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Tcecarenko [31]
2 years ago
14

Under normal conditions (70% probability), Plan A will produce $20,000 higher return than Plan B. Under tight money conditions (

30% probability), Plan A will produce $100,000 less than Plan B. What is the expected value of returns?
A. ($16,000)
B. ($2,000)
C. $28,000
D. $58,000
Business
1 answer:
Lorico [155]2 years ago
3 0

Answer:

A. ($16,000)

Explanation:

The computation of the expected value of return equal to

=  (Higher return × probability rate) - (Less return -  probability rate)

= ($20,000 × 70%) - ($100,000 × 30%)

= $14,000 - $30,000

= - $16,000

For computing the correct value we have to deduct the tighter money conditions from the normal conditions.

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Many software companies allow customers to use limited versions of their software free for 30 days. This strategy tries to incre
vodka [1.7K]

Answer:

d. trialability

Explanation:

Based on the information provided it can be said that this strategy tries to increase the diffusion of a new product through increasing trialability. This term refers to the ease with which potential customers can test out a company's new product or service for a limited time without having to pay money for it. This allows them to determine whether the product/service is good for them and whether it is worth buying.

5 0
2 years ago
It takes 3 minutes to load and 2 minutes to unload a machine. Inspection and packing times total 1 minute; travel between machin
oksano4ka [1.4K]

Answer:

(a) The ideal machine assignment time is 7 minutes

(b) Duration of the repeating cycle is 25 minutes. Yes, there will be idle operator time of 7 minutes

(c) Cost per unit produced if three machines are assigned to an operator is $13.88 per unit

Explanation:

Loading = 3 minutes

Unloading = 2 minutes

Run time = 20 minutes

Inspection and packing times = 1 minute

Operators cost $10 per hour

Machines cost $30 per hour

(a) Ideal machine assignment = Machine cycle time ÷ Operator time per machine

Here, Machine cycle time = run time + load time + unload time

= 20 + 3 + 2

= 25  minutes

Operator time per machine = load time + unload time + inspection and packing time = 3 + 2 + 1 = 6

Hence, Ideal machine assignment = 25 ÷ 6 = 4.166=4.17 machine

(b) The number of machine assigned is less than ideal machine assignment hence, Operator will be idle.

Duration of repeating cycle = loading time + unloading time + machine run time = 3+2+20 = 25 minutes

Idle operator time = Cycle time - (number of machines assigned × (load time+ unload time+ inspection and packaging time))= 25- [3×(3+2+1)]

=25-18

=7 minutes

(c) Total cost of per unit produced = ((cost per operator hour + number of machines assigned × cost of per machine hour) × ((loading & unloading time + machine run time)÷60) )) ÷ number of machine

=( (10+[3×30]) × ((3+2+20) ÷ 60)) ÷ 3

=(100 × .416) ÷ 3

= 25 ÷ 3

= $13.88 per unit.

0 0
2 years ago
Congress would like to increase tax revenues by 17 percent. assume that the average taxpayer in the united states earns $52,000
Vadim26 [7]

Calculation of average tax rate that will result in a 17 percent increase in tax revenues:


Currently, the average taxpayer in the united states earns $52,000 and pays an average tax rate of 20 percent, so the average tax revenue is 52000*20% = $10,400

If Congress wants to increase tax revenues by 17 percent, then the average tax revenue shall be 10400+(10400*17%) = $12,168


Hence average tax rate that will result in a 17 percent increase in tax revenues shall be = 12168 / 52000 = 0.234 = <u>23.40%</u>






3 0
2 years ago
Accenture's Security practice makes use of a number of accelerators when building solutions for our clients. What is the purpose
Vilka [71]

Answer:

To deploy and integrate security features in a shorter period of time

Explanation:

Given that accelerator in cybersecurity is a means of enhancing the implementation and information of security measures in a very faster way.

Therefore, the purpose of Accenture's Security practice of using several accelerators when building solutions for their clients is "to deploy and integrate security features in a shorter period of time."

6 0
1 year ago
Decker Tires' free cash flow was just FCF0 = $1.32. Analysts expect the company's free cash flow to grow by 30% this year, by 10
Alborosie

Answer:

d. $34.87

Explanation:

We need to calcualte the value of the company. This is done by addingthe present vbalue of the future free cash flow of the firm.

FCF0 = 1.32 (current accounting period)

FCF 1.32 + 30% = 1.716

FCF2 FCF1 + 10% = 1.716 x 1.1 = 1.8876‬

FCF3 FCF + 5% = 1.8876 x 1.05 =  1.98198‬

From here after we use the gordon model:

\frac{divends}{return-growth} = Intrinsic \: Value

WACC = 9%

grow = 5%

we use FCF instead of dividends: 1.98198

\frac{1.98198}{0.09-0.05} = Intrinsic \: Value

Value of the future cash flow 49,5495

Now, as this are in the future we must adjust using the present value of a lump sum:

\frac{1.716}{(1 + 0.09)^{1} } = PV  

PV   1.5743

\frac{1.8876}{(1 + 0.09)^{2} } = PV  

PV   1.5888

\frac{49.5495}{(1 + 0.09)^{2} } = PV  

PV   41.7048

Total: 1.5743 + 1.5888 + 41.7048 = 44,8679‬

Now we adjust for shrot term investment and debt outstanding:

vresent value of the future cash flow 44,8679‬

short term investment:                          4.0000

debt outstanding                                <u>   (14.000)  </u>

Net:                                                        34.8679

6 0
1 year ago
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