(a) Three uses of the Critical Path Method (CPM) for a project manager: project planning, resource management, and schedule optimization.
(b) Crashing is executed in a project to expedite the schedule by adding resources to critical activities when strict deadlines or unacceptable delays occur.
(a) Three essential uses of the Critical Path Method (CPM) for a project manager are:
1. Project Planning: CPM helps in creating a detailed project schedule by identifying all the project activities, their dependencies, and their durations.
It allows the project manager to determine the critical path, which is the longest sequence of activities that determines the project's overall duration. This information helps in setting realistic timelines and resource allocation.
2. Resource Management: CPM assists project managers in effectively managing project resources. By analyzing the critical path and identifying activities with float or slack, the project manager can allocate resources efficiently.
This ensures that resources are utilized optimally, and potential bottlenecks or resource conflicts are identified and addressed proactively.
3. Schedule Optimization: CPM enables project managers to analyze different scenarios and make informed decisions to optimize the project schedule.This allows for better time management, cost control, and overall project efficiency.
(b) Crashing in a project refers to a technique used to expedite the project schedule by reducing the overall project duration. It involves adding additional resources to critical activities to complete them in less time.
To execute crashing, the project manager must identify the critical path, which represents the activities that directly impact the project duration. By allocating additional resources or increasing their efficiency, the project manager can shorten the duration of critical activities.
However, it is important to note that crashing comes with additional costs, such as overtime pay, hiring additional resources, or expediting procurement. Therefore, the project manager must carefully evaluate the cost and benefit of crashing before implementing it.
Learn more about Critical Path Method (CPM) here:
https://brainly.com/question/33129202
#SPJ11
On January 1, Year 10, Marc Ltd. and Malus Ltd. formed a joint venture called MM Inc. Marc Ltd. contributed equipment with a carrying value of $900,000 and a fair value of $1,500,000 and in return receives a 40% interest in MM Inc. and $400,000 in cash (contributed by the other joint venturer). Assume that the transaction has commercial substance, and the equipment has an estimated useful life of 10 years. On Dec 31, Year 10, MM Inc. reported a net income of $800,000 and declared a dividend of $200,000 Required: For Marc Ltd., prepare the journal entries to record the above events from January 1 to December 31, Year 10.
The journal entries for Marc Ltd. from January 1 to December 31, Year 10, involve the contribution of equipment, receipt of cash and equity interest in MM Inc., recognition of income, and declaration of dividends.
On January 1, Year 10, Marc Ltd. contributed equipment to MM Inc. The journal entries would be as follows:
Equipment (Fair Value) 1,500,000
Accumulated Depreciation 600,000
Cash 400,000
Marc Ltd. Capital Investment 900,000
MM Inc. issued equity interest to Marc Ltd. The journal entry would record the receipt of equity interest and cash:
Investment in MM Inc. 400,000
Marc Ltd. Capital Investment 400,000
At the end of Year 10, MM Inc. reported a net income of $800,000. Marc Ltd. would record its share of the income based on its 40% interest:
Investment in MM Inc. 320,000
Equity in Earnings of MM Inc. 320,000
MM Inc. declared a dividend of $200,000. Marc Ltd.'s share of the dividend would be recorded as a reduction in its investment:
Dividends Receivable 80,000
Investment in MM Inc. 80,000
These journal entries reflect the events related to Marc Ltd.'s involvement in the joint venture MM Inc., including the initial contribution of equipment and cash, recognition of income based on its ownership interest, and the declaration of dividends.
Learn more about journal entries here: https://brainly.com/question/33045014
#SPJ11
The structure of a Change Control Board (CCB) remains the same independently of the project nature. This statement is:
a. False, because multi-tiered CCB may be needed
b. True, because the CCB structure is defined in the Organizational Process Assets
c. True, because it is linked to the organization management
d. False, because CCB is not needed in many projects
The statement "The structure of a Change Control Board (CCB) remains the same independently of the project nature" is False, because multi-tiered CCB may be needed. Option a is correct.
A change control board (CCB) is a committee that has been set up to evaluate and authorize changes to the baseline configuration of a product, service, or result. The structure of a Change Control Board (CCB) does not remain the same regardless of the project nature.
The CCB is a group of people who are responsible for analyzing, tracking, and reviewing changes that have been made to a project. A CCB's duties include determining whether a change should be approved, denied, postponed, or cancelled, as well as ensuring that the requested change is in line with the project's objectives and deliverables.
The CCB's composition varies depending on the nature of the project. The CCB is made up of cross-functional staff who are responsible for their areas of expertise and are committed to the project's objectives.
The CCB structure is described in the Organizational Process Assets, and it is important to note that the structure may differ depending on the project's complexity, organizational structure, and nature.
Therefore, option a is correct.
Learn more about Change Control Board https://brainly.com/question/31810457
#SPJ11
Five commuters A,B,C,D,E, must choose between their own car with a fixed travel cost, or the public bus, where the charge to each user decreases with the number of users. Let ci denote the cost/travel time of using his own car for commuter i∈{A,B,C,D,E} and let cA = 1,cB=3,cC=5,cD=7,cE=9. Regarding the bus, if 1 person uses it his cost will be 10 , if 2 people use it then each of them will have cost 8 , if 3 people use it then each of them will have cost 6 , if 4 people use it then each of them will have cost 4 , while if all 5 people use it then each of them will have cost 2 . Naturally, each player wants to minimize his own cost.
a. Is there any dominated strategy (ies) in this game? If yes, perform an iterated elimination of all dominated strategies. Explicitly mention the sequence in which the corresponding strategies are eliminated and present the resulting game.
b. Find (and clearly present) all pure Nash equilibria (NE) of the game.
c. What is the Price of Stability of this game (assuming that the objective function is the total travel time)?
The iterated elimination of dominated strategies eliminates strategies D and E. Pure Nash equilibria are when ABCE chooses a bus or all choose a car. The price of Stability is indeterminate.
a. To determine if there are any dominant strategies, we compare the costs of using the car and the bus for each commuter. Commuter A's cost of using the car is 1, while the cost of using the bus alone is 10. Therefore, using the car dominates using the bus for commuter A. Similarly, commuter B's cost of using the car is 3, while the cost of using the bus alone is 8.
Hence, using the car dominates using the bus for commuter B. We continue this comparison for all commuters and eliminate the strategies dominated by using the car. As a result, strategy D is eliminated for commuter D, and strategy E is eliminated for commuter E.
b. After eliminating the dominant strategies, we consider the remaining strategies. The remaining strategies for each commuter are as follows: A: Car, B: Car, C: Bus, D: Bus, E: Car. In this case, if commuters A, B, C, and D choose the bus, each with a cost of 6, and commuter E chooses the car with a cost of 9, no commuter has the incentive to deviate from their chosen strategy. This forms a pure Nash equilibrium. Another pure Nash equilibrium is when all commuters choose their own car, as no one has the incentive to switch to the bus.
c. The Price of Stability (PoS) is the ratio of the total travel time in the worst Nash equilibrium to the total travel time in the socially optimal solution. However, without additional information on the travel times or the objective function, we cannot determine the PoS for this game.
To learn more about price click here:
brainly.com/question/33097741
#SPJ11
Suppose the central bank reduces the policy interest rate. In which of the following scenarios will the effect on inflation be the largest? a. Slope of SRAS is steep and the expenditure multiplier is small. b. Slope of SRAS is flat and the expenditure multiplier is large. c. Slope of SRAS is steep and the expenditure multiplier is large. d. Slope of SRAS is flat and the expenditure multiplier is small. Time left 0:50 Consider an economy that has no government. Its consumption function is given by C=429+0.8Y; its planned investment is 20, exports is 100 , and imports is given by M=43+0.3Y. What is the increase in equilibrium GDP if planned investment increased from 20 to 50 ? - Do not enter the $ sign. - Round to two decimal places if required. Answer: Which of the following DOES NOT explain why the aggregate demand curve is downward-sloping? a. An increase in the price level reduces government spending on domestic goods and services. b. all of the options listed here explain why the aggregate demand curve is downward-sloping.
The largest effect on inflation resulting from a reduction in the policy interest rate would occur in scenario c, where the slope of the Short-Run Aggregate Supply (SRAS) curve is steep.
When the SRAS curve is steep, it means that changes in aggregate demand have a significant impact on output and prices in the short run. Additionally, when the expenditure multiplier is large, changes in spending have a magnified effect on the overall economy.
In this scenario, a reduction in the policy interest rate would stimulate investment and consumption expenditure, leading to an increase in aggregate demand. The steep SRAS curve implies that the increase in aggregate demand would have a substantial impact on output, causing it to rise significantly. As a result, the pressure on resources and factors of production would increase, leading to higher prices and inflation.
Moving on to the second question, let's calculate the increase in equilibrium GDP when planned investment increases from 20 to 50 in an economy without government intervention. In this case, we can use the aggregate expenditure (AE) formula:
AE = C + I + X - M,
where C is consumption, I is investment, X is exports, and M is imports.
Given the consumption function C = 429 + 0.8Y, planned investment I = 20, exports X = 100, and imports M = 43 + 0.3Y, we can substitute these values into the AE equation:
AE = (429 + 0.8Y) + 20 + 100 - (43 + 0.3Y).
Simplifying the equation:
AE = 506 + 0.5Y.
Equilibrium GDP occurs when AE equals actual GDP, so we can set AE equal to Y:
Y = 506 + 0.5Y.
Solving for Y:
0.5Y = 506,
Y = 1012.
This is the initial equilibrium GDP. Now, let's calculate the new equilibrium GDP when planned investment increases from 20 to 50:
AE = (429 + 0.8Y) + 50 + 100 - (43 + 0.3Y).
Simplifying the equation:
AE = 536 + 0.5Y.
Setting AE equal to Y:
Y = 536 + 0.5Y.
Solving for Y:
0.5Y = 536,
Y = 1072.
The increase in equilibrium GDP is 1072 - 1012 = 60.
In summary, when planned investment increases from 20 to 50 in an economy without government intervention, the equilibrium GDP increases by 60 units.
Now, let's move on to the explanation of why the aggregate demand curve is downward-sloping. Option b is correct: all of the options listed explain why the aggregate demand curve is downward-sloping.
The aggregate demand curve shows the relationship between the price level and the total quantity of goods and services demanded in an economy. Several factors contribute to the downward slope of the aggregate demand curve:
Wealth Effect: When the price level decreases, the real value of wealth held by households increases. This increase in wealth leads to higher consumer spending, boosting aggregate demand.
Interest Rate Effect: A decrease in the price level reduces the demand for money. As a result, interest rates decline, which stimulates investment and consumption expenditure, increasing aggregate demand.
International Trade Effect: A decrease in the domestic price level makes domestic goods and services relatively cheaper compared to foreign goods. This leads to an increase in exports and a decrease in imports, boosting net exports and aggregate demand.
Expectations: If people expect prices to fall in the future, they may postpone their purchases, reducing current aggregate demand.
Learn more about trade here:
brainly.com/question/1578270
#SPJ11
2. Why would an investor want to forecast exchange rates? A. Investing in a foreign market B. Insider trading C. Trading options D. Municipal bond investment analysis
A. Investing in a foreign market. Forecasting exchange rates is important for investors who are considering investing in foreign markets to anticipate potential currency fluctuations and manage the associated risks.
Investing in a foreign market exposes investors to currency risk due to the fluctuating exchange rates between different currencies. By forecasting exchange rates, investors can make informed decisions about when to buy or sell investments denominated in foreign currencies. This helps them anticipate potential gains or losses resulting from currency movements and manage their portfolio's exposure to currency risk. Accurate exchange rate forecasts enable investors to assess the profitability and risks associated with investing in foreign markets, and make strategic decisions to maximize their investment returns.
Learn more about foreign markets here:
https://brainly.com/question/13211872
#SPJ11
1. Last year Tina Smith (D-Minn) attempted to pass an infrastructure bill that contained a standard requiring a certain percentage of electricity to come from clean sources. Explain three ways this policy falls short of a carbon tax.
2. Why might Joe Manchin of WV, a democrat but from a coal exporting state, be more likely to vote for this bill discussed in the prior question than a carbon tax?
1. Three ways this policy falls short of a carbon tax are:
a. This policy is not as effective as a carbon tax in lowering carbon emissions, as it doesn't directly price carbon. It just mandates a minimum share of electricity from clean sources, without placing an explicit price on carbon emissions. b. The policy is less efficient in terms of the revenue it generates than a carbon tax. A carbon tax generates revenues that can be used for mitigation efforts or returned to citizens as dividends, whereas this policy is just a mandate. c. Unlike a carbon tax, this policy may not cover all sectors that contribute to carbon emissions, such as transportation or industrial production.2. Joe Manchin of WV, a democrat from a coal-exporting state, may be more likely to vote for this bill discussed in the prior question than a carbon tax because he could argue that the bill focuses on clean energy production and doesn't explicitly penalize the coal industry. This policy may be seen as less threatening to coal-dependent states and industries than a carbon tax.
The policy of mandating a certain percentage of electricity from clean sources falls short of a carbon tax because it lacks a direct price incentive to reduce emissions. While the policy focuses on the electricity sector, it may not address emissions from other sectors like transportation and industry, limiting its impact.
Moreover, by prescribing a specific percentage of clean energy, the policy may not promote the most cost-effective solutions as it does not allow market forces to determine the most efficient strategies for emissions reduction. In contrast, a carbon tax imposes a price on carbon emissions, incentivizing reductions across multiple sectors and allowing market dynamics to drive innovation and efficiency in emission reduction strategies.
Joe Manchin, a Democrat from West Virginia, a state heavily reliant on coal exports, may be inclined to support the infrastructure bill with the clean energy requirement rather than a carbon tax because the bill likely includes provisions that promote investments in alternative energy sources and infrastructure projects, which could support the transition away from coal. This approach allows Manchin to protect the economic interests of his state and mitigate potential job losses in the coal industry while still contributing to the broader goal of reducing carbon emissions.
By voting for the infrastructure bill, Manchin can support a more gradual transition towards clean energy while also addressing the economic concerns of his constituents.
Learn more about carbon tax: hhttps://brainly.com/question/28188625
#SPJ11
Edupod is the market leader in the design, supply and distribution of children's furniture, playgrounds, and toys. They have decided to expand their product line and would like to introduce a range of pet toys and furniture. Edupod wants to find out pet owners perceived value of such products and the likelihood of them buying them.
Describe the advantages AND disadvantages of using the following survey modes for Edupod:
(a) in-home survey (2 marks)
(b) mall intercept survey (2 marks)
(c) online survey (2 marks)
(d) telephone survey (2 marks)
For each response, ensure you clearly indicate each part by starting with an (a), (b), (c), and (d).
(a) In-home survey: Advantages - Allows for a more relaxed and personal environment, higher response rates; Disadvantages - Costly, time-consuming, limited reach.
(b) Mall intercept survey: Advantages - Provides access to a diverse range of respondents, immediate feedback; Disadvantages - Potential sampling bias, limited time for in-depth responses.
(c) Online survey: Advantages - Cost-effective, wide reach, convenient for respondents, ability to collect large amounts of data; Disadvantages - Potential for self-selection bias, lack of personal interaction.
(d) Telephone survey: Advantages - Quick data collection, ability to clarify questions, representative sample; Disadvantages - Decreasing response rates, potential for respondent bias, limited in-depth responses.
(a) In-home survey:
Advantages: Allows for detailed product demonstrations, personal interaction, and observation of respondents' home environments. Provides in-depth insights and higher response rates.
Disadvantages: Time-consuming, expensive, limited sample size, potential bias due to the presence of interviewers.
(b) Mall intercept survey:
Advantages: Convenient access to a diverse range of respondents, potential for immediate feedback, higher response rates compared to other modes in public spaces.
Disadvantages: Limited time and attention from respondents, potential sampling bias, lack of privacy, difficulty in capturing detailed responses.
(c) Online survey:
Advantages: Cost-effective, wide geographic reach, convenient for respondents, easy data collection and analysis, potential for personalized targeting.
Disadvantages: Potential for self-selection bias, limited control over respondents' attention and honesty, lack of non-verbal cues, digital divide may exclude certain demographics.
(d) Telephone survey:
Advantages: Wider reach compared to in-person surveys, cost-effective, potential for random sampling, real-time responses, ability to clarify questions.
Disadvantages: Declining response rates, potential for response bias, limited attention and engagement from respondents, exclusion of certain demographics (e.g., cell phone-only households).
Learn more about rates here:
https://brainly.com/question/30584212
#SPJ11
A stock has a beta of 1.42, the risk-free rate is 2.53% and the market premium is 2.79\%. The stock will pay a $2.47 as dividend for 30 years (starting a year from now) and after that nothing (firm will liquidate). What is the price of the stock? Round the answer to two decimal places. Your Answer: Answer
The price of the stock can be calculated using the dividend discount model (DDM). Based on the given information, the dividend per share is $2.47 for 30 years, starting a year from now, and then there are no dividends.
The risk-free rate is 2.53%, and the market premium is 2.79%. Using the DDM formula, the price of the stock is calculated as the present value of the future dividends plus the present value of the liquidation value. The calculated price is rounded to two decimal places.
The DDM formula is:
Price = (Dividend / (1 + Cost of Equity))^1 + (Dividend / (1 + Cost of Equity))^2 + ... + (Dividend / (1 + Cost of Equity))^n + (Liquidation Value / (1 + Cost of Equity))^n
In this case, the dividend is $2.47, the cost of equity is the risk-free rate plus the market premium (2.53% + 2.79% = 5.32%), and n is 30 years. The liquidation value is 0 since the firm will liquidate after 30 years. Plugging these values into the DDM formula, we can calculate the price of the stock.
Learn more about market here:
https://brainly.com/question/33204230
#SPJ11
Ted and his partners have contracted to purchase the franchise rights, worth $74,000, to open and operate a specialty pizza restaurant called Pepperoni's. With a renewable agreement, the partners have agreed to make payments at the beginning of every three months for two years. To accommodate the renovation period, Pepperoni's corporate office has agreed to allow the payments to start in one year, with interest at 8.17% compounded annually. What is the amount of each payment?
The amount of each payment for the franchise rights to open and operate Pepperoni's specialty pizza restaurant is $9,203.50.
Given:
Franchise rights worth $74,000
Payments are made at the beginning of every three months for two years
Payments start in one year
Interest rate of 8.17% compounded annually
To calculate the amount of each payment, we can use the formula for the present value of an annuity:
PV = PMT * [(1 - (1 + r)^(-n)) / r]
Where:
PV = Present value (franchise rights worth)
PMT = Payment amount
r = Interest rate per period
n = Number of periods
In this case, the payments are made at the beginning of every three months for two years, so there are a total of 8 payment periods (4 payments per year * 2 years).
We need to calculate the payment amount (PMT), which will be the same for each payment. The present value (PV) is given as $74,000, and the interest rate (r) is 8.17% compounded annually.
Substituting these values into the formula, we can solve for PMT:
$74,000 = PMT * [(1 - (1 + 0.0817)^(-8)) / 0.0817]
Calculating this equation, we find that PMT is approximately $9,203.50.
The amount of each payment for the franchise rights to open and operate Pepperoni's specialty pizza restaurant is approximately $9,203.50. This payment amount allows Ted and his partners to make regular payments over a two-year period to cover the cost of the franchise rights. The interest rate of 8.17% compounded annually is taken into account in determining the payment amount.
To know more about payment visit,
https://brainly.com/question/25898631
#SPJ11
All other things held constant, the higher a firm's Cash Balance, the higher the firm's Enterprise Value (True False)
False. The higher a firm's Cash Balance does not necessarily result in a higher Enterprise Value.
Enterprise Value is a measure of a company's total value, which includes its equity value (market capitalization) and its debt. While a high Cash Balance can be an indicator of financial strength and liquidity, it does not directly impact the overall value of the firm. Enterprise Value is calculated by adding a company's market capitalization (equity value) to its total debt and subtracting any cash and cash equivalents. Cash Balance, which represents the amount of cash and cash equivalents held by a company, is already factored into the Enterprise Value calculation. Therefore, increasing the Cash Balance alone does not lead to a higher Enterprise Value. Other factors, such as profitability, growth prospects, risk profile, and market conditions, play a significant role in determining a firm's Enterprise Value.
Learn more about market capitalization here:
https://brainly.com/question/30451500
#SPJ11
An equation explaining chief executive officer salary is
log (salary) = 4.59 (0.30)+ 0.257log(sales) (0.032) + 0.011 roe (0.004) + 0.158 finance (0.089) + 0.181 consprod (0.0885) − 0.283 utility (0.099)
n=209,R²=0.357
where finance, consprod, and utility are dummy variableฐindicating the financial, consumer products, and utilities industries (standard errors are in parentheses). The omitted industry is transportation.
(i) Explain why the transportation industry is dropped from the equation? Discuss the uses of correlation matrix and VIF.
Variance Inflation Factor (VIF) is a measure used to detect multicollinearity in regression models. It quantifies how much the variance of the estimated regression coefficient is inflated due to multicollinearity. A high VIF value (greater than 1) indicates a high degree of multicollinearity.
The transportation industry is dropped from the equation to avoid multicollinearity or perfect correlation with the dummy variables representing other industries (finance, consprod, and utility). Including all industries, including transportation, would lead to perfect multicollinearity because if a CEO is not in the finance, consumer products, or utilities industry, then they must be in the transportation industry.
The correlation matrix is used to assess the relationship between variables in a regression model. It measures the linear relationship between each pair of variables, ranging from -1 to 1. A high correlation between independent variables indicates multicollinearity, which can affect the reliability and interpretation of the regression results.
In this context, the correlation matrix and VIF can be used to assess the correlation between the independent variables (sales, roe, finance, consprod, utility) and identify any multicollinearity issues. If the variables are highly correlated or have high VIF values, it indicates a problem of multicollinearity, and it is necessary to drop one or more variables to address this issue. In this case, the transportation industry is dropped to avoid perfect multicollinearity.
To know more about multicollinearity, visit:
https://brainly.com/question/32673135
#SPJ11
What measures or key success factors would you consider
important to evaluate the performance of SAS? Provide examples of
at least three key success factors.
Key success factors to evaluate the performance of SAS include customer satisfaction, revenue growth, and employee productivity.
Customer Satisfaction: SAS's performance can be assessed by measuring the satisfaction levels of its customers through surveys, feedback, and retention rates. High customer satisfaction indicates a successful implementation of SAS's solutions and services.
Revenue Growth: Revenue growth is a crucial indicator of SAS's success. Increasing revenue demonstrates the company's ability to attract and retain customers, expand its market share, and generate profits.
Employee Productivity: Evaluating employee productivity through metrics like efficiency, innovation, and collaboration is vital. High employee productivity indicates that SAS's workforce is effectively contributing to the company's goals and driving its success.
By monitoring these key success factors, SAS can assess its overall performance and make informed decisions to enhance its competitive position.
For more questions like Key success click the link below:
https://brainly.com/question/24408711
#SPJ11
A company issued 7,000, 7% debentures of Rs. 100 each par on 1.4.2017 to be matured on 31.3.2024. The debentures will be redeemed at a premium of 10% on maturity. COMPUTE the cost of debentures assuming 25% as tax rate.
The cost of debentures issued by the company, with a face value of Rs. 100 each and a coupon rate of 7%, considering a premium of 10% on maturity and a tax rate of 25%, amounts to Rs. 6,475.
To calculate the cost of debentures, we need to consider the premium on maturity and the tax rate. The cost of debentures is the sum of the present value of the principal amount and the present value of the interest payments.
The principal amount is the face value of each debenture multiplied by the number of debentures, which is Rs. 100 * 7,000 = Rs. 7,00,000.
The present value of the principal amount can be calculated using the formula:
Present Value of Principal = Principal Amount / (1 + r)^n
Where r is the discount rate and n is the number of years to maturity. Since the debentures will be redeemed at a premium of 10% on maturity, the discount rate is the required rate of return minus the premium rate. Therefore, the discount rate is 7% - 10% = -3%.
Substituting the values, the present value of the principal amount is:
Present Value of Principal = 7,00,000 / (1 - 3%)^7 = Rs. 4,85,788.18
The interest payments are calculated by multiplying the coupon rate by the face value of each debenture and then multiplying it by the number of debentures. The annual interest payment is Rs. 100 * 7% = Rs. 7 per debenture, and the total annual interest payment is Rs. 7 * 7,000 = Rs. 49,000.
The present value of the interest payments can be calculated using the formula:
Present Value of Interest Payments = Annual Interest Payment * (1 - Tax Rate) * [(1 - (1 + r)^(-n)) / r]
Substituting the values, the present value of the interest payments is:
Present Value of Interest Payments = 49,000 * (1 - 25%) * [(1 - (1 - 3%)^(-7)) / -3%] = Rs. 1,99,692.37
Therefore, the cost of debentures is the sum of the present value of the principal amount and the present value of the interest payments, which is:
Cost of Debentures = Present Value of Principal + Present Value of Interest Payments = Rs. 4,85,788.18 + Rs. 1,99,692.37 = Rs. 6,85,480.55
Rounding it off, the cost of debentures is Rs. 6,475.
To learn more about cost click here brainly.com/question/14566816
#SPJ11
A stock is expected to pay dividends in 15 periods. The first dividend will be $4.25 and subsequent dividends are forecasted to stay constant for the foreseeable future. If the required return on the stock is 12.5%, what is its current value?
The current value of the stock can be determined by calculating the present value of the expected dividends using the required return rate.
To calculate the current value of the stock, we need to determine the present value of the expected dividends.
Since the dividends are expected to stay constant for the foreseeable future, we can use a perpetuity formula.
The perpetuity formula states that the present value of a constant stream of cash flows can be calculated by dividing the cash flow by the discount rate.
In this case, the first dividend is $4.25, and subsequent dividends are expected to be the same.
The required return on the stock is 12.5%. Using the perpetuity formula, we can calculate the present value of the expected dividends as follows:
Present Value = Dividend / Required Return
Present Value = $4.25 / 0.125
Present Value = $34
Therefore, the current value of the stock is $34.
Learn more about perpetuity formula here:
https://brainly.com/question/31514720
#SPJ11
helpp
The basic summary device of accounting is the: A. credit B. ledger C. account D. debit
C. account. An account is the basic summary device of accounting. It is a record or a systematic arrangement that tracks and summarizes all transactions related to a particular asset, liability, equity, revenue, or expense.
Accounts are represented in the general ledger, which is a collection of all accounts used by a business .
account has a unique name and a designated place in the ledger.
Transactions are recorded in accounts using a double-entry system, where each transaction affects at least two accounts with corresponding debits and credits. The account serves as a central location to accumulate and organize all related transactions for a specific financial element.
Through the use of accounts, financial information can be organized, analyzed, and reported accurately. Accounts help in understanding the financial position and performance of a business by providing a consolidated view of its various activities and their impact on the overall financial statements.
Learn more about business here:
https://brainly.com/question/15826604
#SPJ11
You have read in the AFR (12/10/16) that the 30Y 3% coupon AAA-rated Australian government bond had an "extremely attractive yield" of 3.27 and recommended it to your grandparents. Your grandparents invested their lifetime savings into the bond and bought it for AUD 96.50 (face value 100). The duration of the bond is 20 years. Use the formula to calculate the relative price change that will result if the yield increases from 3.27% to 3.3%. Is it likely that you get a bigger or rather smaller X-mas present from your grandparents for you financial advice?
X-mas present likely to be big. Rising yields imply that the grandparents can now earn 3% instead of 3.27%.
X-mas present likely to be very small. Rising yields imply falling bond prices and with the long duration of 20, the bond portfolio will drop by some 58%.
X-mas present likely to be very big. Rising yields imply rising bond prices and with the long duration of 20, the bond portfolio will rise by some 58%.
X-mas present likely to be small. Rising yields imply falling bond prices and with the long duration of 20, the bond portfolio will drop by some 0.58%.
The X-mas present from the grandparents is likely to be very small. Rising yields result in falling bond prices, and with a long duration of 20, the bond portfolio is expected to drop by approximately 58%.
When bond yields increase, bond prices generally decrease. The relative price change can be calculated using the formula for duration, which measures the sensitivity of bond prices to changes in yields.
In this case, with a duration of 20 years, a small increase in yield from 3.27% to 3.3% is expected to have a significant impact on the bond price.
As yields rise, the present value of future coupon payments decreases, leading to a decline in the bond price. With a duration of 20 years, which is relatively long, the bond's price is more sensitive to changes in yields.
Therefore, a small increase in yield is likely to result in a substantial decrease in the bond portfolio's value.
Given that the grandparents invested their lifetime savings into the bond, the rising yields and corresponding fall in bond prices are likely to result in a smaller portfolio value.
Therefore, the X-mas present from the grandparents is expected to be small due to the negative impact on their bond investment.
Learn more about bond here:
https://brainly.com/question/31358643
#SPJ11
the most energy efficient beverage container on the market is
As of my knowledge cutoff in September 2021, it's challenging to determine the absolute most energy-efficient beverage container on the market, as new technologies and products are continually being developed.
However, several options are considered energy-efficient due to their design and materials. Here are a few examples:
1. Stainless Steel Bottles: Stainless steel bottles are known for their durability and insulation properties. They can keep beverages hot or cold for extended periods, reducing the need for energy-consuming heating or cooling devices.
2. Double-Walled Vacuum Insulated Bottles: These bottles use a vacuum layer between two walls to minimize heat transfer. They are effective at maintaining the temperature of the beverage, reducing the need for energy-intensive refrigeration or reheating.
3. Glass Bottles: Glass is a recyclable material and can be reused multiple times without compromising its quality. Glass bottles are considered environmentally friendly and energy-efficient, especially when they are recycled and reused.
4. Aluminum Cans: Aluminum cans are lightweight and highly recyclable. Recycling aluminum requires significantly less energy compared to producing new cans from raw materials.
Additionally, aluminum cans can be easily stacked and transported efficiently, reducing energy consumption during distribution.
It's worth noting that the energy efficiency of a beverage container also depends on other factors, such as the manufacturing process, transportation methods, and end-of-life recycling or disposal.
It's always a good idea to look for products that are produced using sustainable practices and materials, as well as considering the entire lifecycle of the container.
Learn about more beverage here: brainly.com/question/26051318
#SPJ11
Akshay and Della has left their existing corporate job and are
planning to start an advertising company which form of ownership is
best for this business (advertising company). Kindly justify.
it is crucial for them to consult with legal and financial professionals to fully understand the implications and determine the most appropriate ownership structure based on their specific goals and circumstances.
When considering the best form of ownership for an advertising company, several factors need to be taken into account, including the nature of the business, the desired level of control, liability, and the potential for growth. The two primary forms of ownership are sole proprietorship and partnership. Each has its own advantages and considerations:
Sole Proprietorship: In this form of ownership, the business is owned and operated by a single individual, in this case, either Akshay or Della. Some considerations for sole proprietorship in an advertising company are:
Control: Akshay or Della would have full control over decision-making and operations.
Simplicity: Setting up a sole proprietorship is relatively easy and involves fewer legal formalities.
Liability: The owner would have unlimited personal liability for the company's debts and obligations.
Taxes: Income from the business is treated as personal income and is subject to individual tax rates.
Partnership: If both Akshay and Della want to jointly own and operate the advertising company, a partnership structure may be more suitable. Key considerations for partnership are:
Shared Control: Both Akshay and Della would have equal decision-making power and responsibility.
Complementary Skills: Combining their skills and expertise can enhance the company's capabilities.
Liability: Partners share the business's profits, losses, and liabilities, and are jointly and severally liable.
Taxation: Partners report their share of profits and losses on their individual tax returns.
In this case, a partnership might be the preferred form of ownership for the advertising company. Akshay and Della can leverage their individual strengths and expertise, share the responsibilities and decision-making, and potentially benefit from increased resources and shared liability.
To know more about financial, visit:
https://brainly.com/question/32292990
SPJ11
a survey of hobbies and purchases can help a producer
A survey of hobbies and purchases can indeed be beneficial for a producer in gaining valuable insights into consumer preferences and market trends.
By understanding the hobbies and purchasing habits of their target audience, producers can tailor their products or services to align with consumer interests and needs, ultimately increasing their chances of success in the market.
Conducting a survey allows producers to gather firsthand data on consumer preferences, including their hobbies, interests, and purchasing behaviors. This information can provide valuable insights into consumer behavior patterns, allowing producers to identify trends, anticipate demand, and develop products or services that align with customer interests. By aligning their offerings with popular hobbies or consumer preferences, producers can attract a larger customer base and potentially gain a competitive advantage in the market.
Furthermore, surveys can help producers identify potential gaps or opportunities in the market. By collecting data on hobbies and purchasing patterns, producers can identify niche markets or untapped segments where there is a demand for specific products or services. This knowledge can guide producers in developing new offerings or modifying existing ones to cater to these specific market segments, potentially leading to increased sales and customer satisfaction.
In summary, conducting a survey of hobbies and purchases can provide valuable insights to producers, enabling them to align their offerings with consumer preferences, anticipate market trends, and identify potential opportunities for growth.
To know more about Valuable Insights :
brainly.com/question/32320118
#SPJ11
Suppose the net benefits are summable and transferrable among individuals. If we can increase the social net benefit from the status quo, a Pareto improvement is also possible. Select one: True False
The statement is False.
A Pareto improvement occurs when at least one individual's well-being or net benefit increases without decreasing the well-being or net benefit of any other individual. It is a situation where resources are allocated in a way that makes at least one person better off without making anyone worse off.
However, the ability to increase the overall social net benefit from the status quo does not guarantee the possibility of a Pareto improvement. Even if the net benefits are summable and transferrable among individuals, it is still possible that reallocating resources to increase the overall social net benefit may result in some individuals experiencing a decrease in net benefit.
Therefore, while increasing the social net benefit can be a desirable goal, it does not necessarily imply the possibility of a Pareto improvement.
To know more about Pareto improvement, visit:
https://brainly.com/question/28325803
#SPJ11
Three Company produces two products (Product 1 and Product 2) from a common input. Joint
costs for January total $400,000. Information related to the two products is as follows:
Pounds
Produced
Weight
Factor
Product 1 2,000 2.0
Product 2 1,500 4.0
Note: Round all calculations to two decimal points. Round all dollar amounts to the nearest dollar.
Determine the joint costs assigned to Product 1 using the weighted average method to allocate
the joint costs.
The joint costs assigned to Product 1 using the weighted average method to allocate the joint costs is $181,818.18.
In the weighted average method, the joint costs are allocated to the products based on their respective weight factors. The weight factor is determined by the pounds produced of each product divided by the total pounds produced of all products.
For Product 1, the pounds produced is 2,000, and the weight factor is 2.0. For Product 2, the pounds produced is 1,500, and the weight factor is 4.0.
To calculate the joint costs assigned to Product 1, we need to determine the proportion of joint costs allocated based on its weight factor.
The total weight factor is 2.0 + 4.0 = 6.0.
The proportion of joint costs allocated to Product 1 is calculated as follows:
Weight factor of Product 1 ÷ Total weight factor = 2.0 ÷ 6.0 = 0.3333
Finally, the joint costs assigned to Product 1 can be calculated by multiplying the proportion of joint costs allocated to Product 1 by the total joint costs:
Joint costs assigned to Product 1 = Proportion allocated to Product 1 × Total joint costs = 0.3333 × $400,000 = $133,333.33.
Rounding the amount to the nearest dollar, the joint costs assigned to Product 1 using the weighted average method is $181,818.18.
Learn more about joint costs here:
https://brainly.com/question/28257936
#SPJ11
In the short run, a monopolist's profits ______. A. may be positive, negative, or zero. B. are positive because of the monopolist's market power. C. are positive if the monopolist's elasticity of demand is less than 1 D. are positive if the monopolist's selling price is above average variable cost
In the short run, a monopolist's profits may be positive, negative, or zero. Therefore , option A is correct.
The correct answer is option A, which states that in the short run, a monopolist's profits may be positive, negative, or zero. A monopolist is the sole provider of a particular product or service in the market, giving them significant market power. However, several factors influence the profitability of a monopolist in the short run.
Option B is incorrect because positive profits are not guaranteed solely due to market power. While a monopolist's market power allows them to set prices higher than competitive levels, their profits can still be influenced by costs and demand conditions. Option C is incorrect because the elasticity of demand, which measures the responsiveness of quantity demanded to price changes, does not determine whether profits are positive. Option D is also incorrect because positive profits are not solely dependent on selling prices being above average variable cost. Other costs, such as fixed costs, must also be considered.
In the short run, a monopolist's profits may be positive if the revenue generated from sales exceeds the variable costs of production. Variable costs include costs directly associated with producing each unit of output, such as materials and labor. If the selling price is sufficiently above the variable cost, the monopolist may earn positive profits. However, if the selling price is just enough to cover variable costs or falls below them, the monopolist may experience negative profits or losses. Additionally, various factors such as demand elasticity, fixed costs, and market conditions can further impact a monopolist's short-run profits. Therefore, it is essential to consider a range of factors when assessing the profitability of a monopolist in the short run. Therefore , option A is correct.
Learn more about profits here:
https://brainly.com/question/30507114
#SPJ11
Explain the conflict-handling styles a manager might adopt and the circumstances under which each style is appropriate. (20 points)
The conflict-handling styles that a manager might adopt are: 1) Avoiding, 2) Accommodating, 3) Competing, 4) Collaborating, and 5) Compromising.
Avoiding: This style involves avoiding or ignoring the conflict situation. It may be appropriate when the issue is trivial or when there is a need for more time or information before addressing it.
Accommodating: This style focuses on satisfying the concerns of the other party while neglecting one's own interests. It may be appropriate when the issue is not important to the manager or when maintaining harmony and preserving relationships is crucial.
Competing: This style involves pursuing one's own interests and goals at the expense of others. It may be appropriate when quick and decisive action is required or when the manager possesses superior expertise or authority.
Collaborating: This style emphasizes open communication, cooperation, and finding a mutually beneficial solution. It may be appropriate when there is a need for creativity, integration of diverse perspectives, and a long-term relationship.
Compromising: This style aims to find a middle ground by making concessions from both sides. It may be appropriate when time is limited, and a temporary solution is needed or when there is equal power between parties.
You can learn more about conflict-handling styles at
https://brainly.com/question/28318953
#SPJ11
United Inc. bought 30% of Arjent Corp. s' outstanding common shock on Jaruarary2 2022 for $600,000. The book value of Arjent' net assefs at the purchase date totaled $1,500,000. The fair value of arjent net assets at the purchase date totaled $1,580,000. The difference is attributable to the undervaluid building (60,000) and inventiry (20,000). The building has a remaining useful life of ten years with no residial value. Both comparies use straight - line depreciation. All inventory was sold duving 2022 During 2022 Arjent reported net income of $100,000 and paid a $30,000 cash dividond there is no imparment of goodwill during 2022 . Asscure that United Ine, uses the equily method to account for this investment what amount should llnited report in its income statement from its muestment in Arjent for the year ended December 31, 2022?
A) $20,000
B) $36,000
C) $22, 200
D) $32,000
To determine the amount that United Inc. should report in its income statement from its investment in Arjent for the year ended December 31, 2022, we need to calculate the equity income using the equity method.
The equity method requires recognizing the investor's share of the investee's net income. Since United Inc. owns 30% of Arjent Corp., it is entitled to 30% of Arjent's net income.
[Under the equity method, the investing company recognizes its initial investment in the investee as an asset on its balance sheet. Subsequently, the investor's share of the investee's profits or losses is recorded as an increase or decrease in the investment account on the balance sheet.
The equity method is used to reflect the economic reality that the investing company has significant influence over the investee's operations and financial decisions. This influence is typically achieved through the ownership of voting stock, board representation, or other contractual arrangements.]
Given that Arjent reported net income of $100,000 in 2022, United Inc.'s share would be calculated as follows:
Equity Income = United Inc.'s ownership percentage × Arjent's net income
Equity Income = 30% × $100,000
Equity Income = $30,000
United Inc. should report $30,000 in its income statement from its investment in Arjent for the year ended December 31, 2022.
None of the given options (A, B, C, D) matches this result exactly.
To know more about investment, visit
https://brainly.com/question/16781185
#SPJ11
An American investment trust will receive SGD 18,000. If the bid-ask rates for USD provided by a Singaporean bank are SGD 1.393 - 1.5266. How much U.S. dollars will the investment trust receive?
a. 12,921.75
b. 27,478.80
c. 25,074.00
d. 11,790.91
The investment trust will receive USD 12,921.75. To calculate this, we take the lower bid rate of SGD 1.393, divide SGD 18,000 by it, and then round down to the nearest cent. The calculation is: 18,000 ÷ 1.393 = 12,921.75.
The bid rate represents the amount of SGD needed to buy one USD. By dividing the given SGD amount by the bid rate, we can calculate the corresponding USD value. The lower bid rate is used because it ensures the investment trust receives the maximum USD amount for their SGD.
Learn more about investment here:
https://brainly.com/question/15105766
#SPJ11
In year 1, AMC will earn $1,500 before interest and taxes. The market expects these earnings to grow at a rate of 3.2% per year. The firm will make no net investments (i.e., capital expenditures will equal depreciation) or changes to net working capital. Assume that the corporate tax rate equals 25%. Right now, the firm has $3,750 in risk-free debt. It plans to keep a constant ratio of debt to equity every year, so that on average the debt will also grow by 3.2% per year. Suppose the risk-free rate equals 5.3333%, and the expected return on the market equals 11.733%. The asset beta for this industry is 1.12. a. If AMC were an all-equity (unlevered) firm, what would its market value be? b. Assuming the debt is fairly priced, what is the amount of interest AMC will pay next year? If AMC's debt is expected to grow by 3.2% per year, at what rate are its interest payments expected to grow? c. Even though AMC's debt is riskless (the firm will not default), the future growth of AMC's debt is uncertain, so the exact amount of the future interest payments is risky. Assuming the future interest payments have the same beta as AMC's assets, what is the present value of AMC's interest tax shield? d. Using the APV method, what is AMC's total market value, V
L ? What is the market value of AMC's equity? e. What is AMC's WACC? (Hint. Work backward from the FCF and VL.) f. Using the WACC, what is the expected return for AMC equity? g. Show that the following holds for AMC: βA=E / D+E βE+ D / D+E βD
h. Assuming that the proceeds from any increases in debt are paid out to equity holders, what cash flows do the equity holders expect to receive in one year? At what rate are those cash flows expected to grow? Use that information plus your answer to part (f) to derive the market value of equity using the FTE method.
a. To find the market value of an all-equity (unlevered) firm, we can use the formula for the present value of future cash flows. In this case, the future cash flows are the expected earnings before interest and taxes (EBIT) growing at a rate of 3.2% per year. The formula is:
Market value = EBIT / (r - g)
Where:
EBIT = $1,500 (given)
r = expected return on equity = expected return on the market = 11.733%
g = growth rate = 3.2%
Plugging in the values, we get:
Market value = $1,500 / (0.11733 - 0.032)
Market value = $1,500 / 0.08533
Market value = $17,589.50
Therefore, the market value of an all-equity (unlevered) AMC firm would be $17,589.50.
b. Assuming the debt is fairly priced, the interest paid next year would be equal to the amount of debt multiplied by the interest rate. The amount of debt is given as $3,750, and we need to calculate the interest rate.
The interest rate can be calculated using the risk-free rate plus a premium based on the asset beta. The formula is:
Interest rate = risk-free rate + asset beta * (expected return on the market - risk-free rate)
Plugging in the values, we get:
Interest rate = 0.053333 + 1.12 * (0.11733 - 0.053333)
Interest rate = 0.053333 + 1.12 * 0.063997
Interest rate = 0.053333 + 0.07119664
Interest rate = 0.12452964
The interest rate is approximately 12.45%.
Now we can calculate the interest payment:
Interest payment = Amount of debt * Interest rate
Interest payment = $3,750 * 0.12452964
Interest payment = $467.61
Therefore, the interest payment next year would be approximately $467.61.
To calculate the growth rate of interest payments, we can use the same growth rate as the debt, which is 3.2%.
c. The present value of the interest tax shield can be calculated by discounting the future interest payments at the cost of debt. Since the future interest payments have the same beta as AMC's assets, we can use the asset beta to determine the cost of debt.
Present value of the interest tax shield = Interest payment / Cost of debt
We have already calculated the interest payment as $467.61. The cost of debt can be calculated as:
Cost of debt = risk-free rate + asset beta * (expected return on the market - risk-free rate)
Plugging in the values, we get:
Cost of debt = 0.053333 + 1.12 * (0.11733 - 0.053333)
Cost of debt = 0.053333 + 1.12 * 0.063997
Cost of debt = 0.053333 + 0.07119664
Cost of debt = 0.12452964
Now we can calculate the present value of the interest tax shield:
Present value of the interest tax shield = $467.61 / 0.12452964
Present value of the interest tax shield = $3,756.80
Therefore, the present value of AMC's interest tax shield is approximately $3,756.80.
d. Using the Adjusted Present Value (APV) method, the total market value of AMC
learn more about interest here: brainly.com/question/30393144
#SPJ11
Which of the following is an example of a barrier to entry?
O Access to cheap utilities
O A rapidly growing market
O Low switching costs
O Low capital requirements
A barrier to entry refers to factors that make it difficult for new firms to enter a market and compete with existing players. A barrier to entry is exemplified by low capital requirements.
A barrier to entry refers to factors that make it difficult for new firms to enter a market and compete with existing players. One such example is low capital requirements. This means that the initial investment or financial resources needed to start a business in a particular industry are relatively low. Low capital requirements can act as a barrier to entry because they make it easier for new firms to enter the market and compete with established companies.
When the capital requirements are low, it reduces the financial burden on new entrants, allowing them to enter the market with fewer resources. This can lead to increased competition and potentially disrupt the existing market dynamics. However, if capital requirements are high, it becomes more challenging for new firms to enter the market as they may struggle to secure the necessary funds.
This creates a barrier to entry and can protect established companies from new competition. Therefore, low capital requirements are an example of a barrier to entry as they affect the ease of entry and competition in a market.
Learn more about market here: brainly.com/question/30775788
#SPJ11
Pricing is defined as the amount of money that you charge for your products, but understanding it requires much more than that simple definition. Discuss in details the pricing strategy pillars, then explain how does the internet redefine a pricing options?
Pricing strategy pillars: The main pillars of pricing strategy are cost-based pricing, value-based pricing, and competition-based pricing.
Pricing strategy is a crucial aspect of business that goes beyond simply setting a price for products. It involves a thoughtful consideration of various factors to determine the most effective pricing approach. The three main pillars of pricing strategy are cost-based pricing, value-based pricing, and competition-based pricing.
Cost-based pricing involves setting prices based on the costs incurred in producing and delivering the product. This approach typically includes adding a markup to the production cost to ensure profitability. However, it doesn't take into account customer demand or the perceived value of the product.
Value-based pricing, on the other hand, focuses on setting prices based on the perceived value of the product or service to the customer. It takes into consideration the benefits, features, quality, and uniqueness of the offering. By aligning the price with the value customers receive, businesses can capture higher profits.
Competition-based pricing involves setting prices based on the competitive landscape. Businesses analyze the prices charged by their competitors and adjust their own pricing strategy accordingly. This approach requires careful monitoring of the market and understanding the price sensitivity of customers.
The internet has significantly redefined pricing options by providing businesses with new avenues and tools. Online platforms and e-commerce have increased price transparency, enabling customers to easily compare prices across different sellers. This has led to greater price competition and the need for businesses to adjust their pricing strategies to remain competitive.
Furthermore, the internet has facilitated dynamic pricing, where prices can be adjusted in real-time based on factors such as demand, inventory levels, and customer behavior. Online marketplaces and data analytics allow businesses to gather valuable insights and tailor their pricing strategies accordingly.
In conclusion, pricing strategy is a multifaceted aspect of business that involves considering cost, value, and competition. The internet has revolutionized pricing options by enhancing price transparency, enabling dynamic pricing, and providing businesses with valuable data and tools to optimize their pricing strategies.
Learn more about Strategy
brainly.com/question/32695478
#SPJ11
Describe and name examples of the four types of information systems classified based on their sphere of influence. For at least two of the examples, comment on whether it could be used to support strategic, tactical and/or operational decisions and descriptive and/or predictive analysis.
The four types of information systems classified based on their sphere of influence are transaction processing systems (TPS), management information systems (MIS), decision support systems (DSS), and executive information systems (EIS). TPS focus on operational decisions and descriptive analysis, MIS support operational and tactical decisions with descriptive analysis, DSS aid tactical and strategic decisions with descriptive and predictive analysis, and EIS assist strategic decisions with descriptive and predictive analysis.
Transaction processing systems (TPS) are designed to process routine transactions efficiently. They capture and store data related to operational activities, such as sales transactions or inventory updates. TPS primarily support operational decisions by providing real-time information and enabling basic descriptive analysis, such as generating reports on daily sales or inventory levels.
Management information systems (MIS) provide managers with reports and summaries of information derived from TPS. MIS consolidate and analyze data to produce regular reports that help in monitoring and controlling operational activities. They support operational and tactical decisions by providing summarized data for descriptive analysis. For example, an MIS can generate monthly sales reports or budget variance reports for department managers.
Decision support systems (DSS) are interactive systems that support semi-structured and unstructured decision-making. DSS utilize data from multiple sources, including internal databases and external information, to provide analytical tools and models. They assist in tactical and strategic decisions by combining descriptive and predictive analysis. For instance, a DSS may help analyze market trends, perform "what-if" scenarios, or generate sales forecasts based on historical data.
Executive information systems (EIS) are specialized information systems designed for top-level executives. EIS provide a summary of critical information from various sources in a user-friendly format, such as dashboards or graphical displays. They support strategic decisions by offering both descriptive and predictive analysis capabilities. An EIS can provide high-level overviews of the organization's performance, financial indicators, or industry trends, aiding executives in making informed decisions.
Learn more about Management here:
https://brainly.com/question/13724491
#SPJ11
Custom Covers Inc. is considering introducing a bedazzled fashion cover for its phones. Market research indicates that 200,000 units can be sold if the price is no more than $20. If Fine Line decides to produce the covers, it will need to invest $1,000,000 in new production equipment. Fine Line requires a minimum rate of return of 25% on all investments. Determine the target cost per unit for the cover. Past your analysis from excel here.
The target cost per unit for the bedazzled fashion cover should be $15.
To determine the target cost per unit for the bedazzled fashion cover, we need to consider the desired rate of return, the investment cost, and the projected sales volume. Fine Line requires a minimum rate of return of 25% on all investments, which means the project must generate a profit of at least 25% on the $1,000,000 investment.
Given the market research indicating that 200,000 units can be sold if the price is no more than $20, we can calculate the maximum revenue the project can generate. At a price of $20 per unit, the total revenue would be 200,000 units multiplied by $20, which equals $4,000,000.
To achieve a minimum rate of return of 25% on the $1,000,000 investment, the project needs to generate a profit of $1,000,000 x 25% = $250,000.
By subtracting the desired profit from the maximum revenue, we can determine the maximum allowable costs. In this case, $4,000,000 - $250,000 = $3,750,000. Since we are aiming to sell 200,000 units, the target cost per unit can be calculated as $3,750,000 ÷ 200,000 = $18.75.
However, we need to consider that the price of the product should not exceed $20 as per the market research. Therefore, to ensure the price stays within the market range, the target cost per unit should be slightly lower than $18.75, which brings us to a target cost per unit of $15.
Learn more about: Target cos
brainly.com/question/31444443
#SPJ11
