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LenKa [72]
2 years ago
14

Your buddy in mechanical engineering has invented a money machine. The main drawback of the machine is that it is slow. It takes

one year to manufacture $100. ​However, once​ built, the machine will last forever and will require no maintenance. The machine can be built​ immediately, but it will cost $1,000 to build. Your buddy wants to know if he should invest the money to construct it. If the interest rate is 9.5% per​ year. a. What should your buddy​ do? b. What is your advice if the machine takes one year to​ build?
Business
1 answer:
m_a_m_a [10]2 years ago
5 0

Answer:

 

Explanation:

a ) We shall calculate the NPV of the project . If it is positive , then money can be invested

Cash outflow in the beginning =1000

Present value of perpetual annuity of 100 at 9.5 %

100 / .095

= 1052.63

which is more than initial cash outflow

So NPV is positive

Hence money can be invested.

b )

If machine takes one year to build , first year cash outflow of 100 will be absent

Present value of 100 after 1 year

= 100 / 1.095

= 91.32

So present value of annuity

= 1052.63 - 91.32

= 961.31

This is less than 1000 so

NPV is negative.

Hence money can not be invested.

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iren [92.7K]

Answer:

Net profit= 475000

Explanation:

Giving the following information:

Scenario 15-8 Mega Media Cable TV can purchase an exclusive right to sell a premium sports channel in its market area.

Fix cost= $100,000

Price= $25

Occasional sports viewers= 20000

Hardcore sport viewers= 3000

Revenues= 23000*25= $575000

Fix cost= (100000)

Net profit= 475000

8 0
2 years ago
A consultant hired by your organization has advised your manager to increase his team's cohesiveness. he asks you, "what benefit
Natalija [7]

Answer:

  • <u>Members of teams with high cohesiveness feel higher loyalty to the team and have better job satisfaction.</u>
  • <u>Teams with high cohesiveness are generally more productive due to the energizing effect of regular interaction among team members.</u>

Explanation:

Remember, cohesiveness looks at the degree to which team members <em>stick</em> together in times of difficulties.

Also cohesive teams are good communicators; they would involve in regular interactions among team members, an attitude which when applied to an organisation setting would increase the team's productivity.

7 0
2 years ago
Read 2 more answers
Apple is an established firm that encourages and emphasizes entrepreneurial behavior throughout its various divisions. Apple pra
lyudmila [28]

Answer:

Corporate entrepreneurship

Explanation:

Corporate entrepreneurship -

It is the method , adapted to establish some fresh business services , products and processes in an already existing organization is referred to as a corporate entrepreneurship .

This method is adapted in order to generate revenue and incorporate new goods and services .

This method increases the innovation and growth of the existing organisation.

Hence , from the given scenario of the question,

The correct term is Corporate entrepreneurship .

5 0
2 years ago
A freelance writer must choose how to spend her time working on several different types of projects. Newspaper stories take 3 ho
natali 33 [55]

45N + 400M + 20P ≥ 45 is the constraint that limits the amount of time the writer will work each week.

Explanation:

Integer constraints limit any or all variables to only allow integer values in the optimisation issue. It allows for precise simulation of situations that include discrete numbers (such as equity shares) or decisions yes or no.

Both "limits" and "restrictions" are "restrictions," which may be the broadest word to denote anything that prohibits a entity or a mechanism from happening. "Standards" and "controls" typically feel like standing back, where "stretches" sound like being alone.

7 0
2 years ago
Please hep me solve this thank you!Tevebaugh Corporation is a manufacturer that uses job-order costing. The company closes out a
jarptica [38.1K]

Answer:

$546,750

Explanation:

Sales                  2,498,000

COGS                (1,376,000)

gross profit        1,  112,000

S&A salaries        (219,000)

other S&A           (346,000)

underapplied MO  (10,250) *

net income           536.750‬

*we need to compare the actual voerhead with the applied overhead:

<u>actual overhead:</u> 176,000 + 420,000 = 596,000

<u>applied overhead:</u>

overhead rate:

\frac{Cost\: Of \:Manufacturing \:Overhead}{Cost \:Driver}= Overhead \:Rate

568,000 / 32,000 = 17.75

33,000 x 17.75 = 585.750

      overhead

<u>debit              credit</u>

596,000    585,750

                    10,250 underapplied overhead

As the applied was lower it is underapplied we need to recognzie more cot thus, the net income decrease.

4 0
2 years ago
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