SECTION III: INVESTMENT DECISONS

A cloth manufacturing firm is deciding whether or not to invest in new machinery. The machinery costs $45,000 and is expected to increase cash flows in the first year by $25,000 and in the second year by $30,000. The firm’s current fixed costs are $9,000 and current marginal cost are $15. The firm currently charges $18 per unit.

a. If the cost of capital is 5% what is the net present value (NPV) of the investment in the new machinery?


b. If the interest rate (cost of capital) is 5%, should the firm undertake the investment? Why?

Answers

Answer 1

Explanation:

what is a right triangle


Related Questions

A place to Store crypto. Can be online or offline. What is the definition?

Answers

A cryptocurrency can be stored both online and offline based on the choice of an individual but offline is considered safest.

How to store Crypto online?

Crypto can be stored online with the help of a software wallet which includes internet add-ons, desktop, mobile, or web applications. They could differ in terms of their designs and purposes.

One can store your cryptocurrency wallet offline as a cold wallet when you don't want to exchange your cryptocurrency, hardware wallets may be the best option to avoid hacking.

When a cryptocurrency wallet is online, it is referred to as a hot wallet, when it is not, it is referred to as a cold wallet.

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Discuss some design consideration that you should keep in mind when you want to design a professional looking flyer or newsletter include considerations like colums, text alignments, graphics, etc.

Answers

Borders help flyers and newsletters stand out. Colors, Italics, and ALL CAPS may highlight text. Always utilize font-weight to separate text parts. Font size choices include ordinary, bold, and light.

This is further explained below.

What are designers supposed to keep in mind when designing?

Generally, A designer should balance text and images and give each piece breathing space. When followed, the flyer template creates balance and peace.

Borders help flyers and newsletters stand out. Colors, Italics, and ALL CAPS may highlight text.

Always utilize font-weight to separate text parts. Font size choices include ordinary, bold, and light.

In conclusion, Text should be aligned using a grid system with intersecting vertical and horizontal lines dependent on the document's size. Centering text creates symmetry.

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What is the price of a bond with a par value of $1,000,
11 years to maturity and a 7% coupon rate with semi-
annual coupon payments if the bond has a yield to
maturity of 4%?

Answers

Bonds are priced at $1,264.87.

Is six months a semi-annual?

Something that is paid, reported, published, or otherwise occurs twice a year, often once every six months, is referred to as semiannual.

How is the annual coupon payment determined?

Simply multiply the bond's face value by its annual coupon rate to determine the annual coupon payment for the bond. In other words, if your bond has a $1000 face value and a 10% yearly coupon rate, the annual coupon payment you would get will be $100.

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Example of the Single Decision-Maker Process

Answers

In your day-to-day existence, you are presented with a variety of decision-making opportunities, such as choosing what to dress. Making a decision over what to have during lunch. choose one of the books to read next.

This is further explained below.

What is decision-making?

Generally, The process of individual decision-making within the framework of a human organization is a complicated one.

It incorporates individual reasoning about one's own wants, capacities, and experiences, as well as reasoning about the surrounding formal structure and (informal) social structure and processes.

In conclusion, You are faced with a wide range of decision-making chances on a day-to-day basis, such as deciding what to wear, for example. Making a selection of what to eat for lunch at the moment. Pick another one of these novels to read after this one.

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John expects to get a raise equal to the increase in the CPI. The CPI has gone from 160 to 164. If John’s salary last year was $50,000, what salary does he expect to earn this year?

Answers

If the CPI increases from 160 to 164 and John expects a raise equal to the rise in the CPI, John's salary this year should be $51,250.

What is the CPI?

The CPI means the Consumer Price Index.  It is an inflation measure that considers average consumer goods and services prices.

The CPI is used to measure inflation in the United States.

For instance, if John's salary last year was $50,000 and the CPI then was 160, now that the CPI has increased to 164, naturally, John's salary should not remain at $50,000.  Otherwise, he would be earning less in real terms.

Instead, John's salary should increase to $51,250 to reflect the increase in consumer prices.

Detailed Calculations:

CPI last year = 160

CpI this year = 164

John's salary the previous year was $50,000

John's salary this year should be $51,250 ($50,000 x 164/160)

Thus, with the increased CPI, John's salary should be $51,250 this year.

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This is for Personal Finance:

Can someone help me?

I have attached the document below.

This needs to be done before the 28th.


Creating a New Budget to Meet Your Saving and Spending Needs project


I need help filling out the chart.

I need help answering the questions also.


2. Which budgetary category changed the most between your old budget and your new budget?

Why? (5 points)

3. How does your new budget help you to meet your short-term goal of buying a new laptop? (5

points)

4. How does your new budget help you to meet your long-term goal of saving for college? (5 points)

Answers

In any endeavors, the act of budgeting assists you in achieving your academic and financial objectives.

What is a budget?

It refers to the estimation of revenue and expenses over a specified future period of time which is usually re-evaluated on a periodic basis. Apart from the fact that budget will also assist you in anticipating unforeseen costs and challenges, it also necessitates difficult decision-making but creating goals will make the process easier.

Which budgetary category changed the most between your old budget and your new budget?

In this budget, the net savings changed the most, and this is because of the extra money coming in via total income. Also, an extra $290 was added to the category.

How does your new budget help you to meet your short-term goal of buying a new laptop?

The act of savings and making deposits can be a part of a short term goal by making a budget for being able to purchase a new laptop.

How does your new budget help you to meet your long-term goal of saving for college

When we make sure that savings are enough for college in the time you want in the budget, then, the new budget help you to meet your long-term goal of saving for college.

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Answer:

The Budget Sheet is completed with directions.

Explanation: I entered all the information provided by the exercise and added the sums and followed the instructions step by step.

What is your BIG idea for a new Sharpie product, service, shopping aisle reinvention, physical location, and beyond?

Answers

The key to creating a new Sharpie product, service, shopping aisle, physical location, and value offer is to define the market.

The "market mix" that can be utilized to promote new items in order to connect with potential customers and increase sales can be thought of as the product strategy.

The first thing to keep in mind is that a product strategy has the following components: an issue, a diagnostic, a guiding policy, an action plan, and short-term goals. Also keep in mind that a winning strategy will make use of our advantages to counteract those of the opposition, such as by creating asymmetric costs.

It harmonizes the business's goals and objectives. Ensuring that the business is investing its time in the proper areas. It informs the delivery crew of the structure you are creating.

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three types of investments that you would select for an investment portfolio and explain why you believe they would be beneficial for your financial future.

Answers

The three types of investments that you would select for an investment portfolio are:

OwnershipLendingCash equivalents.

The reason why they would be beneficial to my financial future is because i will get a lot of profit by investing in them.

What is the Ownership Investments?

This is known to be the Equity Investments and it is an Investments in ownership are the riskiest and most lucrative category. An example is investment in Stocks.

Note that Owning stock entails owning a stake in a business and therefore, The three types of investments that you would select for an investment portfolio are:

OwnershipLendingCash equivalents.

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Company A had $210,000 income from operations. Salaries expense for the year was $12,500. Depreciation expense was $9,000. Cost of goods sold was $112,000. They also received dividend revenue of $20,200. What is the company's sales revenue for the year?
Group of answer choices

$322,000

$343,500

$323,300

$96,700

Answers

The company's sales revenue for the year is $343,500 (2nd option).

What is the sales revenue?

Operating income is the income that is derived from the company in the course of running its normal business activities. In order to derive the operating income, operating expenses such as wages is deducted from the sales revenue. Depreciation and cost of goods sold is also subtracted from sales revenue.

If the operating income is given, in order to determine the sales revenue, add salaries, depreciation and cost of goods sold to income from operations. Dividend revenue is not included in the calculation because it not part of the income derived in the course of the company's activities.

Sales revenue = income from operations + depreciation + cost of goods sold + salary expense

$210,000 + $12,500 + $9,000 + $112,000 = $343,500

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All of the following are advantages for organizing a business as a sole proprietorship except
O a sole proprietorship is a simple form of business to set up.
O a sole proprietorship receives more favorable tax treatment.
O a sole proprietorship gives the owner control of the business.
O a sole proprietorship allows for an easy transfer of ownership through stock sales.

Answers

Advantages for organizing a business as a sole proprietorship except  a sole proprietorship allows for an easy transfer of ownership through stock sales.

What is the main disadvantage of a sole proprietorship?

Lack of liability protection is the sole proprietorship's biggest drawback. Since there is no concept of a legal entity in business, every liability is a personal liability. Therefore, the owners are exclusively responsible for the business even though they have the ability to oversee and make decisions on their own.

What are the advantage of sole proprietorship?

Starting costs are minimal. You enjoy the utmost solitude. Your company may be established and run easily. If circumstances change, it's simple to change your legal structure afterwards. It's also simple to close down your firm.

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how do you build and maintain a positive credit history that leads to a high credit score? What changes could you make to improve yours

Answers

here are some tips ,
1)pay your bills on time
2) stay below ur credit limit
3) maintain credit history with older credit cards
4) apply for new credit only when needed
5) check ur credit reports for errors

When a new strain of the flu spreads across the country, Joshua, the owner of a small drugstore, decides to stock extra inventory of cold and flu medications. Lacking sufficient capital to purchase the extra inventory, Joshua asked the bank to help. The bank promised to lend a predetermined sum of money on demand. Which of the following sources of funding does this scenario best illustrate?

Answers

If  Joshua asked the bank to help. The bank promised to lend a predetermined sum of money on demand. The sources of funding this scenario best illustrate is: venture capital.


What is venture capital?

Venture capital can be defined as the process in which a financial institution tend to give out loans to small business owners  that have potentials of making it big so as to enables the business to succeed or to grow higher.

Based on the scenario the funding tend to represent venture capital because Joshua is a small business owner that lack sufficient capital.

Therefore If the bank promised to lend a predetermined sum of money on demand. The sources of funding this scenario best illustrate is: venture capital.

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The complete question is:

When a new strain of the flu spreads across the country, Joshua, the owner of a small drugstore, decides to stock extra inventory of cold and flu medications. Lacking sufficient capital to purchase the extra inventory, Joshua asked the bank to help. The bank promised to lend a predetermined sum of money on demand. Which of the following sources of funding does this scenario best illustrate?

trade credit

initial public offering

venture capital

equity financing

line of credit

SECTION IV: BREAK-EVEN ANALYSIS

A firm’s fixed costs are $10 million. It sets the price at $1800 per unit and has marginal costs of $1,000.

a.What is the firm’s contribution margin?


b.What is the break-even quantity of this firm?

Answers

The contribution margin of the firm is $800.

The breakeven quantity is 12,500.

What is the breakeven point?

The contribution margin is the difference between the firm's price per unit and its marginal cost. The marginal cost of a firm is the cost that changes with the unit of output. For example, wages paid to labor increases with the amount of labor employed. Marginal cost is also known as variable cost.

Contribution margin = price per unit - marginal cost

$1800 - $1000 = $800

The breakeven quantity are the number of  units produced and sold at which net income is zero. At the breakeven quantity, neither profit or loss is earned.

The breakeven quantity is the ratio of fixed cost and the contribution margin. Fixed cost is the cost that remains constant regardless the level of output. For example, the rent paid for an office does not depend on the level of sales of the company.

Breakeven quantity = fixed cost / contribution margin

Breakeven quantity = $10 million / $800 = $12,500

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This type of business allows unlimited owners. It does NOT allow shareholders. Owners are NOT personally responsible for business liabilities

Question options:

C-Corporation
S-Corporation
Limited Liability Company
Sole Proprietorship

Answers

Answer:

I think its LLC not sure

Explanation:

Uhhh i tried?

what is unnecessary meeting?

Answers

Unnecessary meetings are those that are held when they are not actually necessary to do so and when they are necessary but do not include you.

One of the most terrible practices in the modern workplace is the Unnecessary meeting. Many managers and supervisors make it a point to schedule as many meetings as they can to get the team together and discuss common problems because a large portion of our office culture is based on communication and collaboration. The bulk of meetings are held for their own purposes and taking part in them is a waste of time, however some are really beneficial and vitally required. Meetings that don't actually need to be held and those that do but don't necessitate your involvement both fall into the category of being unnecessary meeting. With the appropriate approach, both types of encounters may be avoided, saving you valuable time and allowing you to concentrate.

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Theo Chocolate is considering opening a cooking school which will teach students techniques for working with chocolate and recipes that feature Theo chocolate as an ingredient. This would be an example of:
A.Differentiation
B.Vertical integration
C.Unrelated diversification
D.Related diversification
D.Bargaining power of suppliers

Answers

This theo chocolate would be an example of: vertical integration.

Theo Chocolate

Theo Chocolate is a chocolate manufacturer based in Seattle, Washington. It is the first organic fair trade-certified cocoa producer in the United States, having been established in 2006. Theo has sourced beans from the Democratic Republic of the Congo, Costa Rica, the Dominican Republic, Ecuador, Madagascar, Peru, and Venezuela. Jeff Fairhall and Joe Whinney founded the company in Seattle's Fremont district in 2006. 3400 Phinney Avenue is the address of the historic Fremont Trolley Barn. Whinney volunteered with a tiny conservation foundation in Southern Belize when he was in his early twenties, looking into how locals grew their crops.

The process of Vertical integration comprises the utilisation of a supply chain to make diverse activities and services within different levels.

Therefore,the correct answer is option B

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9. A general increase in the price of goods and services is called
c.
deflation.
D. recession.
a. upsurge.
b. inflation.

Answers

Answer:

b. inflation.

hope it helps....

What two things should be included when summarizing? Choose 2 answers.

Question 1 options:

Numbers


Main purpose


Key points


Names

Answers

Explanation:

Main purpose

Key events

What should be considered before speaking, so there is not a context error in the communication. Choose three answers.

Question 2 options:

Location


Gender


Environment


Time

Answers

Gender, Location, and Time are the phenomenon that should be considered before speaking, so there is not a context error in the communication. Therefore, the options A, B and D hold true.

What is the significance of communication?

Communication can be referred to or considered as the process of formation of an interaction between two or more people. A communication is surrounded by a number of aspects such as gender(s) involved in interaction, the time, and location at which it takes place.

Therefore, the options A, B and D hold true and state regarding the significance of communication.

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Answer:

location,  gender, and time

Explanation:

i took the test

Students should think of a product or service idea that they think would sell. It can even be a hobby in which they are interested in (i.e. clothes, shoes, jewelry, make-up).
They are to narrow down the market to a niche market (i.e. teens, children, boys, girls, Adults), then create one offline marketing document (a flyer) using Microsoft Publisher or Microsoft Word, to promote their product/products.
Research to see what these types of ads can look like if you are unfamiliar with them.

Answers

Selling clothes will be a good idea and would provide better returns/ profits to the seller.

What is clothes Business?

Clothes business is a business that sells clothes, the customers wear clothes and so describes their personality before they even speak, the customer therefore have different tastes to purchase the type of clothes that suits them, the color, the design and the soft wearable and comfortable material.

A flyer can easily be made on Microsoft Word, take a blank page to start add the title of the business name, then add the details about the nature of clothes that is shirts, t-shirts, jeans, pants and more. Then in the next line add the description of which market is targeted that is the potential customer that is the teenagers. In the end the address of the shop is to be added. A low price tag or starting from only $x can be used to attract more customers.

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Consider a business in your community—how might this business help address or solve a social problem? Explain

Answers

Let's assume that the company operates in the agribusiness area, a social program that it could develop to solve a social problem would be a contract with small local producers.

This social program could actively assist local development, training rural workers and fostering the local economy.

What is Corporate Social Responsibility (CSR)?

Corresponds to organizational practices and programs that demonstrate the company's responsibility towards society and the environment, helping to solve social problems through spontaneous actions that exceed the socio-environmental requirements provided for by law.

Therefore, CSR helps companies to create value for stakeholders through practices that contribute to local development.

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Should imports to the United States be curtailed by, say
20 percent to eliminate our trade deficit? What might
happen if this were done?

Answers

If the nation should have to reduce their imports by 20 percent in order to curtail trade deficits it would have an effect on the nations that depend on the imports they get from the United States into their own countries.

What is trade deficit?

This is the term that is used to refer to the amount by which the value exports that are done by a nation would be less  than its cost of imports.

This means that the nations would have to trade with other nations that are going to buy the goods that they have. They may have to start to depend on borrowing from other nations.

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Ethics values one person or group more than another.
a. True
b. False

Answers

Ethics values one person or group more than another.

The statement is true.

Ethics values are primarily based on motive instead of emotion. Ethics values one individual or institution extra than every other. Impartiality forces a person to balance self-interest with the hobbies of others. Commercial enterprise ethics are the ethical ideas utilized in making commercial enterprise selections.

Rule-primarily based Ethics values - in this style of reasoning, acts are both right or incorrect. As instance, telling the truth is always proper, and lying is usually wrong. In rule-primarily based ethics, suitable outcomes do no longer justify incorrect or terrible acts.

The gadget of moral and ethical ideals that courses the values, behaviors, and choices of a commercial enterprise organization and the individuals inside that company is referred to as commercial enterprise ethics. A few moral requirements for corporations are codified into law.

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Which of the following companies is most likely to use process costing?

Answers

Answer:greenwich company

Explanation:

Which of the following is required to be considered an​ entrepreneur?

Answers

Acting on your own decisions,

Making your own hours,

Doing work you enjoy are required to be considered an​ entrepreneur.

An entrepreneur is a person who starts a new business, taking on the most of the risks and reaping the majority of the gains. The term "entrepreneurship" refers to the act of starting a business. The entrepreneur is frequently viewed as an innovator, a source of novel concepts, products, services, and/or business models. In any economy, entrepreneurs play a crucial role because they have the knowledge and drive to foresee demands and market valuable new ideas. Profits, notoriety, and prospects for ongoing expansion are given to entrepreneurialism that succeeds in assuming the risks involved in founding a startup. Failure in entrepreneurship costs the participants money and reduces their visibility in the market.

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Answer:

The owner of the coffee shop.

Explanation:

A paving company has 24 employees, 15 with gross earnings of $365 per week and nine with gross earnings of $395 per week. What is the total social
security and Medicare tax (in $) the company must send to the Internal Revenue Service for the first quarter of the year?

Answers

Answer:

hope this help you have a great day

Explanation:

17,781.66

Which of the following represents Joe's realization about social and
environmental problems after his experience in Central America?

Answers

Since no one was answering this question, imma answer it its, Social and environmental degradation are really business problems.

The ___ is an independent and private organization that tracks the actions of the business cycle.
A. Better Business Bureau
B. Federal Trade Commission
C. Consumer Financial Protection Bureau
D. Department of the Treasury
E. National Bureau of Economic Research

Answers

E - National Bureau of economic research

Marcus Jones wants to invest $10,000 on January 1, 2020, so that he may withdraw 10 annual payments of equal amounts beginning January 1, 2035. If the fund earns 10% annual interest over its life, what will be the amount of each of the withdrawals?

Answers

Answer:

1000$ can be able to january 1, 2020 so that he withdraw 10 annual paymets

Explanation:

tama yan pa brainlist

Robert Ando currently earns a monthly salary of $2,400. He has been offered a raise of $200 a month. How much more will he earn per year at his new salary?

Answers

well

let’s firstly times $2,400 by 12 which will give us $28,800 this is Roberts annual pay before a raise

than we times $200 by 12 which is $2400 which will be his raise.

Lastly we add it together which is $31,200

the equation would be (2,400 x12) + (200 x12)= 28,800 + 2400=31,200

Hope this helped :)
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