Suppose that a European call option to buy a share for $110 costs $6 and is held until maturity. Under what circumstances will the buyer of the option make a profit?
A. If the stock price at maturity is greater than $110
B. If the stock price at maturity is less than $110
C. If the stock price at maturity is greater than $116
D. If the stock price at maturity is greater than $104

Answers

Answer 1

The buyer makes a profit if the stock price at maturity exceeds the total cost of exercising the option. The correct answer is:

C. If the stock price at maturity is greater than $116.

The buyer of the European call option will make a profit if the stock price at maturity exceeds the breakeven price. The breakeven price is the sum of the strike price and the premium paid for the option. In this case, the strike price is $110 and the premium paid is $6. Therefore, the breakeven price is $116.

If the stock price at maturity is greater than $116, the buyer of the option will make a profit. This is because they can exercise the option to buy the share at $110 and then sell it in the market at the higher market price, earning a profit.

Hence, the correct answer is C. If the stock price at maturity is greater than $116.

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Related Questions

What was the impact of the Bolshevik Revolution on peace that followed the Great War in relations to the Fourteen Points?

Answers

The Bolshevik Revolution had a significant impact on the peace that followed the Great War in relation to the Fourteen Points. It challenged the principles of self-determination and national sovereignty, leading to a shift in the post-war landscape.

The Bolshevik Revolution, which took place in Russia in 1917, had a profound effect on the peace process following the Great War, particularly in relation to the Fourteen Points proposed by U.S. President Woodrow Wilson. The Fourteen Points aimed to establish a just and lasting peace by promoting principles such as self-determination, open diplomacy, and the establishment of a League of Nations.

However, the Bolshevik Revolution presented a challenge to these ideals. The revolutionaries, led by Vladimir Lenin, sought to spread their socialist ideology and overthrow the capitalist order not only in Russia but also across Europe. This revolutionary fervor threatened the stability of the post-war settlement and posed a significant obstacle to the implementation of the Fourteen Points.

The Bolsheviks' withdrawal from World War I and their subsequent signing of the Treaty of Brest-Litovsk with Germany in 1918 had far-reaching consequences. This separate peace agreement effectively removed Russia from the war and allowed Germany to concentrate its forces on the Western Front. It weakened the Allies' position and provided Germany with significant territorial gains, contradicting the principles of self-determination put forth in the Fourteen Points.

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write Notice Writing, you are required to prepare a notice for the day of the event to inform all guests of the location of the venue for the dinner.

You are the Marketing Manager for Banquet and Events at the Hilton Hotel, South Beach Road, Singapore. Miss Eva, the Human Resource Manager of Aventis Pte. Ltd. has contacted you and confirmed that they would like to hold their company annual dinner at your hotel. She has provided you with the following event details
Event details:
Date: Friday, 25th November 2022
Time: 6:30 p.m. – 11:00 p.m.
Number of guests: 100 (10 guests per table)
Theme: Retro Dinner Party
Floral Arrangement: Geraniums and Orchids for each table and the entrance archway Venue: The Tree18, Sky Gardens.

Answers

In this notice, the key event details such as the date, time, venue, theme, and floral arrangements are mentioned. The notice is written in a concise and informative manner, providing guests with all the necessary information for the event.

Hilton Hotel, South Beach Road, Singapore
Notice
Date: November 25, 2022

Dear Guests,

We are delighted to inform you that Aventis Pte. Ltd. will be hosting their annual dinner at our hotel. Please find the event details below:

Event Details:
Date: Friday, November 25, 2022
Time: 6:30 p.m. – 11:00 p.m.
Venue: The Tree18, Sky Gardens
Theme: Retro Dinner Party

We look forward to welcoming you to a nostalgic evening filled with good food, music, and company. Each table will be adorned with beautiful Geraniums and Orchids, creating a stunning ambiance. The entrance archway will also be decorated with these exquisite flowers.

Please ensure you arrive on time to enjoy the festivities. We are excited to be hosting this memorable event and hope you have a wonderful time.

Warm regards,
[Your Name]
Marketing Manager
Banquet and Events
Hilton Hotel, South Beach Road, Singapore


In this notice, the key event details such as the date, time, venue, theme, and floral arrangements are mentioned. The notice is written in a concise and informative manner, providing guests with all the necessary information for the event. The tone is friendly and inviting, encouraging guests to attend and enjoy the evening. The notice is signed off by the Marketing Manager of the Hilton Hotel.


Hilton Hotel, South Beach Road, Singapore
Notice
Date: November 25, 2022

Dear Guests,

We are delighted to inform you that Aventis Pte. Ltd. has chosen our hotel as the venue for their annual dinner. The event will be held on Friday, November 25, 2022, from 6:30 p.m. to 11:00 p.m. We would like to invite you to join us for this special occasion.

The venue for the dinner will be The Tree18, Sky Gardens. This beautiful location provides a stunning backdrop for the event. The theme for the evening is a Retro Dinner Party, taking you back in time to an era of classic elegance and charm.

To create a captivating atmosphere, each table will be adorned with Geraniums and Orchids. These exquisite floral arrangements will add a touch of sophistication to the evening. The entrance archway will also be decorated with these beautiful flowers, setting the tone for the event.

We are excited to be hosting this memorable evening and look forward to welcoming you to the Hilton Hotel. Please ensure you arrive on time to fully enjoy the festivities. We hope you have a wonderful time and create lasting memories with Aventis Pte. Ltd.

Warm regards,
[Your Name]
Marketing Manager
Banquet and Events
Hilton Hotel, South Beach Road, Singapore


In this notice, all the important event details are mentioned, including the date, time, venue, theme, and floral arrangements. The notice is written in a friendly and inviting tone, encouraging guests to attend the event. The venue and theme are described to give guests a clear idea of what to expect. The floral arrangements are highlighted to emphasize the elegant ambiance that will be created. The notice is signed off by the Marketing Manager of the Hilton Hotel, adding a personal touch and creating a sense of professionalism.

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ASSESMENT
Identify a business that you could start. What type of business would you propose? What business strategy would you follow? What staffing strategies would you use and why? Design your staffing strategy. Describe the strategic staffing components that should be taken into consideration. What would you recommend the business to do to maintain its competitive advantage?
Your business requires several job functions. Choose one job, design the staffing flowchart for this job taking into consideration also the job analysis and the job description and person specification.

Answers

Business proposal: A local restaurant can be a great business proposal. There are several reasons why a restaurant is a good choice for starting a business. Firstly, it's an essential service that people will need no matter what. Even in the current scenario of COVID-19, the food industry is thriving.

Therefore, it can be an excellent way to start a new venture. Business Strategy: The restaurant would provide a unique and modern experience, and it would try to accommodate as many as possible. The focus of the restaurant would be to serve delicious food and beverages. The target market would be people from all ages and income brackets.Staffing Strategy: The staffing strategy of a restaurant would involve a combination of permanent and temporary staff. The permanent staff would include experienced cooks, restaurant managers, and waitstaff. The temporary staff would consist of seasonal workers that could be hired when the restaurant gets busy, and there is an increase in customer volume. This can be beneficial in reducing costs during the off-season.Strategic Staffing Components: The strategic staffing components that would be taken into consideration include job analysis, recruitment, selection, and training. Job analysis helps in identifying the specific job requirements for the job. Recruitment is the process of attracting qualified candidates to the job opening. Selection is the process of choosing the best candidates for the job, and training helps in preparing the staff for the job.Maintaining Competitive Advantage: The business can maintain its competitive advantage by offering unique services and providing excellent customer service. They can provide promotions and discounts to customers to attract more business and build a loyal customer base.Staffing Flowchart: The staffing flowchart for the position of a restaurant manager can be as follows: Job Analysis: The job of the restaurant manager involves overseeing the daily operations of the restaurant. They are responsible for managing the kitchen staff, and waitstaff, and making sure that the food is prepared to perfection.Job Description: The job description includes the responsibilities, duties, and skills required for the job.Person Specification: The person specification includes the required qualifications, experience, and skills needed to perform the job.Recruitment: The recruitment process includes advertising the job opening, screening resumes, and interviewing candidates.Selection: The selection process includes selecting the best candidate for the job and conducting background checks.

Training: The training process includes providing the new hire with an orientation and training on the job.
In conclusion, starting a restaurant requires a lot of effort, but with the right business and staffing strategies, it can be a successful venture.

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A sting broker is employed to find a purchaser and produces a full cash offer that meets the seller's terms. The seller refuses to accept the offer because he doesn't like the buyer. Which condition exists? (4) The broker is entitled to compensation since he produced a buyer who met the seller's terms for the sale A (b) The broker is obligated to find another buyer that the seler kes in order to be compensated (c) The troker is not entiled to compensation unit the contract is signed by all parties. The broker is only wted to compensation when the contract is consummated on the day of closing

Answers

The correct answer is (c). The broker is not entitled to compensation until the contract is signed by all parties. The broker is only entitled to compensation when the contract is consummated on the day of closing.

In the case you described, the broker has produced a buyer who met the seller's terms for the sale. However, the seller has not yet accepted the offer. Therefore, the broker is not yet entitled to compensation.

The broker will only be entitled to compensation if the seller accepts the offer and the contract is consummated on the day of closing. If the seller does not accept the offer or if the contract is not consummated, the broker will not be entitled to compensation.

This is because the broker's contract with the seller is contingent on the seller accepting the offer and the contract being consummated. Until those events occur, the broker has not yet earned their commission.

This is a common practice in the real estate industry. It ensures that brokers are only compensated for their services when they have successfully completed the transaction.

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Consider the business partnership between the chip manufacturer AMD and the EV manufacturer Tesla. Suppose AMD sells chips exclusively to Tesla, and Tesla buys chips exclusively from AMD. Assume each Tesla EV is equipped with one AMD chip. AMD produces the chip at a constant marginal cost CA = 4 and sells it to Tesla at PA (the price per chip): AMD does not incur other costs. Tesla's EV production cost solely comes from the purchase cost of AMD chips. Tesla faces the following inverse demand for its EV: PT = 100-QT where PT is the price of Tesla EV and QT is the demand of Tesla EV.
(a) Suppose PA = 10: Determine Tesla's optimal pricing strategy and profit. Next consider the sequential-move game between AMD and Tesla. In stage one, AMD chooses its pricing strategy PA: In stage 2, after observing the price PA set by AMD, Tesla chooses its pricing strategy PT :
(b)Following the notion of SPNE, determine Tesla's optimal pricing strategy PT in the second stage for any given PA in the first stage.
(c) Following the notion of SPNE, determine AMD's optimal pricing strategy PA in the first stage.
(d) Based on your answers in (b) and (c), calculate each firm's profit at the SPNE of the game.
(e) Suppose Tesla is considering to acquire AMD to bring the chip production in house. Determine Tesla's optimal pricing strategy PT and profit if the acquisition is successful.
(f)Compare the combined profit of Tesla and AMD in (d) with Tesla's profit after acquisition in (e). How much is Tesla willing to pay to acquire AMD?

Answers

Assuming a chip price of PA = 10, Tesla's optimal pricing strategy and profit can be determined. If Tesla considers acquiring AMD, its optimal pricing strategy and profit will change.

(a) For PA = 10, Tesla's optimal pricing strategy is to set PT = 100 - QT. To maximize profit, Tesla should produce and sell the quantity of EVs where marginal cost equals marginal revenue. In this case, since the marginal cost per chip is 4, Tesla should set PT = 100 - QT = 100 - (CA/PA) = 100 - (4/10) = 99.6. Tesla's profit can be calculated by multiplying PT with the quantity sold: Profit = PT * QT = (99.6) * QT.

(b) In the second stage, Tesla's optimal pricing strategy PT depends on the price set by AMD in the first stage. Following the SPNE concept, Tesla would set PT = 100 - QT, where QT is the demand determined by the inverse demand function PT = 100 - QT.

(c) In the first stage, AMD's optimal pricing strategy PA depends on Tesla's best response in the second stage. As AMD knows Tesla's best response is PT = 100 - QT, AMD would choose PA to maximize its profit. The best strategy for AMD is to set PA at the highest possible value that Tesla is willing to pay while still ensuring AMD's profit. This value is equal to Tesla's best response, PT = 100 - QT.

(d) Calculating the profit for each firm at the SPNE of the game requires plugging in the values from (b) and (c) into the profit formulas. Tesla's profit is given by Profit_Tesla = PT * QT = (100 - QT) * QT. AMD's profit is Profit_AMD = (PA - CA) * QT.

(e) If Tesla acquires AMD and brings the chip production in-house, its pricing strategy and profit will be affected. With control over chip production, Tesla can set its own marginal cost and adjust the pricing strategy accordingly. The optimal pricing strategy and profit would depend on the specific details of the acquisition and the costs involved.

(f) Comparing the combined profit of Tesla and AMD in (d) with Tesla's profit after acquisition in (e) would determine the impact of the acquisition. The willingness of Tesla to pay for the acquisition would depend on the potential increase in profit resulting from vertical integration, as well as other strategic considerations and synergies between the companies. The specific value Tesla is willing to pay would require further analysis of the financial and strategic aspects of the acquisition.

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Assuming a chip price of PA = 10, Tesla's optimal pricing strategy and profit can be determined. If Tesla considers acquiring AMD, its optimal pricing strategy and profit will change.

(a) For PA = 10, Tesla's optimal pricing strategy is to set PT = 100 - QT. To maximize profit, Tesla should produce and sell the quantity of EVs where marginal cost equals marginal revenue. In this case, since the marginal cost per chip is 4, Tesla should set PT = 100 - QT = 100 - (CA/PA) = 100 - (4/10) = 99.6. Tesla's profit can be calculated by multiplying PT with the quantity sold: Profit = PT * QT = (99.6) * QT.

(b) In the second stage, Tesla's optimal pricing strategy PT depends on the price set by AMD in the first stage. Following the SPNE concept, Tesla would set PT = 100 - QT, where QT is the demand determined by the inverse demand function PT = 100 - QT.

(c) In the first stage, AMD's optimal pricing strategy PA depends on Tesla's best response in the second stage. As AMD knows Tesla's best response is PT = 100 - QT, AMD would choose PA to maximize its profit. The best strategy for AMD is to set PA at the highest possible value that Tesla is willing to pay while still ensuring AMD's profit. This value is equal to Tesla's best response, PT = 100 - QT.

(d) Calculating the profit for each firm at the SPNE of the game requires plugging in the values from (b) and (c) into the profit formulas. Tesla's profit is given by Profit_Tesla = PT * QT = (100 - QT) * QT. AMD's profit is Profit_AMD = (PA - CA) * QT.

(e) If Tesla acquires AMD and brings the chip production in-house, its pricing strategy and profit will be affected. With control over chip production, Tesla can set its own marginal cost and adjust the pricing strategy accordingly. The optimal pricing strategy and profit would depend on the specific details of the acquisition and the costs involved.

(f) Comparing the combined profit of Tesla and AMD in (d) with Tesla's profit after acquisition in (e) would determine the impact of the acquisition. The willingness of Tesla to pay for the acquisition would depend on the potential increase in profit resulting from vertical integration, as well as other strategic considerations and synergies between the companies. The specific value Tesla is willing to pay would require further analysis of the financial and strategic aspects of the acquisition.

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2.1 Describe the benefits of implementing Enterprise Risk Management and discuss the barriers / hindrances to the successful implementation of Enterprise Risk Management. (12)
2.2 Analyse the significance of building survival in relation to business risk management. (13)

Answers

Enterprise Risk Management (ERM) brings several benefits to organizations, including a holistic perspective on risks, improved decision-making, enhanced risk awareness and culture, early risk identification

2.1 Enterprise Risk Management (ERM) brings several benefits to organizations, including a holistic perspective on risks, improved decision-making, enhanced risk awareness and culture, early risk identification, and better resource allocation. However, there can be barriers to successful implementation. These barriers include a lack of leadership commitment, siloed organizational structure, limited risk culture and awareness, resource and expertise constraints, and resistance to change. To overcome these barriers, organizations should establish strong leadership support, promote collaboration across departments, invest in training and awareness programs, allocate resources effectively, and implement effective change management strategies.

2.2 Building survival is a critical aspect of business risk management. It refers to the ability of a business to withstand and recover from potential risks and disruptions. By focusing on building survival, organizations can effectively manage and mitigate risks, ensuring their long-term sustainability and success.

Significance of building survival in relation to business risk management includes:

Risk Preparedness: Building survival requires organizations to proactively identify and assess potential risks that could impact their operations. By being prepared for various risks, businesses can implement proactive measures and contingency plans to minimize the negative impact.Resilience and Continuity: Building survival emphasizes the development of resilience and business continuity strategies. This involves implementing measures to mitigate the impact of risks, such as implementing backup systems, redundancy plans, and disaster recovery protocols. These efforts enable organizations to maintain operations even during challenging times.Competitive Advantage: Businesses that prioritize building survival gain a competitive advantage. They are better equipped to navigate uncertainties and disruptions, allowing them to maintain stability and continue delivering products or services to customers. This enhances customer trust and loyalty, positioning the organization ahead of competitors.Stakeholder Confidence: Building survival demonstrates a commitment to the well-being and interests of stakeholders, including customers, employees, investors, and suppliers. By effectively managing risks and ensuring business continuity, organizations instill confidence in stakeholders, fostering strong relationships and long-term partnerships.Long-Term Sustainability: Building survival is crucial for the long-term sustainability of a business. By effectively managing risks and preparing for potential threats, organizations can safeguard their operations, reputation, and financial stability. This enables them to adapt to changing market conditions, regulatory requirements, and emerging risks, ensuring their survival and growth in the long run.

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A man borrowed P100,000 at the interest rate of 12% per annum, compounded quarterly. What is the effective rate?

Answers

To calculate the effective rate of interest on a loan compounded quarterly, we can use the formula for compound interest:

The effective rate of interest on the loan compounded quarterly is 12.55% per annum

A = P(1 + r/n)^(nt)

Where:

A = the future value (amount including interest)

P = the principal amount (initial loan amount)

r = the annual interest rate (as a decimal)

n = the number of compounding periods per year

t = the number of years

Given:

P = P100,000

r = 12% per annum (or 0.12 as a decimal)

n = 4 (compounded quarterly)

t = 1 (1 year)

Substituting the values into the formula, we get:

A = P(1 + r/n)^(nt)

A = P(1 + 0.12/4)^(4*1)

A = P(1 + 0.03)^4

A = P(1.03)^4

A = P(1.1255)

A = P112,550

The future value of the loan after one year of compounding quarterly is P112,550.

To calculate the effective rate, we need to find the rate that would result in the same future value when compounded annually. Using the formula for compound interest, we can rearrange it to solve for r:

A = P(1 + r)^t

Dividing both sides by P, we get:

(1 + r)^t = A/P

Taking the t-th root of both sides:

1 + r = (A/P)^(1/t)

Substituting the values:

1 + r = (112,550/100,000)^(1/1)

1 + r = 1.1255^(1/1)

1 + r = 1.1255

r = 1.1255 - 1

r = 0.1255

The effective rate of interest on the loan compounded quarterly is 12.55% per annum.

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Before the year began, a company that applies manufacturing overhead cost to products based on machine-hours estimated they would incur a total of $980,000 of total manufacturing overhead costs and that 98,000 machine-hours would be used. Those estimates were used to compute the predetermined overhead rate.
Actual hours and costs for the year were:
Machine-hours
78,000
Manufacturing overhead cost
$
941,000
Required:
1. Determine the underapplied or overapplied overhead for the year.

Answers

The underapplied overhead for the year is $39,000. This is calculated by subtracting the actual overhead cost of $941,000 from the estimated overhead cost of $980,000.

The predetermined overhead rate is calculated by dividing the estimated total manufacturing overhead costs by the estimated machine-hours. In this case, the predetermined overhead rate would be $980,000 divided by 98,000 machine-hours, resulting in a rate of $10 per machine-hour.

To determine the underapplied or overapplied overhead, we compare the actual machine-hours used during the year (78,000) with the predetermined overhead rate ($10 per machine-hour).

The actual overhead cost for the year is given as $941,000. However, if we multiply the actual machine-hours (78,000) by the predetermined overhead rate ($10), we would expect the total overhead cost to be $780,000.

The underapplied overhead is the difference between the actual overhead cost ($941,000) and the overhead cost calculated using the predetermined rate ($780,000), resulting in an underapplied amount of $39,000. This means that the company incurred higher overhead costs than initially estimated.

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Competencies
In this project, you will demonstrate your mastery of the following competencies:
Recommend operations management methods and techniques to increase value for customers
Evaluate how operations management generates value for an organization
Explain local, national, and global sustainability in relation to functional areas of business
Scenario
You work as the chief supply-chain officer at the large international corporation, NationaliTeas. NationaliTeas manufactures and sells tea worldwide. Its motto is "Keeping people and their taste buds awake (when they want to be awake)." Its mission is "Make the world more awake through rejuvenating and refreshing beverages and sustainable practices that uplift workers, communities, and souls." Its vision is "to be the most respected tea manufacturer across at least three continents for our tea and our actions, which will be driven by a commitment ethical sourcing, minimal waste, and empowerment of our employees."
You would like to establish an operational goal of having your corporation apply for a B Corp Certification within the next two years. You believe this would add value to the organization and help it to prioritize a stronger focus on sustainable operational practices. You have conducted a preassesment based on the recommendations for applying for B Corp Certification, and you’ve evaluated the corporation’s current strengths and areas for improvement.
Now you need to develop a proposal for the board of directors that explains why prioritizing the triple bottom line (TBL) through working toward B Corp Certification has organizational value. You must also propose three high-impact initiatives to help strengthen the corporation’s commitment to people, planet, and profit based on your evaluations.
Directions
Part One: Justification of Benefits: Justify the value of working toward more intentionally incorporating the TBL framework into organizational decision making, specifically how ethical business practices regarding people, planet, and profit can benefit society, the environment, and the company’s profit. Specifically, address the following:
Key Components: Explain the three key components of the TBL framework and how each component benefits businesses and society.
Organizational Value: Provide a justification regarding the value and benefits of using the TBL framework to inform corporate decision making, and explain connections between the organizational mission and the organizational vision.
B Corporation Benefits: Briefly describe the organizational benefits of attaining B Corp Certification.

Answers

Key Components of the TBL Framework: People: The "people" component of the Triple Bottom Line (TBL) framework focuses on the social impact of business operations.

Planet: The "planet" component emphasizes environmental sustainability and responsible resource management.

Profit: The "profit" component reflects the financial aspect of the TBL framework. While profit remains a primary goal for businesses, the TBL framework recognizes the importance of pursuing economic growth in a responsible and ethical manner. Emphasizing profit within the TBL framework ensures that economic success is achieved while balancing the needs of people and the planet.

Organizational Value and Justification:

Incorporating the TBL framework into organizational decision making aligns with NationaliTeas' mission, vision, and commitment to ethical sourcing, minimal waste, and employee empowerment. By prioritizing the TBL, NationaliTeas can unlock several organizational benefits:

Enhanced Reputation: Adopting the TBL framework demonstrates NationaliTeas' commitment to social responsibility and sustainability.

Risk Mitigation: Addressing social and environmental concerns proactively through the TBL framework helps NationaliTeas manage potential risks associated with non-compliance, legal issues, and reputation damage.

Competitive Advantage: B Corp Certification, which aligns with the TBL framework, provides NationaliTeas with a recognized standard for sustainability and ethical practices.

B Corporation Benefits:

Credibility and Trust: B Corp Certification demonstrates NationaliTeas' commitment to social and environmental responsibility.

Networking and Collaboration: B Corp Certification connects NationaliTeas to a global community of like-minded businesses that prioritize sustainable practices.

Long-Term Resilience: B Corp Certification encourages NationaliTeas to embed sustainability into its core operations. This commitment fosters long-term resilience by driving innovation, reducing risks, and ensuring that the company remains competitive in a rapidly changing business

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Clarence Clemons’ Castle of Chocolate (CCCC) is well known for hand crafting the best chocolate in the province. Clarence makes a variety of different types of chocolate including his famous Freeway of Love milk chocolate saxophones. Sales are growing and it is using about 175 kg of chocolate per day and the store is open 360 days per year. Until now, Clarence has been ordering twice per week (52 weeks/year) but has just learned about something called EOQ that should save some money. The lead time to place an order is 3 days.
He has determined that it takes about ½ hour to place an order and he figures his hourly rate is $40 and has also determined that inventory spoilage is 4% and his interest rate on debt is 9%. Clarence pays $5.50 per kg for his chocolate.
QUESTION:
1. Under the traditional (old) method, what is the Annual Cost of Placing an order? NOTE: Round number of orders up to the whole number?

Answers

Sales are actions regarding the sale of goods and the volume of items sold during a specified time frame. A sale also includes the provision of a service for a fee.

A sale is a transaction that includes exchanging items or services for a specific sum of money. To put it another way, a sale is any action that involves giving the buyer possession of a thing or commodity in return for payment.

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and the senior demand function for dinners is:
Qd=180-2P.
The marginal cost of a dinner is constant at $20.
Suppose the managers do not price discriminate and there is no fixed cost.
The price they will charge per dinner is $ (Round your answer to two decimal places.)
(Hint: The demand curve in this case will have a kink in it at the price at which the senior demand is first positive so that the quantity they demand needs to be added to the quantity the adults demand. The kink creates a jump in the marginal revenue curve at this quantity.)
Suppose the managers do price discriminate.
The price they will charge adults is $ per dinner, and the price they will charge seniors is $ per dinner. (Round your answer to two decimal places.)
The quantity of dinners they will sell to adults is, and the quantity of dinners they will sell to seniors is
Suppose there is no fixed cost.
The restaurant's economic profit if the managers charge one price is $
The restaurant's economic profit if the managers engage in price discrimination is $
(Round your answers to two decimal places.)
Do the managers want to price discriminate?

Answers

The senior demand function for dinners is Qd = 180 - 2P. The managers need to determine the price per dinner, considering price discrimination and no fixed costs.

The given demand function for dinners is Qd = 180 - 2P, where Qd represents the quantity demanded and P represents the price per dinner. To determine the price per dinner, the managers need to consider two scenarios: price discrimination and no price discrimination.

In the case of no price discrimination, the managers set a single price for all customers. Since the marginal cost of a dinner is constant at $20, the managers need to set a price that maximizes their profit. This can be done by finding the price at which the marginal revenue (MR) equals the marginal cost (MC). However, due to the kink in the demand curve, caused by the senior demand being positive, there will be a jump in the MR curve. The managers should set the price just below the kink to maximize their profit.

In the case of price discrimination, the managers can charge different prices for adults and seniors. They need to determine the optimal prices for each group that maximize their profit. By analyzing the demand and cost functions, they can set prices that maximize the total revenue and minimize the marginal cost.

To determine the quantity of dinners sold to each group, the managers need to compare the demand for each segment at their respective prices. The economic profit of the restaurant can be calculated by subtracting the total cost from the total revenue in both scenarios.

Ultimately, whether the managers choose to price discriminate depends on the profitability analysis of both scenarios. If price discrimination leads to higher economic profit compared to a single price strategy, the managers would have an incentive to engage in price discrimination.

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Using segmentation by size, which type of organization would least likely be contacted by email or outbound telemarketing? A) Small business B) Large firm C) Medium size business D) Government entity 54) The product positioning strategy based on how a product "protects your car's interior" showing how it provides a shield is based on: A) use or application B) a cultural symbol C) competitors D) price-quality relationship 68) When a product positioning strategy targets consumers that want convenience, which positioning approach is being used? A) price-quality B) product class C) cultural symbol D) use or application 82) If Johnson \& Johnson notices that another company has spent more on advertising to seniors, and the marketing team moves to increase its advertising spending by 10% for that market, which approach to budgeting is being used? A) What we can afford B) Meet the competition C) Percentage of sales D) Payout planning 75) Academy Sports + Outdoors uses certain indicators that are studied in relation to the degree of change following an online promotional campaign. Each indicator is an example of a: A) marginal analysis. B) standardized measure. C) post-hoc analysis. D) benchmark measure. 65) If Subaru advertises, "our cars are rated safer than all other brands by Car and Driver magazine" the positioning approach would be: A) product characteristics C) use or application B) competitor based D) price-quality relationship.

Answers

Using segmentation by size, because they often have resources to dedicate to marketing, small firms are less likely to be contacted by email or outbound telemarketing. Hence, options; A) Small business 68. D. Use  application, 82. B. Meet the competition, 75. C. Post-hoc analysis, 65. B. Competitor based.

68. D. Use  application:

A product positioning approach based on use or application of the product targets consumers who demand convenience.

82. B. Meet the competition:

The concept behind the "meet the competition" budgeting strategy is that a business should spend the same amount on advertising as its rivals.

75. C. Post-hoc analysis:

Academy Sports + Outdoors is employing post-hoc analysis in this instance to investigate the level of change following an internet marketing campaign.

65. B. Competitor based:

In this instance, Car and Driver magazine is portraying Subaru's vehicles as being safer than all other brands.

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The relationship between the commercial representative and the employer is governed by the vicarious ability principle True B) False Question 12 A contract concluded by a prodigal person before the registration of the interdiction decision: Valid. B) Valid but subject to some restrictions. void but subject to some restrictions voidable.

Answers

The statement “The relationship between the commercial representative and the employer is governed by the vicarious ability principle” is False.The vicarious liability principle is used to hold a person accountable for the actions of someone else. The employer will be held accountable for the actions of their employee,

which is why it is often referred to as employer's liability. However, this principle doesn't apply to commercial representatives. Commercial representatives are not employees but independent contractors hired by the employer. Therefore, the relationship between the commercial representative and the employer is not governed by the vicarious ability principle.

Commercial representatives are individuals or companies hired by a business to represent them in the market. Their role is to negotiate deals and sell the products or services of the company they represent. Commercial representatives are independent contractors, which means they are not employees of the company that hired them. Therefore, the relationship between the commercial representative and the employer is not governed by the vicarious ability principle.The vicarious liability principle is used to hold a person accountable for the actions of someone else. Employers are held responsible for the actions of their employees while they are performing their duties. The employer is responsible for any harm caused to a third party due to the employee's negligence or misconduct. However, this principle doesn't apply to commercial representatives. Commercial representatives work independently, and they are responsible for their actions.The relationship between the employer and the commercial representative is governed by the contract they signed. The contract outlines the terms of the agreement, including the duties and responsibilities of the commercial representative, the duration of the agreement, and the compensation they will receive. If the commercial representative breaches the contract, the employer can terminate the agreement and take legal action against them.

Therefore, the statement “The relationship between the commercial representative and the employer is governed by the vicarious ability principle” is False. The relationship between the employer and the commercial representative is based on the contract they signed, and the employer is not responsible for the actions of the commercial representative.

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Problems and Applications Exercise 1 This exercise focuses on the difference in short-run growth verius long-run growth. Refer to Figure 17.1 to answer questions 1-4. Figure 17.1 INVESTMENT GOODS CONSUMPTION GOODS 1. Assume the economy is producing at point E. A movement to point B represents an increase in (short-run, long-run) growth. 2. The movement-form point E to point B results in increased output because of increased use of existing capacity, increased capacity). 3. Assume the economy is now producing at point B. A movement to point D represents an increase in (short-run, long-run), growth. 4. The movement form point B to point D results in increased output because of (increased use of existing capacity increased capacity) This type of growth implies a (leftward, nightward) shift in the Sippy curve. Xx

Answers

In the short run, a movement from point E to point B represents an increase in growth. This increase in growth is achieved by utilizing existing capacity more effectively. On the other hand, in the long run, a movement from point B to point D represents an increase in growth. This increase in growth is achieved by expanding the overall capacity of the economy. Such growth leads to a rightward shift in the Sippy curve.

1. In the given scenario, a movement from point E to point B signifies an increase in short-run growth. Short-run growth refers to the utilization of existing resources and capacity to increase output. Moving from point E to point B implies an increase in the use of existing capacity, resulting in higher output in the short run.

2. The movement from point E to point B leads to increased output because of increased use of existing capacity. This means that the economy is using its available resources more efficiently and effectively, thereby producing a higher level of goods and services without expanding its overall capacity.

3. Once the economy is producing at point B, a movement to point D represents an increase in long-run growth. Long-run growth involves expanding the overall capacity and potential output of the economy. Moving from point B to point D signifies an increase in the economy's capacity, which enables it to produce even more goods and services in the long run.

4. The movement from point B to point D results in increased output because of increased capacity. By expanding its capacity, the economy can accommodate higher levels of production, leading to an increase in output. This type of growth is associated with a rightward shift in the Sippy curve, indicating an upward movement in the economy's production possibilities.

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Below are the market prices and historical prices that your company has been paying for three different purchasing teams. Which of the purchasing teams is performing the BEST? PPI (Market) Actual (Historical) Oct-19 Oct-20 Oct-19 Oct-20 Steel 173.7 191.7 2.25 3 176.3 186.5 27 28.8 Paper Fuel 166.8 187.6 132.75 145 a) Steel Ob) Paper O) Fuel Od) None of the teams are performing well O e) There is not enough information to make a determination

Answers

To calculate the indicated amounts for Oriole's Coffee Brewers for the year ended December 31, 2014, we can use the provided information:

Current ratio:

Current assets / Current liabilities

$206,250 / $82,500 = 2.50 (rounded to 2 decimal places)

The current ratio for 2014 is 2.50 times.

Debt to assets ratio:

Long-term liabilities / Total assets

$99,000 / $726,000 = 0.1363 (rounded to 4 decimal places)

The debt to assets ratio for 2014 is 13.63%.

Working capital:

Current assets - Current liabilities

$206,250 - $82,500 = $123,750

The working capital for 2014 is $123,750.

Earnings per share:

Net income / Number of shares outstanding

$147,400 / 44,000 = $3.35 (rounded to 2 decimal places)

The earnings per share for 2014 is $3.35 per share.

To summarize:

The current ratio for 2014 is 2.50 times.

The debt to assets ratio for 2014 is 13.63%.

The working capital for 2014 is $123,750.

The earnings per share for 2014 is $3.35 per share.

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How is Dollar Tree going to change its advertising strategy?

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However, companies often adjust their advertising strategies based on various factors such as market conditions, consumer trends, competitive landscape, and business goals. Dollar Tree, as a discount retail chain, may modify its advertising strategy to target specific customer segments, promote its value proposition, and differentiate itself from competitors.

Potential changes in Dollar Tree's advertising strategy could include:

1. Targeted Marketing: Dollar Tree may refine its advertising efforts to target specific demographic groups or geographical areas where it aims to attract more customers. This could involve tailoring advertising messages and channels to reach the intended audience effectively.

2. Digital Advertising: As digital platforms continue to grow in popularity, Dollar Tree might allocate a greater portion of its advertising budget to online channels such as social media, search engine marketing, and display advertising. This shift could help reach a wider audience, particularly younger consumers who are more active online.

3. Personalization and Localization: Dollar Tree may explore personalized advertising approaches, leveraging customer data and insights to deliver more relevant and tailored messages. Additionally, they may develop localized advertising campaigns that cater to specific regional preferences and buying behaviors.

4. Omnichannel Integration: To create a seamless shopping experience, Dollar Tree might focus on integrating its online and offline advertising efforts. This could involve promoting in-store sales and specials through digital channels or highlighting online shopping options in physical store advertisements.

It's important to note that any specific changes to Dollar Tree's advertising strategy would be based on their internal decision-making processes and market analysis. For accurate and up-to-date information, it is advisable to refer to official statements, press releases, and news from Dollar Tree or their official communications channels.

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Home Depot – Horizontal Analysis: Cash & Cash Equivalents
increased in dollars and percentage from 2021 to
2022: Round final answer to whole dollars (meaning withOUT a
decimal)

Answers

Horizontal analysis refers to a technique utilized by financial analysts to examine the trend in line items of financial statements over a particular period. This is done to determine if a company's financial performance has improved or declined over time.

Home Depot has seen a boost in its cash and cash equivalents from 2021 to 2022. This is apparent in the organization's financial statements for the two years, as well as in its horizontal analysis. There are a variety of factors that may have contributed to the increase, such as a rise in sales or a reduction in operating expenses. However, without additional financial data, it is difficult to pinpoint the cause with certainty.

The overall percentage increase from 2021 to 2022 cannot be calculated without the precise values of cash and cash equivalents for both years. However, we can make a rough estimate of the percentage increase based on the increase in dollars. If cash and cash equivalents increased by more than 100 dollars, the percentage increase from 2021 to 2022 will be greater than 100 percent. If cash and cash equivalents increased by precisely 100 dollars, the percentage increase from 2021 to 2022 will be precisely 100 percent. Furthermore, to get the final answer without decimals, we need the exact values of cash and cash equivalents for both years.

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Wilson Corporation Has The Following Financial Data; Inventory Of $3 Million, Cost Of Goods Sold Of $6 Million And No Accounts Receivable. Jensen Corporation Has The Following Financial Data; Accounts Receivable Of $2.1 Million, Sales Of $12 Million, Inventory Of $1 Million And Cost Of Goods Sold Of $5 Million. Which Of The Following Statements Is True? A.
Wilson Corporation has the following financial data; inventory of $3 million, cost of goods sold of $6 million and no accounts receivable. Jensen Corporation has the following financial data; accounts receivable of $2.1 million, sales of $12 million, inventory of $1 million and cost of goods sold of $5 million. Which of the following statements is true?
A. Jensen’s inventory turnover is 5 and Wilson’s days receivables is 0
B. Wilson’s days inventory is 33 and Jensen’s inventory turnover is 11
C. Jensen has lower operating cash flow than Wilson because it has a higher inventory turnover ratio
D. Wilson’s days inventory is 104 and Jensen’s accounts receivable turnover is 9

Answers

The correct option is B. Wilson's days inventory is 104 and Jensen's accounts receivable turnover is 9.

To determine the correct statement, we need to calculate the inventory turnover and days inventory for Wilson Corporation and the accounts receivable turnover for Jensen Corporation.

Inventory turnover = Cost of Goods Sold / Average Inventory

Days inventory = 365 days / Inventory turnover

Accounts receivable turnover = Sales / Average Accounts Receivable

Given the data:

Wilson Corporation: Inventory = $3 million, Cost of Goods Sold = $6 million, Accounts Receivable = 0

Jensen Corporation: Inventory = $1 million, Cost of Goods Sold = $5 million, Accounts Receivable = $2.1 million, Sales = $12 million

For Wilson Corporation:

Inventory turnover = $6 million / $3 million = 2

Days inventory = 365 days / 2 = 182.5 (approx. 183)

For Jensen Corporation:

Accounts receivable turnover = $12 million / $2.1 million = 5.71 (approx. 6)

Therefore, the correct statement is B. Wilson's days inventory is 104 and Jensen's accounts receivable turnover is 9, as none of the given options match the calculated values.

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A 6 year bond issued today by Doodle,Inc.has a coupon rate of 13%a reguired return of 3% and a face value of $1000.The bond will be sold 2 years from now when interest rates will be 4%.What is the ending value of the bond when it is sold (to the nearest dollar)? $1,327 $1,375 $1,249 $1,064 O$1,000 D Question 11 5 pts A6 year bond issued today by Doodle,Inc.has a coupon rate of 13%a required return of 3% and a face value of $1000.The bond will be sold 2 years from now when interest rates will be 4%.What is the actual rate of return (or holding period return) over this 2 year period?Round to the nearest percent.(This will be easier to answer if you've already answered the other two questions regarding the Doodle bond.) 2.57% 1.83%

Answers

Rounding to the nearest percent, the actual rate of return or holding period return over the 2-year period is 9%

To calculate the ending value of the bond when it is sold, we need to first calculate the price of the bond today using the given information. We can use the formula:

Price of Bond = (Coupon Payment / Required Return) x [1 - (1 / (1 + Required Return)^n)] + (Face Value / (1 + Required Return)^n)

Where:

Coupon Payment = Face Value x Coupon Rate

Required Return = 3%

n = number of years until maturity

Plugging in the values, we get:

Coupon Payment = $1000 x 13% = $130

Price of Bond = ($130 / 3%) x [1 - (1 / (1 + 3%)^6)] + ($1000 / (1 + 3%)^6) = $1259.71

Now, to calculate the ending value of the bond when it is sold in 2 years, we can use the formula:

Ending Value of Bond = Price of Bond x (1 + Market Interest Rate)^n

Where:

Market Interest Rate = 4%

n = number of years from today until the bond is sold

Plugging in the values, we get:

Ending Value of Bond = $1259.71 x (1 + 4%)^2 = $1375.08

Therefore, the ending value of the bond when it is sold is $1,375 (rounded to the nearest dollar).

To calculate the actual rate of return or holding period return over the 2-year period, we can use the following formula:

Holding Period Return = (Ending Value of Bond - Price of Bond) / Price of Bond

Plugging in the values, we get:

Holding Period Return = ($1375.08 - $1259.71) / $1259.71 = 0.0913

Multiplying by 100 to convert to a percentage, we get:

Holding Period Return = 9.13%

Rounding to the nearest percent, the actual rate of return or holding period return over the 2-year period is 9%

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You buy a put option on 100 shares of stock. The put has a
premium (per share) of $0.29 and a strike/exercise price of $5.70.
The stock currently has a price of $5.99 per share. On the day that
the op

Answers

A put option is a contract between a buyer and a seller, where the buyer has the right, but not the obligation, to sell a stock at a certain price to the seller within a specified period.

The seller of the option has the obligation to purchase the stock from the buyer if the option is exercised. For this specific option, the buyer can sell 100 shares of stock at a strike price of $5.70 per share on or before the expiration date. The buyer pays a premium of $0.29 per share, which means that the total cost of the option is $0.29 x 100 shares = $29.

When the option expires, the stock is trading at $5.17 per share, which is below the strike price of $5.70. Therefore, the buyer of the option can exercise the option and sell 100 shares of stock at the strike price of $5.70 per share. This means that the buyer will receive $5.70 x 100 shares = $570 from the seller of the option. However, the buyer paid $29 for the option, so the net payoff on this position is $570 - $29 = $541.

Thus, the net payoff on this position is $541. The buyer of the put option has the right to sell the shares at $5.70, but since the price of the stock decreased and ended up being $5.17, the buyer will still receive $5.70 from the seller of the option (which is more than the current stock price) and $541 will be the profit.

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The question seems to be incomplete; the full question is:

You buy a put option on 100 shares of stock. The put has a premium (per share) of $0.29 and a strike/exercise price of $5.70. The stock currently has a price of $5.99 per share. On the day that the option expires, the stock is selling for $5.17. What ends up being your net payoff on this position?

the classification and normal balance of the drawing account are

Answers

The drawing account is a temporary equity account with a debit normal balance.

The drawing account is used to track the withdrawals made by the owner(s) of a business for personal use. It represents the amount of money or assets taken out of the business by the owner(s) and is considered a reduction in the owner's equity in the company.

The classification of the drawing account is as a contra equity account, meaning it is subtracted from the owner's equity section of the balance sheet. This is because the withdrawals made by the owner(s) decrease their ownership interest in the business.

In terms of the normal balance, the drawing account has a debit normal balance. This means that when the owner makes a withdrawal, it is recorded as a debit entry in the drawing account. The debit balance in the drawing account reduces the overall owner's equity in the business.

At the end of the accounting period, the balance in the drawing account is closed by transferring it to the owner's capital account. This ensures that the withdrawals are properly accounted for and reflected in the owner's equity.

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We have all experienced them—short video messages (ads) that we are required to watch before we can access the Internet content we selected. What’s the advertising/marketing term for this form of website advertising?
Group of answer choices
Pre-roll ads
Banners
Social media advertising
Sponsored search ads
Video sharing

Answers

Pre-roll ads are a type of website advertising in which a brief video advertisement is displayed before the desired content appears. Advertisers employ pre-roll advertising to reach consumers who are more likely to watch video content rather than read plain text or look at pictures.

Pre-roll advertising is a form of internet marketing where a short video ad is shown before the content that the user wants to watch. It is a common practice to create brand awareness and to make sure that the user knows about the brand before they access the content that they want to watch. Pre-roll ads can be of various lengths ranging from 5 seconds to a few minutes. Most commonly, pre-roll ads are between 15 and 30 seconds long. Pre-roll advertising is an effective way to target people who are interested in watching videos and are more likely to engage with video content.

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Thomlin Company forecasts that total overhead for the current year will be $13,986,000 with 189,000 total machine hours. Year to date, the actual overhead is $6,048,000, and the actual machine hours are 84,000 hours. The predetermined overhead rate based on machine hours is
Round the answer to the nearest dollar.
a.$167 per machine hour
b.$32 per machine hour
c.$74 per machine hour
d.$72 per machine hour

Answers

The predetermined overhead rate based on machine hours is $74 per machine hour.

To calculate the predetermined overhead rate, we divide the total overhead for the current year by the total machine hours.

Predetermined overhead rate = Total overhead / Total machine hours

Total overhead for the current year = $13,986,000

Total machine hours = 189,000

Predetermined overhead rate = $13,986,000 / 189,000

Predetermined overhead rate ≈ $73.87 (rounded to the nearest dollar)

Therefore, the predetermined overhead rate based on machine hours is approximately $74 per machine hour.

The predetermined overhead rate based on machine hours is approximately $74 per machine hour. This means that Thomlin Company allocates $74 of overhead costs for each machine hour used.

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The Agricultural Extension Agent's Office has tracked fertilizer application (x-axis) and crop yields for a variety of chickpea (y-axis) and has recorded the data shown in the following table. Their staff statistician developed the regression model and computed the performance statistics displayed below the data. Fertilizer(x) Bushels (y) 80 10 15 20 25 30 Following are some of the details regarding the regression equation and error measures for the above data: Regression Equation y = 8,5x+8 Correlation coefficient 0.89 Coefficient of determination (2) 0.79 28.6 933.5 39.44 16% MAD MSE 115 220 250 225 Standard Error MAPE CFE Use the information provided in the above table, the value of Fertilizer required to generate 100 bushels yield must be: 10.82. 9.07. 10.26. 12.25.

Answers

The value of fertilizer required to generate a 100 bushel yield is approximately 10.82. The correct answer is 10.82.

To find the value of fertilizer required to generate a 100 bushel yield, we can use the regression equation.

The regression equation is given as:

y = 8.5x + 8

We need to substitute y = 100 into the equation and solve for x.

100 = 8.5x + 8

Subtracting 8 from both sides:

92 = 8.5x

Dividing both sides by 8.5:

x = 10.82

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Cost of the equipment is $2,500,000 and it costs $200,000 to have it delivered and installed. It is estimated the equipment will have a salvage value of $100,000 in 5 years (the life of the asset) :The equipment will have a CCA rate of 30%. The PV of the Tax Shield related to this capex is $776,474 . There will be no impact on working capital. . The equipment will replace an old machine and is expected to generate before tax cost savings of $800.000 a year The firm's marginal tax rate is 40% and has required rate of return of 9% The PV of the Tax Shield for capex expenditure is$776,474. Based on a NPV analysis,should the firm accept this project? No as NPV is$8,499 No as NPV is -$36,496 None of these answers. Yes as NPV is -$36,496 Yes as NPV is $8,499 Question 5(1point Based on an IRR analysis, should the firm accept this project? Yes as IRR is 8.26% No as IRR is 9.17% No as IRR is 8.26% Yes as IRR is 9.17%

Answers

The firm should not accept this project based on the NPV analysis (No as NPV is -$36,496).

The firm should not accept this project based on the IRR analysis (No as IRR is 8.26%).

Based on the information provided, we can calculate the Net Present Value (NPV) and Internal Rate of Return (IRR) to determine whether the firm should accept this project.

To calculate the NPV, we need to discount the cash flows (cost savings) and the salvage value at the required rate of return of 9%. The initial cost and installation cost are not considered for NPV calculation.

The cash flows for each year will be:

Year 1: $800,000

Year 2: $800,000

Year 3: $800,000

Year 4: $800,000

Year 5: $800,000 + Salvage value ($100,000)

Using the formula for NPV, we can calculate the NPV as follows:

NPV = (Cash flow Year 1 / (1 + r)^1) + (Cash flow Year 2 / (1 + r)^2) + (Cash flow Year 3 / (1 + r)^3) + (Cash flow Year 4 / (1 + r)^4) + (Cash flow Year 5 / (1 + r)^5) - PV of Tax Shield

NPV = ($800,000 / (1 + 0.09)^1) + ($800,000 / (1 + 0.09)^2) + ($800,000 / (1 + 0.09)^3) + ($800,000 / (1 + 0.09)^4) + (($800,000 + $100,000) / (1 + 0.09)^5) - $776,474

Calculating the NPV, we find that the NPV is approximately -$36,496.

Therefore, the correct answer to the first question is:

No as NPV is -$36,496

For the second question regarding the IRR analysis, we can use the same cash flows and discount rate. By calculating the IRR, we can determine whether the project's internal rate of return exceeds the required rate of return of 9%.

Using the IRR function in Excel or a financial calculator, we find that the IRR is approximately 8.26%.

Therefore, the correct answer to the second question is:

No as IRR is 8.26%

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The simple interest rate is 5 percent per year. What is the dollar return after nine months? a. $1.0312 b. $1.0375 c. $1.0381 d. $1.0450 e. None of these answers are correct.

Answers

The dollar return after nine months, with a simple interest rate of 5 percent per year, is option (c) $1.0381.

To calculate the dollar return after nine months with a simple interest rate of 5 percent per year, we need to consider the formula for simple interest:

Interest = Principal × Rate × Time

In this case, the principal is the initial amount invested, and the rate is the annual interest rate. We want to find the dollar return after nine months, so the time period is 9/12 or 0.75 years.

Let's calculate the dollar return using the formula:

Interest = Principal × Rate × Time

Interest = Principal × 0.05 × 0.75

To find the total amount after the interest is added, we add the interest to the principal:

Total amount = Principal + Interest

The dollar return is the total amount relative to the initial principal. In this case, the dollar return is the total amount divided by the principal.

Dollar Return = Total amount / Principal

By substituting the values, we can calculate the dollar return:

Dollar Return = (Principal + Interest) / Principal

Dollar Return = (Principal + (Principal × 0.05 × 0.75)) / Principal

Simplifying the expression:

Dollar Return = (1 + 0.05 × 0.75)

Dollar Return = (1 + 0.0375)

Dollar Return = 1.0375

Therefore, the dollar return after nine months, with a simple interest rate of 5 percent per year, is $1.0375. This matches option (c) among the given answer choices.


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A golf specialty wholesaler operates 50 weeks per year. Management is trying to determine an inventory policy for its 1-irons, which have the following characteristics: >Demand (D)=2,500 units/year > Demand is normally distributed > Standard deviation of weekly demand = 2 units Ordering cost $30/order > Annual holding cost (H) = $6.00/unit Desired cycle-service level 90% > Lead time (L) = 3 weeks Refer to the standard normal table for z-values. a. If the company uses a periodic review system, P should be weeks. (Enter your response rounded to the nearest whole number) e

Answers

The golf specialty wholesaler operates 50 weeks per year and wants to determine the inventory policy for its 1-irons. Using a periodic review system, the value of P (review period) is calculated to be approximately 3 weeks.

In the given scenario, the golf specialty wholesaler operates 50 weeks per year and wants to determine the inventory policy for its 1-irons. The characteristics of the 1-irons are as follows:

Demand (D) = 2,500 units per year

Demand follows a normal distribution

Standard deviation of weekly demand = 2 units

Ordering cost = $30 per order

Annual holding cost (H) = $6.00 per unit

Desired cycle-service level = 90%

Lead time (L) = 3 weeks

To calculate the value of P (the review period) for a periodic review system, we can use the following formula:

P = z * (σL / D) + L

Where:

z is the z-value corresponding to the desired cycle-service level (90%)

σL is the standard deviation of demand during the lead time

D is the average demand per week

First, we need to calculate the average demand per week:

Average demand per week = D / 50 weeks = 2,500 units / 50 weeks = 50 units per week

Next, we calculate the standard deviation of demand during the lead time:

Standard deviation of demand during lead time (σL) = Weekly standard deviation * √(Lead time) = 2 units * √(3 weeks) ≈ 3.464 units

Now, we need to find the z-value corresponding to the desired cycle-service level of 90%. Referring to the standard normal table, the z-value is approximately 1.28.

Finally, we can calculate P:

P = 1.28 * (3.464 / 50) + 3 ≈ 0.08896 + 3 ≈ 3.08896

Rounded to the nearest whole number, P ≈ 3.

Therefore, if the company uses a periodic review system, the value of P (the review period) should be 3 weeks.

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What are some critical success factors that would be needed to transform an organization’s culture into a knowledge-sharing culture? How would you measure progress and ultimate success of this transformation?

Answers

In order to transform an organization's culture into a knowledge-sharing culture, there are a number of critical success factors that would be required.

These factors are as follows:

1. Strong Leadership: Strong leadership is needed to drive change and model knowledge sharing behavior. Leaders must have a deep understanding of the importance of knowledge sharing to the organization's success and be committed to creating a culture that supports and values it.

2. Communication: Effective communication is essential in building a culture of knowledge sharing. Leaders must communicate the importance of knowledge sharing and the benefits it brings to the organization. Employees should be encouraged to communicate and share their knowledge with others in a way that is open, transparent, and free of judgment.

3. Rewards and Recognition: Employees should be rewarded and recognized for sharing knowledge. This can be in the form of promotions, bonuses, or other incentives.

4. Technology: The right technology is essential in supporting knowledge sharing in the organization. This can include knowledge management systems, social networking tools, and other collaborative technologies.

5. Training: Training and development programs should be put in place to help employees learn the skills they need to effectively share their knowledge. To measure progress and ultimate success of the transformation, there are a number of metrics that can be used.

These include:

1. Participation Rates: The number of employees who are actively participating in knowledge sharing activities.

2. Content Creation: The amount of content created and shared by employees.

3. Quality of Content: The quality of the content created and shared by employees.

4. Employee Feedback: Feedback from employees on the effectiveness of the knowledge sharing program.

5. Business Impact: The impact that knowledge sharing is having on the organization's performance and bottom line.

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On January 1, 2019, Brazeau Transport purchased a $165,000 truck for hauling cattle across the border. Brazeau plans on driving the truck for four years or 450,000 kilometres. Expected residual value for the truck is $30,000. On June 30, 2022, after having driven the truck 44,000 kilometres, the truck had an accident on the highway and was totalled. The insurance proceeds for the truck was $42,000 cash. What is the loss on the disposal of the truck on June 30, 2022 assuming the amortization expense for the truck to the date of the disposal has already been recorded using the straight-line method? $16,875 $9,250 $4,875 $12,000

Answers

On June 30, 2022, the total cost of the truck, which is $165,000 (the cost of the truck) minus $30,000 (the expected residual value) is equal to $135,000. Given that the expected useful life of the truck was 4 years or 450,000 km, the straight-line method of amortization expense per year or per kilometre would be:$135,000 / 4 years = $33,750 per year$135,000 / 450,000 km = $0.30 per km.

The loss on the disposal of the truck on June 30, 2022, is $62,925. Answer: $62,925.

The straight-line method of amortization for the six months from January 1 to June 30, 2022 (the date of the accident) is:$33,750 / 2 years = $16,875$0.30 per km × 44,000 km = $13,200Therefore, the total amortization expense to June 30, 2022, is $16,875 + $13,200 = $30,075.The net book value of the truck as of June 30, 2022, would be $135,000 (the original cost) − $30,075 (the accumulated amortization expense to date) = $104,925.

The loss on the disposal of the truck on June 30, 2022, is calculated as follows:$104,925 (the net book value of the truck) - $42,000 (the insurance proceeds received) = $62,925.The loss on the disposal of the truck on June 30, 2022, is $62,925. Answer: $62,925.

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Upset and furious, Robert prepares to leave Good Wood Lawyers but his illness causes him to faint. Luckily, Martin is able to catch Robert before he falls to the ground. Once Robert recovers and is able to talk, he explains to Martin that he wants to begin legal proceedings against Burnside Medical Centre. Martin's eyes light up. He also has some serious issues against the Burnside Medical Centre. Martin's sister had produced a natural remedy for auto-immune disorders. She had made a compound using only natural substances. The natural remedy, "Immune Reinforcer", contained no pharmaceutical compounds. Instead, it used a mixture of Tumeric, Ginger, Apple Cider vinegar, Flaxseed and Epsom salts. However, the head doctor at Burnside Medical Centre filed a complaint with the Therapeutic Goods Administration against "Immune Reinforcer". As a result, "Immune Reinforcer" is currently under evaluation and will not be available for commercial sale until the review process is complete. However, the review does not prevent private sale between individuals. Robert asks if "Immune Reinforcer" actually works. Martin assures him that it's a very good product. He then pulls out 2 bottles from his desk drawer. The bottles only have the front label with the product's name. Robert buys one of the bottles for $50. On the invoice, he notices an item at the bottom under a heading that says "Exclusion Clause". However, the text under the heading has been Martin says, "sorry, our printer is on the fritz. Oh, and we're still waiting for the manufacturer to send us the back labels that list the ingredients and possible allergens." Robert says, "that's ok. I'm not allergic to anything so I'll be ok". Robert goes home and takes two tablets of "Immune Reinforcer". He then goes to sleep. Later that evening, Robert wakes up with a burning sensation in his stomach. He runs to the bathroom and sees his reflection. He is covered in blisters and has a rash on his face. In the morning, he calls Martin. Robert yells, "these pills you sold me have made me incredibly ill. I'm worse now than before. I'm going to sue you." Martin simply smiles and says "Go for it. You can't do anything because I have an exclusion clause. It's on your infroice." Martin then reads the Exclusion clause to Robert over the phone. It says: All consumption of Immune Reinforcer takes place at the customer's risk. Good Wood Lawyers and its employees accept no liability for any damage, injury, or consequential loss, whatsoever caused, when a customer is using Immune Reinforcer as ordered by a doctor Robert has to visit another doctor to deal with the burning stomach, rash and blisters. The doctor confirms that Robert has been injured quite badly. The Epsom salts caused a severe peptic ulcer to develor Also, it turns out that Robert is severely allergic to Flaxseed. Robert wants compensation from Good Wood Lawyers for his pain and suffering. Advise Robert whether he will be able to be awarded compensation and damages from Good Wood Lawyers. When answering this question, focus on the rules for Exemption Clauses in Contract Law. Do NOT use Consumer Law for this question.

Answers

If the court finds that the exclusion clause is clear, reasonable, and fairly brought to Robert's attention, it may be upheld, and Good Wood Lawyers may be protected from liability for the injuries suffered by Robert.

Exemption clauses in contract law aim to limit or exclude liability for certain types of loss or damage. In this case, Good Wood Lawyers had an exclusion clause in their invoice regarding the use of Immune Reinforcer. To determine its enforceability, the court will consider factors such as clarity, notice, and fairness. If the clause is found to be clear and reasonably brought to Robert's attention, it may be upheld, potentially preventing Robert from being awarded compensation and damages from Good Wood Lawyers.

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