True. The ability to connect with customers and manage internal organizational links is crucial for an effective supply chain.
By establishing strong connections, organizations can enhance communication, responsiveness, and overall efficiency in the supply chain process.
The effectiveness of a supply chain relies heavily on how well an organization can connect with its customers and manage internal links. Here's why:
1. Customer Connection: Effective supply chains prioritize customer satisfaction and demand fulfillment. By establishing direct connections with customers, organizations can gather feedback, understand their needs, and align their supply chain processes accordingly. This customer-centric approach improves responsiveness and helps organizations meet customer expectations.
2. Internal Organization: Smooth coordination within an organization is vital for an efficient supply chain. Clear communication, collaboration, and streamlined processes between different departments and functions ensure seamless flow and timely execution of activities. This includes effective information sharing, coordinated decision-making, and optimized resource allocation.
3. : Connecting the internal organization to the supply chain network is crucial. This integration allows for better visibility, information sharing, and synchronization of activities throughout the supply chain. By linking different entities, such as suppliers, manufacturers, distributors, and retailers, organizations can optimize inventory management, reduce lead times, minimize disruptions, and enhance overall supply chain performance.
In summary, the ability to connect with customers and manage internal organizational links is fundamental for an effective supply chain, enabling organizations to align their processes, respond to customer needs, and optimize overall performance.
Learn more about customers here:
https://brainly.com/question/31192428
#SPJ11
Newton Company produces a single product. The company is considering investing in new technology that would decrease the unit variable cost and double the fixed costs. In addition, the production and sales quantity will also increase under the new technology. What selling price per unit would have to be charged, after the investment in this new technology, to earn the budgeted profit
To determine the selling price per unit that would have to be charged after the investment in the new technology to earn the budgeted profit, we need to consider the impact of the changes on the company's costs and sales quantity.
Let's assume the current selling price per unit is SP, the current unit variable cost is VC, and the current fixed costs are FC. After the investment in new technology, the unit variable cost decreases, so let's assume it becomes VC1, and the fixed costs double, so they become 2FC.
To earn the budgeted profit, the company's total costs need to be covered, including the new fixed costs, and the desired profit. The formula to calculate the selling price per unit is:
Selling price per unit = (Total costs + Desired profit) / Sales quantity
Total costs = (VC1 * Sales quantity) + (2FC)
Desired profit = Budgeted profit
Now, you need to substitute the values of VC1, 2FC, Budgeted profit, and the anticipated increase in sales quantity into the formula to calculate the selling price per unit.
Learn more about budgeted profit
https://brainly.com/question/33132394
#SPJ11
Complete question:
Newton Company produces a single product. The company is considering investing in new technology that would decrease the unit variable cost and double the fixed costs. In addition, the production and sales quantity will also increase under the new technology. What selling price per unit would have to be charged, after the investment in this new technology, to earn the budgeted profit?
Industrial Light and Magic, Inc., is a young start-up company. dividends will be paid on the stock over the next 8 years because the firm needs to plow back its earnings to fuel growth. The company will pay a $5 per share dividend in 9 years and will increase the dividend by 4.20 percent per year thereafter. If the required return on this stock is 18.35 percent, what is the current share price? (Do not round your intermediate calculations.)
18
$8.91
$7.76
$7.99
$8.26
$9.18
The current share price of Industrial Light and Magic, Inc. is approximately $8.91.
To calculate the current share price, we need to find the present value of the future dividends. We can use the dividend discount model (DDM) formula:
P = D / (1 + r)^1 + D / (1 + r)^2 + ... + D / (1 + r)^n
Where:
P = Current share price
D = Dividend payment in each year
r = Required return (discount rate)
n = Number of years
Given:
Dividend payment in year 9 = $5
Dividend growth rate = 4.20%
Required return (discount rate) = 18.35%
Number of years = 8
Let's calculate the present value of dividends:
P = 5 / (1 + 0.1835)^1 + (5 * 1.042) / (1 + 0.1835)^2 + (5 * 1.042^2) / (1 + 0.1835)^3 + ... + (5 * 1.042^7) / (1 + 0.1835)^8
Calculating the above expression, we find:
P ≈ 8.91
To know more about current share price , visit;
https://brainly.com/question/28539863
#SPJ11
1.Write two examples of incentives that might be introduced to
influence companies such as car makers and gasoline producers to
address the air pollution problems associated with cars.
Incentives can be introduced to influence car makers and gasoline producers to address the air pollution problems associated with cars. Two examples of such incentives include imposing a tax on car manufacturers who produce cars that emit high levels of pollution and offering tax breaks and subsidies to companies that invest in green technologies that reduce pollution.
To address air pollution problems associated with cars, companies such as car makers and gasoline producers need to be encouraged to take actions that would promote environmental sustainability. This can be achieved through incentives that are designed to promote green technologies and discourage the production of pollution-emitting vehicles. One example of an incentive that can be introduced is the imposition of a tax on car manufacturers who produce cars that emit high levels of pollution. This would discourage them from producing such cars and encourage them to invest in green technologies that reduce pollution. Another example of an incentive is the offer of tax breaks and subsidies to companies that invest in green technologies that reduce pollution. This would encourage companies to develop new technologies that would help reduce the environmental impact of cars.
Learn more about green technologies: https://brainly.com/question/32032646
#SPJ11
Annie O’Donnell, an architect, acquired a house in Tarragindi under a contract dated 1 January 2015 for $520,000. She also paid $15,000 in legal fees and stamp duty upon settlement of the property on 31 January 2015. Annie initially used the house as her main residence.
Three months later on 1 April 2015, Annie decides to use one room of the house as an office and studio for her new architect business. Annie has recently set up this business and her home address is listed as the registered business address.
The room which was converted into an office and studio represented 20% of the total floor area of the house and her home based business was opened on 1 April 2015.
The market value of her property as at 1 April 2015 had risen to $570,000 as per a written market appraisal acquired from her local real estate agent.
Six years later, on 31 March 2021, Annie closed her architecture business but she continued to use the room as a home study area.
Annie then sold the home at Tarragindi under a contract of sale dated 31 March 2022 for $800,000 and was charged $20,000 in sales commission by the real estate agent.
Annie O'Donnell sold her property in Tarragindi for $800,000 after using a room as a home-based office/studio for her architecture business.
Annie O'Donnell, an architect, purchased a house in Tarragindi on 1 January 2015 for $520,000. She incurred additional expenses of $15,000 in legal fees and stamp duty upon settlement on 31 January 2015. Initially, Annie used the entire house as her main residence.
However, on 1 April 2015, Annie decided to convert one room of the house into an office and studio for her new architect business. This room accounted for 20% of the total floor area of the house, and she officially opened her home-based business on that day. At this time, the market value of the property had increased to $570,000 based on a written market appraisal obtained from her local real estate agent.
For the next six years, Annie continued to operate her architecture business until she closed it on 31 March 2021. However, she continued to use the converted room as a home study area.
Finally, on 31 March 2022, Annie sold the property for $800,000 under a contract of sale. As part of the sale, she was charged $20,000 in sales commission by the real estate agent.
From a tax perspective, Annie needs to consider the capital gains tax (CGT) implications of the property sale. The main residence exemption may apply to the portion of the property used as her dwelling. As Annie lived in the house from the date of purchase until 1 April 2015, a period of approximately three months, she may be eligible for the main residence exemption for this period.
However, from 1 April 2015 onwards, when Annie converted one room into her business office and studio, this portion of the property may be subject to CGT. The increase in value from the date of conversion until the sale date will be assessable as a capital gain.
Annie may need to engage the services of a tax professional to calculate the CGT payable based on the specific circumstances of the property, including the proportion of floor area used for business purposes and the length of time the property was used for residential and business purposes.
In summary, Annie O'Donnell purchased a house in Tarragindi and initially used it as her main residence. She later converted a room into an office and studio for her architecture business. Upon selling the property, she may be subject to CGT on the portion used for business purposes. Seeking professional tax advice is recommended to accurately determine the tax implications of the sale.
To learn more about architecture business refer here:
https://brainly.com/question/32781472
#SPJ11
16
What should be the price for a common stock paying $2.00 annually in dividends if the growth rate is zero and the discount rate is 6%? a. $33.33 b. $38.11 C. $42.00 d. $48.75
The price for a common stock paying $2.00 annually in dividends, with a growth rate of zero and a discount rate of 6%, would be $33.33.
In order to determine the price of a stock, we can use the Gordon Growth Model (also known as the dividend discount model). This model calculates the intrinsic value of a stock based on its expected dividends and the required rate of return.
When the growth rate is zero, it means that the dividends will remain constant over time. Therefore, the formula for the price of the stock can be simplified as follows:
Price = Dividends / Discount Rate
Plugging in the given values, we have:
Price = $2.00 / 0.06 = $33.33
Therefore, the correct answer is option a. $33.33.
To learn more about Gordon Growth Model, click on:
brainly.com/question/30355598
#SPJ11
Holz Disc Golf Course was opened on March 1 by Ian Holz. The following selected
events and transactions occurred during March:
Mar.
1 Invested $20,000 cash in the business.
3 Purchased Rainbow Golf Land for $15,000 cash. The price consists of Land $12,000. shed $2,000, and equipment for $1,000. (Make one compound entry)
5 Paid advertising expenses of $900.
6 Paid cash $600 for a one-year insurance policy.
10 Purchased golf discs and other equipment for $1,050 from stevenson Company payable in 30 days.
18 Received $1,100 in cash for golf fees (Holz records golf fees as service
revenue.)
19 Sold 150 coupon books for $10 each. Each book contains 4 coupons that enable the holder to play one round of disc golf.
25 Withdrew $800 cash for personal use. 30 Paid salaries of $250.
Paid Stevenson Company in full.
31 Received $2,700 cash for golf fees.
Holz Disc Golf uses the following accounts: Cash, Prepaid Insurance, Land, Buildings, Equipment, Accounts Payable, Unearned Service Revenue, Owner's Capital, Owner's Withdrawals, Service Revenue, Advertising Expense, and Salaries Expense.
Required:
Journalize the March transaction. Explanations/Narratives are not required for
journal entries.
These journal entries accurately record the transactions that occurred in March for Holz Disc Golf Course. They reflect the increases and decreases in various accounts, such as cash, owner's capital, expenses, revenues, and liabilities.
Here are the journal entries for the transactions that occurred in March:
Mar. 1:
Cash 20,000
Owner's Capital 20,000
Mar. 3:
Land 12,000
Shed 2,000
Equipment 1,000
Cash 15,000
Mar. 5:
Advertising Expense 900
Cash 900
Mar. 6:
Prepaid Insurance 600
Cash 600
Mar. 10:
Equipment 1,050
Accounts Payable 1,050
Mar. 18:
Cash 1,100
Service Revenue 1,100
Mar. 19:
Cash 1,500
Unearned Service Revenue 1,500 ([$10 x 150] x 4)
Mar. 25:
Owner's Withdrawals 800
Cash 800
Mar. 30:
Salaries Expense 250
Cash 250
Mar. 30:
Accounts Payable 1,050
Cash 1,050
Mar. 31:
Cash 2,700
Service Revenue 2,700
The journal entries are recorded based on the given transactions. Each entry represents the accounts affected by the transaction and the corresponding amounts.
To read more about transactions, visit:
https://brainly.com/question/1016861
#SPJ11
How many dials of construction management are there and what two should a client or owner focus on?
Main dial in construction management: cost and schedule. The client should focus on cost control and effective planning for a successful project.
There are several important issues in construction management, but the two main areas that a client or owner should focus on are cost and schedule management. Cost management involves closely tracking and controlling the costs of a project to ensure that it stays within budget.
Schedule management involves effectively planning and coordinating various construction activities to meet project timelines and deadlines. By prioritizing these two aspects, the client can ensure the financial health of the project and its on-time completion, both critical to successful construction management.
Learn more about construction:
https://brainly.com/question/30051361
#SPJ4
Pet Emporium (PE) at Lawrence is a local franchise of Aquatic America (AA), which sells fresh water aquariums on a national basis. AA offers PE choice of three different varieties of aquariums. PE has to order its assortment of aquariums from AA well in advance of the upcoming selling season. Aquariums are custom built and hence once the orders are placed, they cannot be modified during the selling season. Demand for each type of aquarium is normally distributed with mean 400 and a standard deviation of 100. Further, you may assume that demands for each aquarium is independent of the others. PE buys these aquariums from AA at a whole sale price of $100 per aquarium and plans to sell them at a retail price of $150 per aquarium. AA delivers the orders placed by PE in truckloads at a transportation cost of $2,000 per truckload. The transportation cost is borne by AA and other costs like unpacking and handling are negligible. Assume all orders that are placed by PE will fit into one truckload. AA does not take back any unsold stock of aquariums. However, PE can sell any unsold inventory at a discounted price of $75 per aquarium at the end of the season.For parts d through f, assume PE orders 500 of each type of aquariums:a. What is PE’s expected profit?
b. What is PE’s expected fill rate for each type of aquarium?
c. What is in stock probability for each type of aquarium?
d. Now suppose that AA announces that the unit of truckload capacity is 1200 units of aquariums. If AA orders more than 1200 units (anything between 1201 to 2400 units), it will have to pay for two truckloads. What is AA’s optimal order quantity for each truckload?
The required answer is the -
a. $73,000
b. 0.8 or 80%
c.0.5 or 50%.
d. 1200 units.
a. To calculate PE's expected profit, to consider the revenue from sales and the cost of transportation.
Revenue from sales:
PE plans to sell each aquarium at a retail price of $150, so the revenue per aquarium is $150.
Since PE orders 500 of each type of aquarium, the total revenue from sales for each type of aquarium is 500 * $150 = $75,000.
Cost of transportation:
The transportation cost per truckload is $2,000.
Expected profit:
To calculate the expected profit, we need to subtract the transportation cost from the revenue from sales:
Expected profit = Revenue from sales - Cost of transportation
Expected profit = $75,000 - $2,000 = $73,000
b. The fill rate is the proportion of demand that PE is able to fulfill with the available inventory. Since PE orders 500 of each type of aquarium and demand for each type is normally distributed with a mean of 400, the fill rate for each type of aquarium can be calculated as:
Fill rate = Minimum (500, Demand mean) / 500
For each type of aquarium, the fill rate is:
Fill rate = Minimum (500, 400) / 500 = 400 / 500 = 0.8 or 80%
c. The in-stock probability is the probability that PE will have enough inventory to meet the demand for each type of aquarium. Since demand for each type of aquarium is normally distributed with a mean of 400 and a standard deviation of 100, calculate the in-stock probability using the Z-score.
The Z-score is calculated as:
Z = (Demand mean - Order quantity) / Standard deviation
For each type of aquarium, the in-stock probability can be calculated as:
In-stock probability = 1 - Probability (Z < 0)
Using a Z-table or calculator, we can find the probability that Z is less than 0. The in-stock probability for each type of aquarium is approximately 0.5 or 50%.
d. If the unit of truckload capacity is 1200 units, AA will have to pay for two truckloads if the order quantity is between 1201 to 2400 units.
To find AA's optimal order quantity for each truckload, we need to maximize AA's profit by minimizing the number of truckloads. Since AA does not take back any unsold stock, the optimal order quantity for each truckload will be the maximum order quantity that does not exceed the truckload capacity.
For a single truckload, the order quantity should be less than or equal to 1200 units.
Therefore, AA's optimal order quantity for each truckload is 1200 units.
To know about Expected profit . To click the link.
https://brainly.com/question/29603111.
#SPJ11
9. Find the interest rates earned on each of the following. Round your answers to the nearest whole number. You borrow $680 and promise to pay back $714 at the end of 1 year.
%
You lend $680, and the borrower promises to pay you $714 at the end of 1 year.
%
You borrow $77,000 and promise to pay back $128,211 at the end of 13 years.
%
You borrow $14,000 and promise to make payments of $3,693.20 at the end of each year for 5 years.
%
The interest rates earned in each scenario are approximately 5%, 5%, 66%, 32%. To calculate the interest rates earned in each scenario, we can use the formula: Interest Rate (%) = [(Future Value - Present Value) / Present Value] * 100
Borrowing $680 and promising to pay back $714 at the end of 1 year:
Interest Rate = [($714 - $680) / $680] * 100
Interest Rate ≈ [($34 / $680) * 100]
Interest Rate ≈ (0.05 * 100)
Interest Rate ≈ 5%
Lending $680 and the borrower promising to pay back $714 at the end of 1 year:
Interest Rate = [($714 - $680) / $680] * 100
Interest Rate ≈ [($34 / $680) * 100]
Interest Rate ≈ (0.05 * 100)
Interest Rate ≈ 5%
Borrowing $77,000 and promising to pay back $128,211 at the end of 13 years: Interest Rate = [($128,211 - $77,000) / $77,000] * 100
Interest Rate ≈ [($51,211 / $77,000) * 100]
Interest Rate ≈ (0.6645 * 100)
Interest Rate ≈ 66%
Borrowing $14,000 and making payments of $3,693.20 at the end of each year for 5 years:
First, we need to calculate the total payments made over 5 years:
Total Payments = $3,693.20 * 5
Total Payments = $18,466
Interest Rate = [(Total Payments - Loan Amount) / Loan Amount] * 100
Interest Rate = [($18,466 - $14,000) / $14,000] * 100
Interest Rate ≈ [($4,466 / $14,000) * 100]
Interest Rate ≈ (0.319 * 100)
Interest Rate ≈ 32%
Therefore, the interest rates earned in each scenario are approximately: 5%, 5%,66%, 32%
To know more about Present Value visit-
brainly.com/question/29586738
#SPJ11
You figure that the total cost of college will be $101,000 per year 18 years from today. If your discount rate is 4% compounded annually, what is the present value of four years of college starting 18 years ago from today?
Total cost of college will be $101,000 per year 18 years from today.Discount rate is 4% compounded annuallyWe need to find the present value of four years of college starting 18 years ago from today.The present value of four years of college starting 18 years ago from today is $48,767.29.
We have to find out how much it will cost for four years of college at $101,000 per year 18 years from today.Using the formula;FV = PV (1+r)^(n). FV = Future Value = $101,000r = Discount Rate = 4%n = number of years = 18-4 = 14 years (because we have to find the value for four years of college starting 18 years ago from today)So,101000 = PV (1+0.04)^(14)PV = 101000/(1+0.04)^(14)PV = $48,767.29Therefore, the present value of four years of college starting 18 years ago from today is $48,767.29.
To know more about Discount rate visit:
https://brainly.com/question/32567794
#SPJ11
a. Assume that the company currently has $300 milion of net PPSE. b. The company currently has $100 million of net working capital. c. The company has operating margins of 10 percent and has an effective tax rate of 28 percent. 4. The company has a weighted average cost of capital of 9 percent. This is based on a capital structure of two-thirds equity and one-third debt. e. The firm has 2 million shares outstanding. Do not round intermediate calculations. Round your answer to the nearest cent.
The equity value per share would be approximately $234.47.
Based on the given information, we can calculate the firm's value using the formula:
Value = (Net PPSE + Net Working Capital) / (1 - Operating Margin) * (1 - Tax Rate)
a. Net PPSE = $300 million
b. Net Working Capital = $100 million
c. Operating Margin = 10% = 0.10
d. Tax Rate = 28% = 0.28
Value = ($300 million + $100 million) / (1 - 0.10) * (1 - 0.28)
Value = $400 million / 0.90 * 0.72
Value = $400 million / 0.648
Value = $617.28 million
To find the firm's equity value, we use the formula:
Equity Value = Value - (Debt * (1 - Tax Rate))
d. Weighted Average Cost of Capital (WACC) = 9% = 0.09
e. Shares Outstanding = 2 million
Since the capital structure is two-thirds equity and one-third debt, we can calculate the firm's debt as follows:
Debt = (1/3) * Value
Debt = (1/3) * $617.28 million
Debt = $205.76 million
Equity Value = $617.28 million - ($205.76 million * (1 - 0.28))
Equity Value = $617.28 million - ($205.76 million * 0.72)
Equity Value = $617.28 million - $148.3392 million
Equity Value = $468.9408 million
To find the equity value per share, we divide the equity value by the number of shares outstanding:
Equity Value per Share = Equity Value / Shares Outstanding
Equity Value per Share = $468.9408 million / 2 million
Equity Value per Share = $234.47
Therefore, rounding to the nearest cent, the equity value per share is approximately $234.47.
Learn more about equity from the below link:
https://brainly.com/question/30404824
#SPJ11
Find the present values of the following cash flow streams at a 10% discount rate. Do not round intermediate calculations. Round your answers to the nearest cent. 0 1 2 3 4 5 Stream A $0 $150 $450 $450 $450 $250 Stream B $0 $250 $450 $450 $450 $150
Stream A: $
Stream B: $
What are the PVs of the streams at a 0% discount rate? Round your answers to the nearest dollar.
Stream A: $
Stream B: $
The PVs of the streams at a 0% discount rate are $1,750 for both Stream A and Stream B. Given that the present values of the following cash flow streams at a 10% discount rate, Stream A:0 1 2 3 4 5 $0 $150 $450 $450 $450 $250
Stream B:0 1 2 3 4 5 $0 $250 $450 $450 $450 $150
To find out the PVs of the streams at a 0% discount rate, we need to use the following formula:
PV = FV / (1 + r)n
Where PV = Present Value
FV = Future Value of the cash flow
r = interest rate
n = number of periods
Stream A: For the 0% discount rate, we can calculate as below:
PVA = 0/1 + 0 ^ 0 + 150/1 + 0 ^ 1 + 450/1 + 0 ^ 2 + 450/1 + 0 ^ 3 + 450/1 + 0 ^ 4 + 250/1 + 0 ^ 5
= $1,750
Stream B: For the 0% discount rate, we can calculate as below:
PVB = 0/1 + 0 ^ 0 + 250/1 + 0 ^ 1 + 450/1 + 0 ^ 2 + 450/1 + 0 ^ 3 + 450/1 + 0 ^ 4 + 150/1 + 0 ^ 5
= $1,750
Therefore, the PVs of the streams at a 0% discount rate are $1,750 for both Stream A and Stream B.
To know more about cash flow visit :
https://brainly.com/question/33092771
#SPJ11
Amazon has built new warehouses as it has grown. How does this
change affect various costs and response times in the Amazon supply
chain?
The construction of new warehouses by Amazon reduces transportation costs, improves response times, and enhances inventory management within its supply chain.
Expanding the warehouse network allows Amazon to bring its products closer to customers, resulting in reduced transportation costs and faster delivery times. With more warehouses strategically located, the distance traveled to deliver products decreases, resulting in lower fuel and transportation expenses.
Additionally, having multiple warehouses enables Amazon to distribute its inventory across different locations, reducing the risk of stockouts and improving response times to customer orders.
Moreover, the increased number of warehouses allows Amazon to employ more efficient inventory management practices. By storing products in closer proximity to customers, the company can implement just-in-time inventory systems, minimizing carrying costs and reducing the need for excess inventory storage.
The new warehouses also enhance Amazon's ability to handle returns and process orders more efficiently. With a larger physical footprint, the company can allocate dedicated space for returns processing, streamlining the reverse logistics process and improving customer service.
In summary, the expansion of Amazon's warehouse network positively affects costs and response times in its supply chain by reducing transportation expenses, improving delivery times, optimizing inventory management, and enhancing returns processing capabilities. These changes contribute to overall operational efficiency and customer satisfaction.
Learn more about inventory management here:
https://brainly.com/question/31852040
#SPJ11
tax‐exempt bond was recently issued at an annual 7 percent coupon rate and matures 20 years from today. The par value of the bond is $5,000.
If required market rates are 7 percent, what is the market price of the bond?
If required market rates fall to 3 percent and maturity is 20 years, what is the market price of the bond?
If required market rates rise to 14 percent and maturity is 20 years, what is the market price of the bond?
At what required market rate (7 percent, 3 percent, or 14 percent) does the above bond sell at a discount? At a premium?
The bond sells at a discount when the required market rate is higher than the coupon rate (14 percent), and it sells at a premium when the required market rate is lower than the coupon rate (3 percent).
When the required market rates are equal to the coupon rate of 7 percent, the bond will be priced at its par value since the coupon rate matches the market rate. Therefore, the market price of the bond will be $5,000.
When the required market rates fall to 3 percent, the bond will be priced at a premium because its coupon rate is higher than the market rate. A lower market rate increases the attractiveness of the bond, leading to a higher market price than the par value.
On the other hand, if the required market rates rise to 14 percent, the bond will be priced at a discount. The coupon rate of 7 percent is lower than the market rate, making the bond less attractive to investors. As a result, the market price of the bond will be lower than its par value.
Therefore, the bond sells at a discount when the required market rate is higher than the coupon rate (14 percent), and it sells at a premium when the required market rate is lower than the coupon rate (3 percent).
Learn more about coupon rate here:
https://brainly.com/question/16913107
#SPJ11
Please tell me if the following increases or decreases AD, Glve an explanation for each answer. 1. Investment decreases as interest rates start to rise 2. Consumption of goods increases due to lots of stimulus checks 3. Government purchases decrease because the government has decided to cut back-on military spending.
An increase in consumption of goods and services leads to an increase in AD, while a decrease in investment or government purchases leads to a decrease in AD.
The given situations affect the different components of aggregate demand (AD) differently, leading to either an increase or decrease in AD.
Let's discuss each situation in detail:
Investment decreases as interest rates start to rise When the interest rates increase, the cost of borrowing money increases, which makes borrowing more expensive for businesses. As a result, businesses become less willing to invest in capital goods and projects, which results in a decrease in investment. A decrease in investment causes a decrease in AD, so AD decreases.
Consumption of goods increases due to lots of stimulus checks When people receive more money in the form of stimulus checks, they are more likely to increase their spending on goods and services. An increase in consumption of goods and services results in an increase in AD, so AD increases.
Government purchases decrease because the government has decided to cut back-on military spending.When the government purchases decrease, it means that the government is spending less money on goods and services. Since government spending is a component of AD, a decrease in government purchases results in a decrease in AD, so AD decreases.
To know more about AD visit :
brainly.com/question/32462329
#SPJ11
In the last two decades, one of the central changes in world trade were the rapid growths in exports from newly industrializing economies. With your knowledge of the trade models, discuss how changes in the terms of trade and economic growth will affect the welfare of nations engaged in international trade
Changes in the terms of trade and economic growth have significant implications for the welfare of nations engaged in international trade.
Changes in the terms of trade can affect a nation's welfare by influencing the relative prices of its exports and imports. If a country's terms of trade improve, meaning it receives a higher price for its exports compared to the price it pays for imports, its welfare can increase. This improvement allows the country to obtain more imports for a given level of exports, leading to higher standards of living and increased consumer welfare.
Economic growth plays a crucial role in enhancing a nation's welfare. When a country experiences sustained economic growth, its production possibilities expand, leading to an increase in the availability of goods and services. This can result in higher income levels, improved living standards, and increased welfare for the population. Economic growth can also create employment opportunities, reduce poverty, and stimulate investment and innovation, further contributing to overall welfare.
It's important to note that the impact of changes in terms of trade and economic growth on welfare may vary across countries. Factors such as the size of the economy, the composition of exports and imports, domestic policies, and institutional frameworks can all influence how these changes translate into welfare outcomes.
Learn more about economic growth here:
https://brainly.com/question/29571333
#SPJ11
You bought a call option on euros with a strike price of $1.70/euro. The option premium is 0.02 USD per unit. Which spot price make you break-even if you choose to exercise the option before maturity? (write number only)
You bought a put option on euros with a strike price of $1.70/£. The option premium is 0.02 USD per unit. Which spot price make you break-even if you choose to exercise the option before maturity? (write number only, round up to 2 decimal numbers)
The break-even spot price for the call option is $1.72 per euro. The break-even spot price for the put option is $1.68 per euro.
Call option
The strike price is the price at which the holder of an option can purchase or sell the underlying asset if he chooses to exercise the option. In this case, the strike price of the call option is $1.70 per euro. This means that the holder of the option can buy euros at this price if he chooses to exercise the option. The option premium is the price that the holder of an option pays to the writer of the option for the right to purchase or sell the underlying asset. The option premium for the call option is 0.02 USD per unit. To break even when exercising the option, the holder must make a profit equal to the option premium. To break even, the holder of the call option must exercise it at a price above the strike price by an amount equal to the option premium. Thus, the break-even point can be calculated by adding the strike price and the option premium. $1.70 + $0.02 = $1.72 per euro. Therefore, if the spot price is $1.72 per euro, the holder of the call option will break even if he exercises the option before maturity.
Put option
The strike price is the price at which the holder of an option can purchase or sell the underlying asset if he chooses to exercise the option. In this case, the strike price of the put option is $1.70 per euro. This means that the holder of the option can sell euros at this price if he chooses to exercise the option. The option premium is the price that the holder of an option pays to the writer of the option for the right to purchase or sell the underlying asset. The option premium for the put option is 0.02 USD per unit. To break even when exercising the option, the holder must make a profit equal to the option premium. To break even, the holder of the put option must exercise it at a price below the strike price by an amount equal to the option premium. Thus, the break-even point can be calculated by subtracting the option premium from the strike price. $1.70 - $0.02 = $1.68 per euro. Therefore, if the spot price is $1.68 per euro, the holder of the put option will break even if he exercises the option before maturity.
Learn more about The strike price: https://brainly.com/question/15682316
#SPJ11
Medavoy Company is considering a new project that complements its existing business. The machine required for the project costs $4.75 million. The marketing department predicts that sales related to the project will be $2.63 million per year for the next four years, after which the market will cease to exist. The machine will be depreciated to zero over its 4-year economic life using the straight-line method. Cost of goods sold and operating expenses related to the project are predicted to be 25 percent of sales. The company also needs to add net working capital of $215,000 immediately. The additional net working capital will be recovered in full at the end of the project’s life. The corporate tax rate is 23 percent and the required return for the project is 10 percent. What is the value of the NPV for this project? (Do not round intermediate calculations and enter your answer in dollars, not millions of dollars, rounded to 2 decimal places, e.g., 1,234,567.89.)
By calculating the above steps, you should be able to determine the NPV for this project.
To calculate the Net Present Value (NPV) of the project, we need to calculate the cash flows and then discount them to their present value.
Step 1: Calculate the cash inflows:
Sales per year = $2.63 million
Cash inflows for each year = Sales per year - Cost of goods sold and operating expenses
Cash inflows for year 1 to 4 = ($2.63 million - 0.25 * $2.63 million)
Cash inflows for year 1 to 4 = ($2.63 million - $0.6575 million)
Step 2: Calculate the cash outflows:
Initial machine cost = $4.75 million
Additional net working capital = $215,000
Step 3: Calculate the depreciation expense:
Depreciation expense per year = Machine cost / Project life
Depreciation expense per year = $4.75 million / 4
Step 4: Calculate the tax savings:
Tax savings per year = Depreciation expense per year * Tax rate
Tax savings per year = ($4.75 million / 4) * 0.23
Step 5: Calculate the net cash flows:
Net cash flows for year 1 to 4 = Cash inflows for year 1 to 4 - Tax savings per year
Net cash flows for year 1 to 4 = ($2.63 million - $0.6575 million) - ($4.75 million / 4) * 0.23
Step 6: Calculate the present value of the net cash flows:
Present value factor = 1 / (1 + Required return)^Year
Present value of net cash flows for year 1 to 4 = Net cash flows for year 1 to 4 * Present value factor for each year
Present value of net cash flows for year 1 to 4 = (Net cash flows for year 1 * Present value factor for year 1) + (Net cash flows for year 2 * Present value factor for year 2) + (Net cash flows for year 3 * Present value factor for year 3) + (Net cash flows for year 4 * Present value factor for year 4)
Step 7: Calculate the NPV:
NPV = Present value of net cash flows - Initial investment - Additional net working capital
learn more about Value (NPV) from;
https://brainly.com/question/30404848
#SPJ11
The NPV for this project is approximately $1,035,277.87.
To calculate the Net Present Value (NPV) of the project, we need to find the present value of all cash flows associated with the project and then subtract the initial investment. The cash flows include operating cash flows, the recovery of net working capital, and the salvage value of the machine.
Step 1: Calculate operating cash flows (OCF) for each year.
OCF = (Sales - Cost of Goods Sold - Operating Expenses) * (1 - Tax Rate)
Year 1 OCF:
OCF1 = ($2.63 million - 25% * $2.63 million) * (1 - 0.23)
OCF1 ≈ $2,027,900
Year 2 OCF:
OCF2 = ($2.63 million - 25% * $2.63 million) * (1 - 0.23)
OCF2 ≈ $2,027,900
Year 3 OCF:
OCF3 = ($2.63 million - 25% * $2.63 million) * (1 - 0.23)
OCF3 ≈ $2,027,900
Year 4 OCF:
OCF4 = ($2.63 million - 25% * $2.63 million) * (1 - 0.23)
OCF4 ≈ $2,027,900
Step 2: Calculate the terminal cash flow (salvage value of the machine) at the end of year 4.
Salvage Value = Net Working Capital + After-tax Salvage Value of the Machine
Salvage Value = $215,000 + ($4.75 million - $4.75 million * 0.23)
Salvage Value ≈ $215,000 + $3,662,500 ≈ $3,877,500
Step 3: Calculate the NPV using the formula:
NPV = Σ [OCF / (1 + r)^t] - Initial Investment
Where: r = Required return (discount rate)
t = Time period (year)
NPV = [OCF1 / (1 + 0.10)^1] + [OCF2 / (1 + 0.10)^2] + [OCF3 / (1 + 0.10)^3] + [OCF4 / (1 + 0.10)^4] + [Salvage Value / (1 + 0.10)^4] - Initial Investment
NPV = [$2,027,900 / (1 + 0.10)^1] + [$2,027,900 / (1 + 0.10)^2] + [$2,027,900 / (1 + 0.10)^3] + [$2,027,900 / (1 + 0.10)^4] + [$3,877,500 / (1 + 0.10)^4] - $4.75 million
NPV = [$2,027,900 / 1.10] + [$2,027,900 / (1.10)^2] + [$2,027,900 / (1.10)^3] + [$2,027,900 / (1.10)^4] + [$3,877,500 / (1.10)^4] - $4.75 million
NPV ≈ $1,843,545.45 + $1,676,859.50 + $1,528,974.28 + $1,395,185.32 + $2,639,713.32 - $4.75 million
NPV ≈ $5,785,277.87 - $4.75 million
NPV ≈ $1,035,277.87
The NPV for this project is approximately $1,035,277.87.
Learn more about NPV from the given link:
https://brainly.com/question/30404848
#SPJ11
Three exponential smoothing models with alpha values of 0.1,0.3, and 0.5 resulted mean absolute deviation values of 500,300,700, respectively, which is the best odel? 1) 0.3 2) 0.1 3) 0.5 4) All the three models are equally good
Based on the mean absolute deviation (MAD) values, the best exponential smoothing model among the three options is the one with an alpha value of 0.3.
The mean absolute deviation (MAD) measures the average difference between the predicted values and the actual values in a forecasting model. A lower MAD indicates better accuracy and performance of the model. In this case, the model with an alpha value of 0.3 resulted in a MAD of 300, which is the lowest among the three models. This suggests that the model with an alpha value of 0.3 has the smallest average difference between its predictions and the actual values, indicating higher accuracy compared to the other models. Therefore, based on the provided information, the model with an alpha value of 0.3 is the best choice among the given options.
Learn more about exponential smoothing models here:
https://brainly.com/question/29741804
#SPJ11
During the 1990 s, technological advances greatly reduced the cost of computers. What was the immediate effect on the market for computer software which is its complement? Suggestion: Draw the supply and demand curve chart and then show the shift of the proper curve.A) The supply curve for computer software would shift to the right. B) The supply curve for computer software shifted to the left. C)The demand curve for computer software shifted to the right. D)The demand curve for computer software shifted to the left. The wages of production workers at General Motors Corp go up substantially. What is the immediate effect their automobiles? Suggestion: Draw the supply and demand curve chart and then show the shift of the proper curve. A)Equilibrium price will increase and equilibrium quantity will increase. B)Equilibrium price will decrease and equilibrium quantity will increase. C)Equilibrium price will increase and equilibrium quantity will decrease. D)Equilibrium price will decrease and equilibrium quantity will decrease.
Technological advances reducing the cost of computers would lead to the immediate effect of shifting the demand curve for computer software to the right.
Technological advances that significantly reduce the cost of computers have a direct impact on the market for computer software, which is a complement to computers. A complement is a good that is typically used together with another good, and a decrease in the price of one complement tends to increase the demand for the other.
In this case, as the cost of computers decreases due to technological advancements, more consumers are likely to purchase computers. This increase in computer ownership creates a larger customer base for computer software, as consumers now have the means to utilize software applications on their computers.
The immediate effect on the market for computer software is a shift in the demand curve to the right. This indicates that at any given price, the quantity demanded for computer software increases. As a result, software developers and suppliers can expect higher demand and sales for their products.
The shift in the demand curve for computer software occurs because the reduction in computer prices makes computers more affordable and accessible to a broader range of consumers. This, in turn, leads to an increased desire for software to fully utilize and enhance the capabilities of the newly acquired computers.
Learn more about demand curve
brainly.com/question/13131242
#SPJ11
Hi Friends!
The yield to maturity on one-year zero-coupon bonds is 7.9%. The yield to maturity on two-year zero-coupon bonds is 8.9%.
Required:
a. What is the forward rate of interest for the second year? (Do not round intermediate calculations. Round your answer to 2 decimal places.)
The forward rate of interest for the second year is X.XX%.
To calculate the forward rate of interest for the second year, you need to use the formula:
Forward Rate = (1 + Interest Rate for the Second Year) / (1 + Interest Rate for the First Year) - 1
In this formula, the interest rates for the first and second years are expressed as decimal values. You will need to convert the given interest rate into decimal form before using the formula.
First, convert the given interest rate into decimal form by dividing it by 100. For example, if the given interest rate is 5%, you would divide 5 by 100 to get 0.05.
Next, plug the decimal interest rates into the formula:
Forward Rate = (1 + 0.XX) / (1 + 0.XX) - 1
Simplify the formula:
Forward Rate = 1 / 1 - 1
Finally, calculate the forward rate of interest for the second year by subtracting 1 from the result:
Forward Rate = X.XX%
Know more about rate of interest here:
https://brainly.com/question/15691955
#SPJ11
How does economic packaging support the design for logistics concept? Edit View Insert Format Tools Table Paragraph V 12pt Р ⠀ 1111 O words ****
Economic packaging plays a crucial role in supporting the design for logistics concept. By optimizing packaging materials, size, and configuration, companies can achieve cost savings and improve overall efficiency in their supply chain operations. Effective economic packaging reduces transportation costs, maximizes space utilization, and minimizes material waste. It enables better stacking, handling, and storage of goods, reducing the risk of damage during transit. Moreover, it facilitates streamlined loading and unloading processes, leading to faster turnaround times and improved productivity. The design for logistics concept emphasizes the integration of packaging considerations into the overall logistics strategy, aiming to achieve cost-effective and sustainable operations. Through economic packaging, companies can enhance supply chain performance, reduce environmental impact, and deliver products more efficiently to customers.
To know more about design for logistics concept: https://brainly.com/question/33698501
#SPJ11
A period of time allowed by courts in all states that grants delinquent borrowers the opportunity to make overdue payments before foreclosure proceedings begin is termed:
a. equity right of redemption.
b. statutory redemption.
c. judicial forbearance.
d. foreclosure forbearance.
Based on the analysis above, the correct term for the period of time allowed by courts that grants delinquent borrowers the opportunity to make overdue payments before foreclosure proceedings begin is:
b. Statutory redemption.
To determine the correct term for the period of time allowed by courts that grants delinquent borrowers the opportunity to make overdue payments before foreclosure proceedings begin,
let's go through the options step by step:
a. Equity right of redemption:
The equity right of redemption refers to the legal right of a borrower to reclaim their property after a foreclosure sale by paying off the outstanding debt along with any associated costs within a specified time period.
This option does not match the given description as it involves post-foreclosure proceedings.
b. Statutory redemption:
Statutory redemption is the correct term for the period of time allowed by courts that grants delinquent borrowers the opportunity to make overdue payments before foreclosure proceedings begin.
It is a specific time frame specified by state laws in which the borrower can redeem their property by paying the outstanding debt, interest, and costs even after the foreclosure sale has occurred.
c. Judicial forbearance:
Judicial forbearance is not the term that describes the period of time allowed by courts for delinquent borrowers.
Forbearance generally refers to an agreement between a borrower and a lender to temporarily suspend or reduce loan payments due to financial hardship, but it does not involve the opportunity to make overdue payments before foreclosure proceedings begin.
d. Foreclosure forbearance: Foreclosure forbearance is not the term that describes the period of time allowed by courts for delinquent borrowers.
The term "foreclosure forbearance" is not commonly used, and it does not specifically refer to the opportunity given to delinquent borrowers to make overdue payments before foreclosure proceedings begin.
Based on the analysis above, the correct term for the period of time allowed by courts that grants delinquent borrowers the opportunity to make overdue payments before foreclosure proceedings begin is:
b. Statutory redemption.
Learn more about opportunity in the link:
https://brainly.com/question/29887118
#SPJ11
Rahul purchased a house for $500,000. He made a down payment of 20% of the value of the house and received a mortgage for the rest of the amount at 5.50% compounded semi-annually for 20 years. The interest rate was fixed for a 5-year term. A. What are the monthly payments B. Calculate the principal balance after the 5 year term . Use a spreadsheet if you like C. Calculate the size of the monthly payments if after the first 5 -year term the mortgage was renewed for another 5 -year term at 5.25% compounded semi-annually. ( 3 marks)
A. The monthly payments for Rahul's mortgage are approximately $2,741.81.
B. After the 5-year term, the principal balance remaining on the mortgage is approximately $375,802.87.
C. If the mortgage is renewed for another 5-year term at a rate of 5.25% compounded semi-annually, the size of the monthly payments would be approximately $2,694.80. These calculations are based on a principal amount of $400,000 (after a 20% down payment), an initial interest rate of 5.50% compounded semi-annually, and a total mortgage term of 20 years. The mortgage formula was used to compute these values.
To calculate the monthly payments, principal balance after the 5-year term, and the size of the monthly payments after renewing the mortgage, we need to use the mortgage formula. The formula is as follows:
Monthly Payment = (P * r * (1 + r)^n) / ((1 + r)^n - 1)
Where:
P = Principal amount (loan amount)
r = Monthly interest rate
n = Total number of monthly payments
Let's calculate each part step by step:
A. Monthly Payments:
Principal amount (P) = $500,000 - 20% (down payment) = $400,000
Monthly interest rate (r) = Annual interest rate / 12 months = 5.50% / 12 = 0.0045833
Total number of monthly payments (n) = 20 years * 12 months = 240
Plugging these values into the formula:
Monthly Payment = ($400,000 * 0.0045833 * (1 + 0.0045833)^240) / ((1 + 0.0045833)^240 - 1)
Using a spreadsheet or a calculator, the approximate monthly payment is $2,741.81.
B. Principal Balance after the 5-year term:
We need to calculate the remaining principal balance after 5 years. To do this, we'll find the number of monthly payments made in 5 years:
Number of payments made = 5 years * 12 months = 60
Using the formula with the remaining number of payments:
Principal Balance = ($400,000 * (1 + 0.0045833)^240) - [($400,000 * (1 + 0.0045833)^60) - (monthly payment * ((1 + 0.0045833)^60 - 1)) / 0.0045833]
Using a spreadsheet or a calculator, the approximate principal balance after 5 years is $375,802.87.
C. Size of Monthly Payments after Renewal:
Principal amount (P) for the renewed term = Principal balance after 5 years = $375,802.87
Monthly interest rate (r) = Annual interest rate / 12 months = 5.25% / 12 = 0.004375
Total number of monthly payments (n) = 5 years * 12 months = 60
Using the formula:
Monthly Payment = ($375,802.87 * 0.004375 * (1 + 0.004375)^60) / ((1 + 0.004375)^60 - 1)
Using a spreadsheet or a calculator, the approximate monthly payment for the renewed term is $2,694.80.
Therefore:
A. The monthly payments are approximately $2,741.81.
B. The principal balance after the 5-year term is approximately $375,802.87.
C. The size of the monthly payments after renewal is approximately $2,694.80.
To know more about mortgage, visit:
https://brainly.com/question/4418704
#SPJ11
Recording: Treasury Stock vs. Direct Stock Retirement On December 31, 2020, the records for Lakers Inc. provided the following data on stockholders' equity. The stockholders vote to retire all of the treasury stock immediately and to purchase for direct retirement another 3,200 shares of common stock currently trading at $12.50 per share. Required a. Provide the journal entry for the purchase and immediate retirement of the 3,200 shares of outstanding common stock. Note: List multiple debits (when applicable) in alphabetical order and list multiple credits (when applicable) in alphabetical order. b. Provide the journal entry for the retirement of all of the remaining treasury shares. Note: List multiple debits (when applicable) in alphabetical order and list multiple credits (when applicable) in alphabetical order. c. Assume instead for part (a) that the company holds the 3,200 shares in the treasury rather than retiring immediately. Record the journal entry. Determine the net effect on stockholders' after part a and after part c Note: Indicate a decrease with a negative sign. Cash Equipment Investment in Stock Dividends Payable Property Dividends Payable Preferred Stock Common Stock Common Stock Dividends Distributable Paid-in Capital in Excess of Par-Common Stock Paid-in Capital in Excess of Stated Value-Common Stock Paid-in Capital in Excess of Par-Preferred Stock Paid-in Capital-Retired Stock Paid-in Capital-Treasury Stock Retained Earnings Treasury Stock Legal Expense Unrealized Gain or Loss-Income N/A
The net effect on stockholders' equity after part a would be a decrease in Paid-in Capital-Treasury Stock and an increase in Common Stock and Retained Earnings. After part c, there would be a decrease in Treasury Stock and an increase in Cash.
a. The journal entry for the purchase and immediate retirement of the 3,200 shares of outstanding common stock would be as follows:
Debit: Treasury Stock
Debit: Cash
Credit: Common Stock
Credit: Paid-in Capital-Treasury Stock
b. The journal entry for the retirement of all of the remaining treasury shares would be as follows:
Debit: Paid-in Capital-Treasury Stock
Credit: Treasury Stock
c. If the company holds the 3,200 shares in the treasury instead of retiring immediately, the journal entry would be as follows:
Debit: Treasury Stock
Credit: Cash
to know more about journal entries visit:
https://brainly.com/question/15889958
#SPJ11
Part 1) NewTech Company is a young, vibrant company expected to grow at a rate of 30% over the next two years before settling to a long-run growth rate of 6%. The firm's required rate of return is 9%. If the firm recently paid a dividend of $2, what should be the stock's price?
A) $109.18
B) $105.67
C) $112.43
D) $81.45
The correct stock price based on the given information would be $13.33.
To calculate the stock's price using the Dividend Discount Model (DDM), we can use the formula:
Stock Price = Dividend / (Required Rate of Return - Growth Rate)
Given the following information:
Dividend = $2
Growth rate for the next two years = 30% = 0.30
Long-run growth rate = 6% = 0.06
Required Rate of Return = 9% = 0.09
Substituting these values into the formula:
Stock Price = $2 / (0.09 - 0.30 + 0.06)
Stock Price = $2 / (0.15)
Stock Price = $13.33
Since we are looking for the stock's price, none of the provided answer choices match the calculated value. The correct stock price based on the given information would be $13.33.
To know more about Dividend discount model, visit:
https://brainly.com/question/16794080
#SPJ11
Describe the damage to Nestle’s reputation following the
decision to market infant formula in third-world countries.
Nestle's reputation suffered significantly due to the decision to market value by using infant formula in third-world countries.
The aggressive marketing practices employed by the company in these regions led to negative consequences, including damage to Nestle's reputation as well as health risks for infants.
Nestle faced allegations of unethical marketing and aggressive promotion of infant formula, which undermined breastfeeding practices and had adverse effects on the health of infants in developing countries. The company was accused of creating a false perception that formula feeding was superior to breastfeeding, targeting vulnerable populations with misleading advertising, and providing inadequate education on proper formula preparation and use.
The repercussions were severe, as Nestle faced boycotts, protests, and legal challenges from advocacy groups and concerned individuals. The company's reputation suffered due to the perception that it prioritized profit over the well-being of infants and their families. Nestle's actions drew widespread criticism from the international community, leading to increased scrutiny of its marketing practices and calls for stricter regulations in the infant formula industry.
To know more about market value visit
brainly.com/question/27993050
#SPJ11
Two mutually exclusive projects require the same $800,000 in initial investment. Afterwards, the first project provides the following cash flows over the next four years: $400,000, $250,000, $200,000, and $600,000. The second project provides the following cash flows over the next four years: $600,000, $200,000, $250,000, and $400,000. The target payback period is 3 years. Which project should you undertake? Explain with appropriate calculations.
The target payback period is three years, Project 1's payback period exceeds the target, whereas Project 2's payback period is less than the target, so Project 2 should be undertaken.
The Payback Period Method determines the time it takes to recover the initial investment of a project. Projects with shorter payback periods are preferred over those with longer payback periods. It is essential to consider whether or not a project's payback period falls within a company's acceptable range or is less than the anticipated useful life of the asset to be bought before determining whether or not to take the project. It is not ideal to have a payback period that exceeds the asset's useful life since the asset would not have produced any income during the last years of its useful life if the project's payback period exceeded the useful life of the asset.
Two mutually exclusive projects require the same $800,000 in initial investment. Afterward, the first project provides the following cash flows over the next four years: $400,000, $250,000, $200,000, and $600,000. The second project provides the following cash flows over the next four years: $600,000, $200,000, $250,000, and $400,000. The target payback period is 3 years. Now, we will calculate the payback period of both projects: Project 1:Year 1 = $400,000Year 2 = $250,000Year 3 = $200,000Year 4 = $600,000Total = $1,450,000Payback Period = 2 + ($350,000 / $600,000) = 2.58 years (approximately)Project 2:Year 1 = $600,000Year 2 = $200,000Year 3 = $250,000Year 4 = $400,000Total = $1,450,000Payback Period = 1 + ($200,000 / $250,000) = 1.8 years (approximately). Since the target payback period is three years, Project 1's payback period exceeds the target, whereas Project 2's payback period is less than the target, so Project 2 should be undertaken.
Learn more about Investments-
https://brainly.com/question/29547577
#SPJ11
Undertake a SWOT and PESTLE analysis on McDonal's and use the
results to analyse the main e-commerce related opportunities and challenges it has
faced because of the COVID-19 pandemic and evaluate how successfully it has
addressed these
Examine how the growth in sales and/or customer base has posed supply chain
challenges for McDonal's and the ways in which it has sought to
overcome these challenges in order to provide high levels of service and
fulfilment
Using your research, identify TWO (2) social media channels that McDonal's
uses to help develop its online communities. Explain the reasons why each of these
TWO (2) channels have been selected and the benefits they provide in terms of
achieving enhanced communication and interaction with these
communities.
Identify whether the McDonal's site has an SSL (Secure Sockets
Layer) certificate AND if its payment systems are PCI DSS (Payment Card Industry
Data Security Standard) compliant. Define the key characteristics of both features
and discuss how they can help customers to have confidence in the security of the ecommerce
site.
Using your research, identify and briefly describe TWO (2) features of McDonal's that you believe are particular strengths in terms of meeting the
needs and expectations of the site’s target audience(s), detailing the reasons for
your choice.
SWOT Analysis of McDonald's Strengths is one of the most well-known fast-food chains globally, with a large number of loyal customers. McDonald's has a large range of food items, including vegetarian and vegan options, as well as non-beef burgers.
The organization has a strong brand image and offers high-quality service to its consumers. The brand has also been successful in establishing a loyal fan base by sponsoring major sporting events and concerts. Weaknesses The food quality may be seen as subpar when compared to a sit-down restaurant, resulting in lower quality and lesser pricing. Since McDonald's is a franchise business, the level of control varies greatly between restaurants. Many people would argue that the food is unhealthy and does not provide much nutritional value.
Opportunities McDonald's may expand its product offerings in the future, including healthier food options and eco-friendly packaging. They may also provide better dining environments to increase their consumers' overall experience. Given the current trend in technology, McDonald's could launch an e-commerce service that allows customers to order and pay online. Threats Health concerns such as obesity and heart disease, as well as consumers' growing interest in eating healthily, could lead to lower sales of fast food.
Other fast-food chains may begin to provide a more sustainable and eco-friendly experience for their customers. COVID-19 could have a negative impact on the fast-food industry as a whole. PESTLE Analysis of McDonald's Political is subjected to government regulations and legislation that govern the operation of fast-food establishments. Economic The fast-food sector is often affected by economic fluctuations.
To know more about franchise business visit
https://brainly.com/question/14470433
#SPJ11
In beer game (supply chain),
what is not realistic, looking from distributor perspective ?
From a distributor's perspective, one aspect of the beer game (supply chain simulation) that may not be realistic is the extreme variability and amplification of demand fluctuations.
In the beer game, the demand orders placed by the retailers are often exaggerated and fluctuate greatly, leading to bullwhip effect. The bullwhip effect refers to the phenomenon where small changes in customer demand result in larger and more erratic fluctuations in demand orders as they move up the supply chain.
In reality, while demand fluctuations do occur, they are typically not as extreme and unpredictable as portrayed in the beer game. In a real supply chain, demand patterns are usually smoother and more stable, allowing distributors to forecast and plan their inventory levels more effectively. The exaggerated demand fluctuations in the beer game may not accurately reflect the typical dynamics and challenges faced by distributors in real-world supply chains.
Additionally, the beer game simplifies the supply chain by only considering one product and a single layer of distributors. In reality, supply chains can be much more complex, involving multiple products, various layers of distributors, suppliers, and retailers, each with their own unique challenges and dynamics. The beer game's simplified representation may not fully capture the intricacies and complexities of a real-world distributor's perspective in managing a complex supply chain.
It's worth noting that the beer game is primarily designed as a learning tool to illustrate the challenges of supply chain coordination and the bullwhip effect, rather than providing a precise representation of real-world dynamics.
More on bullwhip effect: https://brainly.com/question/31168203
#SPJ11
