Your factory has been offered a contract to produce a part for a riew printer. The contract would last for three years, and your cash flows from the contract would be $5.07 minion per year, Your upfront sectup costs to be ready to produce the part would be $8.01 milion. Your discount rate for this contract is 7.6%. a. What is the lRR? b. The NPV is 35.15 milion, which in positve so the NPV n/e says to accept the projoct. Does the irR rule agree with the NPV rule?
Answers
a. The IRR for the given cash flows and setup costs approximately 19.32%.
b. Both the NPV rule and the IRR rule agree in this case since the NPV is positive and the IRR is greater than the discount rate. Therefore, both rules indicate that the project should be accepted.
a. To calculate the IRR (Internal Rate of Return) for the contract, we need to find the discount rate that makes the net present value (NPV) of the cash flows equal to zero.
The cash flows from the contract are $5.07 million per year for three years, and the upfront setup costs are $8.01 million. Therefore, the cash flows can be represented as follows:
Year 0: -$8.01 million (initial setup cost)
Year 1: $5.07 million
Year 2: $5.07 million
Year 3: $5.07 million
Using a financial calculator or spreadsheet software, we can calculate the IRR. The IRR represents the discount rate at which the NPV of the cash flows is zero.
Calculating the IRR for the given cash flows and setup costs, we find that the IRR is approximately 19.32%.
b. The NPV (Net Present Value) of the cash flows for the contract is $35.15 million, which is positive. According to the NPV rule, a project should be accepted if the NPV is positive.
The IRR rule states that a project should be accepted if the IRR is greater than the required rate of return or the discount rate. In this case, the IRR is 19.32%, which is greater than the discount rate of 7.6%.
Both the NPV rule and the IRR rule agree in this case since the NPV is positive and the IRR is greater than the discount rate. Therefore, both rules indicate that the project should be accepted.
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Related Questions
a monopoly earns total revenue of $5000 when it sells 500 units of output and total revenue of $5400 when it sells 600 units of output. thus, the marginal revenue of the 600th unit is $9. true false
Answers
The given statement "a monopoly earns total revenue of $5000 when it sells 500 units of output and total revenue of $5400 when it sells 600 units of output. Thus, the marginal revenue of the 600th unit is $9" is false as it is $4.
Marginal Revenue is the increase in total revenue that results from selling an additional unit of output. Marginal revenue is calculated by dividing the change in total revenue by the change in output. The statement has given the total revenue generated by the monopoly at different levels of output.
The change in total revenue is $400 ($5400-$5000).
Change in output is 100 (600-500).
Marginal Revenue= Change in total revenue / change in output= $400 / 100= $4
Thus, the marginal revenue of the 600th unit is $4, not $9. Therefore, the statement given is false.
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Which of the following is a style trend?
A. An increase in the population of young parents in a neighborhood
B. The popularity of a new type of jeans
C. An increased concern for protecting the environment
D. The popularity of cell phones that can access the Internet
Answers
B
Explanation:
Raising animals in a CAFO has the benefit of keeping manure contained and away from farm fields where it would lead to erosion and loss of soil fertility Not yet answered Points out of 1.00. True or False?
Answers
True. Concentrated animal feeding operations (CAFOs) are large-scale facilities where animals are raised indoors in close confinement. CAFOs are often criticized for their environmental impact, including the production of large amounts of manure.
However, CAFOs can also have some benefits, such as keeping manure contained and away from farm fields where it could lead to erosion and loss of soil fertility. Manure is a valuable fertilizer, but it can also be a pollutant if it is not properly managed. When manure is spread on fields, it can contribute to nutrient runoff, which can pollute waterways and lead to algae blooms. CAFOs can help to reduce nutrient runoff by collecting and storing manure on-site. This allows the manure to be applied to fields in a controlled manner, which helps to prevent nutrient pollution. In addition to reducing nutrient runoff,.
CAFOs can also help to improve soil quality. Manure contains nutrients that are essential for plant growth, such as nitrogen, phosphorus, and potassium. When manure is applied to soil, it can help to improve the soil's ability to hold water and nutrients, which can lead to increased crop yields.
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In what step of the 7-Step Product Development Process is the product brought to
life through sketching and illustration?
Sourcing
Research
Planning
Prototyping
Answers
Answer: planning
Explanation: The sketch should be as detailed as possible, with labels explaining the various features and functions.
name two limitations of using this trait approach to categorize or evaluate leadership
Answers
The trait theory assumes that there are specific personality traits that are common to all effective leaders. However, this theory has several limitations.
Here are two limitations of using this trait approach to categorize or evaluate leadership:
1. Overemphasis on traits: The trait theory overemphasizes the role of personality traits in determining effective leadership. It assumes that certain traits are essential for leadership and that people with these traits will be successful leaders. However, this approach overlooks the importance of other factors that contribute to effective leadership, such as situational factors, skills, and experience.
2. Lack of universality: The trait theory assumes that certain traits are universally important for leadership. However, research has shown that the importance of different traits can vary depending on the cultural context. For example, certain traits that are valued in Western cultures may not be valued in Eastern cultures, and vice versa. Therefore, the trait theory cannot be applied universally to all cultures and contexts.
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Describe an example of an equity investment that can also produce income. (1-3 sentences)
Answers
The most prevalent sort of equity income investing is stocks. Companies typically pay dividends to reward shareholders, attract investor money, and boost share prices when they have limited investment alternatives and extra cash.
A person decides to buy a book to read rather than buying a movie ticket. The movie ticket that the person has given up, is known as
Answers
Answer:
deficit
Explanation:
The person decided to buy a book rather than buy a movie ticket. The movie ticket given by the person is his opportunity cost.
What is an opportunity cost?Opportunity cost refers to the cost of forgone alternative. In simple words, it means the level of satisfaction that can be derived from choosing another thing over one.
If the person buys the book rather than buying a movie ticket, the satisfaction that can be derived from watching the movie will be termed as the opportunity cost incurred by the person.
Therefore the correct option is opportunity cost.
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On april 1, year 1, greenway corporation issues $20 million of 10%, 20-year bonds payable at par. interest on the bonds is payable semiannually each april 1 and october 1. on april 1, year 1, the journal entry to record issuance of the bonds will include: _________
Answers
A debit of $1,000,000 for interest expenses will be recorded in the journal entry that reflect the bond's issuance.
Describe a bond.When they need to collect funds, businesses and governments issue bonds. In exchange, they commit to repay you the face amount of the loan on a particular date and to make regular interest payments twice a year—along the way.
Bonds: Are they a wise investment?Bond rates have dramatically grown, giving investors the chance to make a respectable living. By the middle of 2023, inflation is projected to reach around 3.5%, and U.S. Treasuries with a 10-year tenor are currently earning more than that. That entails their "real," or consumer prices, value.
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.
Explain to NT the reasons why NGO's and CBO'S form part of the market
environment.
Answers
Answer:
Explanation:
As a result, NGOs can interface easier with the sector and generally have more access to information and resources, while CBOs are formed by people as a way of responding to the needs and challenges facing their communities. However, in some instances it is the CBOs that do the work the NGOs receive funding for
The reason for NGO and CBOS for part of the market environment should be explained below.
Reasons:Since NGOs could interface easier along with the sector and normally have more access to information and resources, while on the othe rhand CBOs are created by people this represent responding to the needs and challenges that are faced by the communities. But, in some situations, it is the CBOs that do the work the NGOs collecting the funding.
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Now suppose firm x undertakes a process innovation that reduces its marginal cost of production from $20 to $15. the fixed cost of undertaking this process innovation is f > 0. is this a tough commitment or a soft commitment? why? for what values of f would it makes sense for firm x to make this commitment?
Answers
Answer:
(A). It is a tough commitment.
(B). when the value of f is less or equal to 198.
Explanation:
So, we are given from the question above that;
=> there is reduction in the marginal cost of production from $20 to $15.
=> Also, the fixed cost of undertaking this process innovation is f > 0.
Recall that the demand functions is given as;
Qx = 80 – 2Px + Py. ------------------(**).
Qy = 80 – 2Py + Px a).---------------------(***).
Hence, if we Differentiate πx with respect to Ax we will have that;
(Px - 15) × (-2) + ( 80 - 2Px + Py) = 0. ----------------------------------------------------------(1).
=> 110 + Py = 4 × Px.
Solving for Py and Px using the Bertrand equilibrium gives;
Px = 37.3 and Py = 39.3.
If we slot in the values of Py and Px above into the demand function in equation (**) and (***) we will have;
Qx = 44.7 and Qy = 38.7.
Before innovation = (40 - 20) × 40. = 800
Then, (39.3 - 20) × 38.7 = 747.3 is the after innovation.
(37.3 - 15) × 44.7 - f.
=> 997.5 - f (after innovation).
The values of f would it makes sense for firm x to make this commitment when;
after innovation > before innovation.
997.5 - f > 800.
=>f is less or equal to 198.
project has four activities that take 4, 3, 6, and 7 days respectively. What is the total completion time for the project?
A. 3 days, as this is the minimum time
B. 7 days, as this is the maximum time
C. 20 days, as this is the sum of the times
D. lt is not possible to determine the total completion time from the given information
Answers
The total completion time for the project is 20 days.
What is a project?
A project is a collection of activities or tasks that are completed in a predetermined order to achieve a specific aim. A project is a time-bound activity that is typically aimed at achieving a specific goal or objective. A project must have a clear objective and a specific timeline for completing each activity or task. Each task must be completed in order to finish the project on time and to meet the specified goal or objective.What is a project schedule?A project schedule is a tool that aids in the planning and management of a project. It aids in the organization of all of the tasks that need to be completed in order to achieve the project's goal or objective. The schedule aids in the allocation of resources and the management of risk by identifying potential delays and issues that could derail the project's completion.Each task's duration is critical to the project schedule, and it is usually estimated based on past performance, historical data, or expert knowledge.
What is the total completion time for the project?
To calculate the total completion time for the project, you must first add up the duration of all of the project's tasks. The total completion time for the project is the sum of the time it takes to complete each task. Therefore, option C, which states that the total completion time for the project is 20 days, is the correct answer.In conclusion, the total completion time for the project, which has four activities that take 4, 3, 6, and 7 days respectively, is 20 days.
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An organizational model that consists of a company's overseas subsidiaries and is characterized by centralized decision making
and tight control by the parent company over most aspects of worldwide operations is known as the model.
A. international
B. multinational
C. global
D.
transnational
E. intranational
Answers
A multinational company generally has offices and/or factories in different countries and a centralized head office where they coordinate global management. These companies, also known as international, stateless, or transnational corporate organizations tend to have budgets that exceed those of many small countries.
Select all that apply.
Common skills assessments administered during the employment interview process include:
none of the above
science
keyboarding
math
Answers
Answer:
Keyboarding and Math :)
Explanation:
Briefly explain how the Northwest Ordinance promised
good Government to the American settlers in the Northwest
Territory?
Answers
The Northwest Ordinance was a significant piece of legislation that played a crucial role in shaping the future of the United States. It offered many promises to the American settlers in the Northwest Territory, including religious freedom, education, and the prohibition of slavery.
The Northwest Ordinance promised good government to the American settlers in the Northwest Territory in several ways. This was a significant piece of legislation that was enacted in the United States in 1787, with the primary objective of creating new states in the territory that was northwest of the Ohio River. Some of the promises that the Northwest Ordinance made included the following:
Religious Freedom: The Northwest Ordinance offered religious freedom to all settlers who chose to live in the Northwest Territory. This was an important promise, as religious freedom was not always guaranteed in other parts of the United States. It was particularly crucial in the Northwest Territory because the area was home to a diverse population of settlers who had different religious beliefs. Therefore, the promise of religious freedom helped to ensure that all settlers would be treated equally and could worship as they pleased.
Education: The Northwest Ordinance also promised that education would be available to all settlers living in the territory. This was a significant promise, as education was not always a priority in other parts of the United States. The promise of education helped to ensure that settlers would have access to the resources they needed to improve their lives and build successful communities.
Slavery: The Northwest Ordinance promised that slavery would not be allowed in the Northwest Territory. This was a major accomplishment, as it helped to ensure that the region would remain free from the shackles of slavery. This promise played a crucial role in shaping the future of the United States, as it helped to create a more just and equal society.
These promises helped to ensure that the region would be home to a diverse and thriving population of settlers who would play an important role in building the United States into the great nation that it is today.
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What system did merchants in early centuries use to make commercial transactions easier
Answers
In the early centuries, merchants made use of the Mercantilism system for commercial transactions.
What is Mercantilism?In simple terms, it is an economic theory and practice known as "mercantilism," which was prevalent in Europe from the 16th to the 18th century.
Mercantilism advocated governmental regulation of a country's economy with the goal of enhancing state power at the expense of competing for national powers.
According to the theory, a strong nation should have a sizable population because a sizable population would offer a supply of labor, a market, and soldiers.
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m.e. carter launched carter company, a professional services firm on march 1. the firm will prepare financial statements at each month-end. in march (its first month), carter executed the following transactions. enter the transactions, a through g, into the financial statement effects template below. a. carter (owner) invested in the company $100,000 cash and $20,000 in property and equipment. the company issued common stock to carter. b. the company paid $3,200 cash for rent of office furnishings and facilities for march. c. the company performed services for clients and immediately received $4,000 cash for these services. d. the company performed services for clients and sent a bill for $24,000 with payment due within 60 days. e. the company compensated an office employee with $4,800 cash as salary for march. f. the company recieved $10,000 cash as partial payment on the amount owed from clients in transaction d. g. the company paid $935 cash in dividends to carter (owner). use negative signs with answers, if appropriate.
Answers
Carter launched carter company, a professional services firm on march 1. the firm will prepare financial statements at each month-end. in march (its first month), carter executed the following transactions. enter the transactions, a through g, into the financial statement effects template below.
a. carter (owner) invested in the company $100,000 cash and $20,000 in property and equipment. the company issued common stock to carter.
b. the company paid $3,200 cash for rent of office furnishings and facilities for march.
c. the company performed services for clients and immediately received $4,000 cash for these services.
d. the company performed services for clients and sent a bill for $24,000 with payment due within 60 days.
e. the company compensated an office employee with $4,800 cash as salary for march.
f. the company recieved $10,000 cash as partial payment on the amount owed from clients in transaction d.
g. the company paid $935 cash in dividends to carter (owner). use negative signs with answers, if appropriate.
The $935 in transaction g represents the portion of the dividend that is not paid out of retained earnings. It is subtracted from Common Stock to reflect the reduction in equity.
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Graham is hiking a trail that is 512 miles long. He has hiked 358 miles so far.
Which expression shows how many miles he has left to hike? A. 512+58
B. 512+358
C. 512−58
D. 512−358
Answers
Suppose that the price of a new bicycle is $300. Sue values a new bicycle at $400. It costs $200 for the seller to produce the new bicycle. What is the value of total surplus if Sue buys a new bike
Answers
The value of total surplus if Sue buys a new bike is $200.
What is the total surplus?
Total surplus is the sum of consumer surplus and producer surplus.
Consumer surplus is the difference between the value a consumer places on a good and the price of the good.
Consumer surplus = $400 - $300 = $100
Producer surplus is the difference between the price of a good and the least price the seller is willing to sell the product or the cost of production of the product.
Producer surplus = $300 - $200 = $100
Total surplus = $100 + $100 = $200
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Match the term with the correct definition.
Democracy:
Aristocracy:
Oligarchy:
Kleptocracy:
Gynecocracy:
Autocracy:
Answers
A state where politicians and government employees steal a significant amount of the wealth of the nation because corruption has become so institutionalized.
government signifies "rule by the trivial few" 2.Based on their military might, family power, or religious authority, very few people hold all power.3.It is not uncommon for oligarchies to originate from or lead to other types of government, such as monarchies and dictatorships.
How does direct democracy work?
Direct majority rules system, in some cases called "unadulterated majority rules system," is a type of a vote based system in which all regulations and strategies forced by still up in the air by individuals themselves, as opposed to by delegates who are chosen by individuals.
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if electrical disturbances are recorded over an extended period and the monitoring equipment indicates they are on the utility side of the pcc, what should be done to remedy the disturbances?
Answers
If an electrical disturbances are recorded over an extended period and the monitoring equipment indicates they are on the utility side of the PCC, in order to remedy the disturbances, the utility should be informed of the monitored events.
What is an electrical disturbance?This refers to an electrical or magnetic damage, disturbance of electronic recordings or erasure of electronic recordings. This disturbance encompasses 3 broad categories which includes an electrical or magnetic damage, electronic recording disturbances, and erasure of electronic recordings.
An Electrical Design Power hardware and software is very susceptible to these electrical disturbances. The most common electrical disturbance losses are damaged circuitry, erroneous results, loss of data, system failure, and system shutdown. As well, these electrical disturbance is normally excluded from property coverage forms which is one of the main reasons to buy specialized EDP coverage
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The Following are some of the recommendations the Qantas airlines could have used as effective strategies during the pandemic. Please explain each one and how they would of worked to help Qantas airline company run in the future.
1. Leased its parking spaces at some of the most important locations of the world.
2. Focussed on domestic air travel during the pandemic
3. Focussed on bringing in citizens who were stranded in international locations
Answers
Leasing its parking spots of airlines at key areas all over the planet might have been a possible procedure for Qantas to produce income and keep up with tasks during the pandemic. This is the way it might have worked:
1. Differentiating income streams: As the pandemic seriously airlines travel interest, carriers confronted critical monetary difficulties. By leasing its parking spots at significant areas, Qantas might have taken advantage of elective income streams beyond its conventional plan of action.
2. Using inactive resources: With numerous airlines grounded and less flights working, Qantas had an excess of parking spots at air terminals internationally. Leasing out these spaces would have permitted the organization to utilize inactive resources and transform them into an expected type of revenue.
3. Key associations: Qantas might have investigated associations with different aircrafts or flight related organizations to expand the capability of pandemic its parking spots. By working with these accomplices, the organization might have haggled commonly advantageous arrangements, for example, long haul leases or income sharing models.
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Can you outsmart me test? I will give you 20 brainly points!
Answers
Answer:
Yes I can outsmart you :)
Explanation:
mention the opportunities that education creates for job
Answers
learn how to do that job
being able to have good communication skills
Write a question keep it simple
Answers
Answer:
Why do people break up if they love each other?
Explanation:
sorry it's not simple lol
Describe factors that encourage conspicuous
consumption by the purchase of status sym-
bols.
Answers
Veblen's initial thesis said that better social standing and peer recognition were the two key factors influencing ostentatious consumption.
Conspicuous consumerism is the act of acquiring things or services specifically with the intention of flaunting one's affluence. When publicly exhibited products and services are too expensive for other people in a person's class, conspicuous spending is a way to demonstrate one's social position.
What is the conspicuous consumerism theory?
Conspicuous consumption is defined as. Displaying extravagant riches in order to improve one's standing and reputation in society is known as conspicuous spending.To Learn more about conspicuous consumption, click the links
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chemical plants, oil refineries, liquor producers, pharmaceuticals, and nuclear power plants are examples of _____ production. question 11 options: a) mass b) large-batch c) continuous-process d) unit
Answers
Chemical plants, oil refineries, liquor producers, pharmaceuticals, and nuclear power plants are all examples of continuous-process production.
Continuous-process production involves the use of automated systems and machinery to continuously produce large quantities of a product without interruption. This method is typically used for products that have a high demand and require a consistent level of quality and uniformity in their production. The process involves feeding raw materials into the production system, which then goes through a series of automated steps to produce the final product. This method is different from mass and large-batch production, which involves producing a large quantity of a product in one batch or cycle.
The unit production method, on the other hand, involves the production of one item at a time, typically used in custom manufacturing or specialty production.
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The people in an economy have $25 million in money. There is only one bank where they deposit their money and it holds 10% of the deposits as reserves. What is the money multiplier in this economy?.
Answers
The money multiplier in this kind of economy is 10.
What is money multiplier?A money multiplier is one of several closely related ratios of commercial bank money to central bank money in monetary economics when applied to fractional reserve banking systems. Given a certain amount of central bank money, it has to do with the maximum amount of commercial bank money that can be produced. The total amount of loans that commercial banks are permitted to extend is equal to a multiple of the amount of reserves in a fractional reserve banking system with legal reserve requirements. This multiplier, which is also known as economic multiplier, is equal to reserve ratio divided by one. The fact that some funds are held as currency by the non-bank public lowers the actual ratio of money to central bank money, also known as the money multiplier.
10% of $25, 000, 000= $2,500,000
Money multiplier in economy is by 10
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In reading #47 "Boomsday", what does the "perfect economic storm" refer to? the number of people growing older that will deplete the labor force the great depression the mortgage lending crisis mountainous national debt, a deflating economy and 77 million people retiring
Answers
The "perfect economic storm" in the reading "Boomsday" refers to the combination of mountainous national debt, a deflating economy, and 77 million people retiring.
The "perfect economic storm" in the reading "Boomsday" refers to the combination of mountainous national debt, a deflating economy, and 77 million people retiring. This phrase symbolizes a severe and challenging economic situation resulting from these factors. The mountainous national debt signifies a significant financial burden on the country, while a deflating economy indicates a decline in economic growth and activity. Additionally, the large number of people retiring puts strain on the labor force and can have implications for the overall economy. Collectively, these elements create a perfect storm of economic challenges and uncertainties.
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Which of the following defines the objectives of a project?
A) something that is required or in demand
B) targets and destinations for the project
C) statements of what the project will accomplish
D) all of the activities necessary for the project
Answers
statements of what the project will accomplish
Answer: D. all of the activities necessary for the project
Explanation: boss baby approved
There should be no minimum wage in America. Workers should negotiate their pay! Do you agree with this statement? Why or why not?
Answers
Answer:
Minimum wage is important because it dictates the lowest hourly wage that a worker much be given. If it was removed, corporations may be able to give workers lower than what minimum wage would have been. Corporations also may outright refuse to pay the workers what they want leaving them jobless.
Hope that helps