ + 1090/ (1.24)⁴
= (530x1.24³ + 690 x 1.24² + 875x 1.24 + 1090)/ 1.24⁴
1010.51072+ 1060.944+1085+1090 / 1.24⁴
= 1796.14
Answer:
Nominal rate is 4.4%
Periodic rate is 1.1%
Effective rate is 4.5%
Explanation:
Bank offer the the nominal interest rate to their customer which already includes the inflation effect, so the stated rate is the nominal rate on the investment.
Nominal Interest rate = 4.4%
Interest rate that is calculated for a specific period from an annual rate is periodic interest rate.
Periodic interest rate (Quarterly) = 4.4% x 3 /12 = 1.1%
Effective Interest rate is the actual rate of return that an investor receives including compounding effect. It is expressed in annual term.
Effective Interest rate = ( 1 + 1.1% )^4 - 1 = 4.5%
Answer:
b. Each franchise outlet is probably a carbon copy of every other outlet.
Explanation:
A franchise business is an arrangement where a popular business owner (franchisor) allows a third party ( franchisee)to start and run an independent outlet similar to the franchisor business. The franchisor licenses the franchisee to use their
- Brand name and colors,
- Marketing materials,
- Operating systems and design layouts
- Operating processes and procedures
A franchisee sells similar products at the same price as the franchisor. The franchise outlets have similar looks because of branding, colors, and layout.
Answer:
Beatrix is working in a Matrix approach of structural design.
Explanation:
In a matrix type of approach, individuals from different functional departments work together. They work to achieve a common goal. hey all work under a project manager and this creates a dual-reporting organization structure.
It is a good way to share talent and skills that is in different departments.
In the given situation when Beatrix has one manufacturing manager for Northeast division and one product manager, it is a matrix approach. As it has different departments and different talents of the individuals who are working under Beatrix.
