7% of 300 = 21
7% of 321 = 22.47
7% of 343.47 = 24.04
7% of 367.51 = 25.72
$393.23 (or somewhere close to it, since I rounded it every time)
The NPV is positive, therefore, this order can be placed.
<h3>How to calculate the NPV?</h3>
The calculation of probability of default will be:
= 1 / 200 = 0.005
We use NPV formula to find out whether the order should be filled or not
NPV = -Variable cost per unit +[(1-π)(price of equipment/1+percentage of return)]
= -$1.6 million +[(1-0.005)($1.725m/1.018)]
= -$1.6m + $1.6860
= 0.0860 million
As NPV is positive this order can be placed.
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Answer:
multiply the givens. use a calculator
The question is incomplete, the complete question is;
A grocer has 18 kg of black tea worth $3.5 per kg. She wants to mix it with green tea worth $2.6 per kg to sell the mixture at $2.9 per kg. How much of green tea should she use?
Answer:
36
Step-by-step explanation:
Let the weight of the green tea used be x kg.
From the question:
We have:
18 kg of black tea at $ 3.5 per kg. Thus total cost of black tea is 18 x 3.5 = $ 63
Cost of green tea is $2.6 per kg. Total cost of green tea is 2.6 * x = $2.6x
Total weight of the mixture is 18 + x kg.
Total cost of the mixture is = $2.9 (18 + x)
Thus,
Total cost of black tea + total cost of green tea = Total cost of the mixture
$63 + $2.6 x = $2.9 (18 + x)
$63 + $2.6x = $52.2 + $2.9x
63 – 52.2 = 0.3 x
10.8 = 0.3 x
x = 10.8/0.3
x = 36
36 kg of green tea is needed