Answer:
No. The payback period is 3.8 years
Explanation:
The payback period measures how long it takes for the amount invested in a project to be recovered from the cumulative cash flows.
The amount invested = $4,200 + $1,500 = $5,700
Please check the attached image for an explanation on how the payback period was calculated.
Pay back period = 3 years + 1400/1750 = 3.8 years.
3.8 years is greater than the required 3 years Payback period. Therefore, Jack shouldn't accept the project.
I hope my answer helps you
Answer:
D. $686
Explanation:
Given that
Credit sale = 750
Return = 50
Terms 2/10
Amount received in full therefore,
= [(750 - 50) - (750 - 50 {2%})]
= 700 - (700 × 0.02)
= 700 - 14
= $686
Answer:
a) 749
b) 4.073
Explanation:
Given:
Mean = demand = 80 pounds
Standard deviation of demand = 10 pounds
Lead time = 8 days
Standard deviation of lead time = 1 day
a) What ROP would provide a stock out risk of 10 percent during lead time.
To find this re-order point (ROP) quantity, take the formula:
Here, service level = 100%-10% = 90%,
Thus z at 90% = ±1.28
= 640 + 1.28* 84.85
= 748.61
≈ 749 units
b) What is the expected number of units (pounds) short per cycle.
Find the number of units shorts per cycle. Take the formula:
[
Where E(z) = standardized number of shorts = 0.048
= standard deviation of lead time demand = 84.85
Therefore,
E(n) = 0.048 * 84.85
= 4.073
Answer:
Mark should invest:
- $30,000 in short term bonds
- $30,000 in intermediate term bonds
- $40,000 in long term bonds
Explanation:
S = short term bonds
I = intermediate term bonds
L = long term bonds
S + I + L = 100,000
0.04S + 0.06I + 0.07L = 0.058 x 100,000 = 5,800
S = I
2S + L = 100,000
L = 100,000 - 2S (now we replace both I and L)
0.04S + 0.06s + 0.07(100,000 - 2S) = 5,800
0.1S + 7,000 - 0.14S = 5,800
7,000 - 5,800 = 0.14S - 0.1S
1,200 = 0.04S
S = 1,200 / 0.04 = 30,000
I = 30,000
L = 100,000 - 60,000 = 40,000
Answer:
1. Time is scarce so Trey must decide whether to buy the car as soon as possible or to keep his position on the team
2. Entrepreneurship
3. A supply truck
4. Josephine felt she could help students most by improving teachers' skills
5. Profit
6. The ability to produce goods at a lower price
7. Feels the marginal benefit of an extra hour of studying exceeds the marginal cost of not playing basketball.
Explanation:
1. Trey should not take too long to make his decision as time is scarce. If he does, then the price of the car may fluctuate or someone else might end up buying it.
2. Janice is the one who came up with the idea of setting up the business and she is also the risk-taker here. For this reason, she represents entrepreneurship.
3. A supply truck is the capital for a construction company because it is used as an input to deliver the material.
4. Josephine identified the problem that teachers need to be taught better management skills for the sake of students' success.
5. Profit is one of the many major goals of business owners because that amount is used to pay for future business-related needs. It is also important because it keeps the business up and running.
6. Singapore offered lowered rates of production. Although other facilities are better in Michigan the cost of production will increase a lot. Therefore, the ability to produce goods at a lower cost is the opportunity cost.
7. Russel believes that studying extra will make his future bright than playing basketball. Also, the benefits of studying are more than the disadvantages of not playing basketball.
