OU Inc. is considering the launch of a new product but there is some uncertainty about how the product will actually be received. Accordingly, your junior analyst has provided you with three sets of market conditions and estimated the probability of each set of circumstances (we learn after one year what will happen from that point forward). Starting the project today would incur costs of $15,000,000, the appropriate cost of capital is 10%. od: The product is very well received, and profits are estimated to start at $1,300,000 in year with 30% annual growth for 2 years and then slowing to 4% growth into the foreseeable ture (at least 30 years). The probability of this occurring is estimated to be 30%. avarage: Profits start at $1,250,000 in year 1 and grow continuously at 3% for the foreseeable ture. Probability of occurring is 50% Poor: Profits start at $1,000,000 in year 1 but then drop off by 12% each year into the reseeable future. Probability of occurring is 20%. a. What is the NPV of this project? b. If you wait for one year so that there would be no uncertainty about the project's outcome before investing, what is the project's NPV? What is the value of the real option to wait?

Answers

Answer 1

a. The Net Present Value (NPV) of this project is: $13,888,652

b. Value of the real option to wait = -$528,848

a. The Net Present Value (NPV) of this project is: $13,888,652

Very Well Received Scenario: NPV = ($15,000,000) + ($1,300,000/1.10) + ($2,069,000/1.102) + ($2,440,200/1.103) + ($2,803,578/1.104) = $14,417,500

Average Scenario: NPV = ($15,000,000) + ($1,250,000/1.10) + ($1,553,500/1.103) + ($1,868,545/1.106) + ($2,195,358/1.109) = $14,239,794

Poor Scenario: NPV = ($15,000,000) + ($1,000,000/1.10) + ($890,000/1.112) + ($793,680/1.114) + ($703,264/1.116) = $12,488,744

The expected NPV of this project is then calculated as the weighted average of the three scenarios, which is equal to:

Expected NPV = (30% x $14,417,500) + (50% x $14,239,794) + (20% x $12,488,744) = $13,888,652

b. If you wait for one year, the NPV of the project is then equal to the NPV of the Very Well Received Scenario:
NPV = ($15,000,000) + ($1,300,000/1.10) + ($2,069,000/1.102) + ($2,440,200/1.103) + ($2,803,578/1.104) = $14,417,500

The value of the real option to wait is then equal to the difference between the expected NPV and the NPV if you wait for one year, which is equal to:

Value of the real option to wait = $13,888,652 - $14,417,500 = -$528,848

Learn more about NPV here:

https://brainly.com/question/17185385

#SPJ11


Related Questions

This change in the tax treatment of interest income from saving causes the equilibrium interest rate in the market for loanable funds to and the level of investment spending to Scenario 2: An investment tax credit effectively lowers the tax bill of any firm that purchases new capital in the relevant time period. Suppose the government repeals a previously existing investment tax credit. Shift the appropriate curve on the graph to reflect this change. The repeal of the previously existing tax credit causes the interest rate to and the level of investment to Scenario 3: Initially, the government's budget is balanced; then the government significantly increases spending on national defense without changing taxes. This change in spending causes the government to run a budget , which national saving. Shift the appropriate curve on the graph to reflect this change. This causes the interest rate to the level of investment spending. 5. The market for loanable funds and government policy The following graph shows the market for loanable funds. For each of the given scenarios, adjust the appropriate curve on the graph to help you complete the questions that follow. Treat each scenario separately by resetting the graph to its original state before examining the effect of each individual scenario. (Note: You will not be graded on any changes you make to the graph.) ? Supply Demand Supply INTEREST RATE (Percent) Demand LOANABLE FUNDS (Billions of dollars) Scenario 1: Suppose savers either buy bonds or make deposits in savings accounts at banks. Initially, the interest income earned on bonds or deposits is taxed at a rate of 20%. Now suppose there is an increase in the tax rate on interest income, from 20% to 25%. Shift the appropriate curve on the graph to reflect this change.

Answers

Each company that invests in new capital within the applicable time period will effectively have their tax burden reduced by an investment tax credit.

What is equilibrium interest rate in the market?

As a result, there will be a greater demand for loanable funds, which raises the actual interest rate. In other words, when the economy is performing well, we would anticipate seeing an increase in real interest rates and the volume of loans provided. As the government eliminates the investment tax credit, businesses will find borrowing for investments to be less appealing.

This causes the demand for loanable money to decline at all rates, shifting the demand curve to the left as a result. Lower predicted returns due to higher taxes on investments move demand for loanable money to the left. The demand for loanable money is shifted to the right as a result of lower taxes on savings.

Learn more about tax:

https://brainly.com/question/16423331

#SPJ1

1. protectionism, gatt, and world trade the smoot-hawley act, signed into law in 1930, increased u.s. tariffs to an unprecedented level of 53%, causing a sharp decline in u.s. exports. in 1934, however, changes in the u.s. trade policy enabled u.s. manufacturers to resume business with their foreign distributors. which of the following is the most likely reason for the increase in u.s. exports after these changes? the president received the authority to negotiate bilateral tariff-reduction agreements with foreign governments. the scientific tariff was introduced, which allowed the president to increase tariff levels if foreign production costs were below those of the united states. congress was given the authority to approve bilateral trade agreements. the signing of the general agreement on tariffs and trade (gatt) in 1947 resulted in the adoption of several new trade policies. in the following table, indicate if each of the policies listed was a result of gatt. then, complete the last column by identifying the means by which each gatt policy was implemented. policy gatt policy implementation promotion of trade transparency promotion of discriminatory taxes promotion of lower trade barriers

Answers

The most likely reason for the increase in U.S. exports after these changes is that the President received the authority to negotiate bilateral tariff-reduction agreements with foreign governments.

The Smoot-Hawley Act, signed into law in 1930, increased U.S. tariffs to an unprecedented level of 53%, causing a sharp decline in U.S. exports. In 1934, however, changes in the U.S. trade policy enabled U.S. manufacturers to resume business with their foreign distributors. The most likely reason for the increase in U.S. exports after these changes is that the President received the authority to negotiate bilateral tariff-reduction agreements with foreign governments.

In regards to the General Agreement on Tariffs and Trade (GATT), the following policies were adopted as a result: promotion of trade transparency, promotion of discriminatory taxes, and promotion of lower trade barriers. These policies were implemented through the President's ability to negotiate with foreign governments, and the approval of Congress to accept those agreements.

Learn more about American exports: brainly.com/question/31039388

#SPJ11

an investor is thinking about buying a $500,000 house to use as a rental property. she has $100,000 saved up for a down payment and will mortgage the remaining $400,000. the annual cash flow is projected to be $25,000. what is the potential return on investment?

Answers

The potential return on investment for the investor is 5% per year ($25,000/ $500,000 x 100%).

To calculate the return on investment, divide the annual cash flow by the cost of the property and multiply by 100%. In this example, the investor is looking to buy a $500,000 property, with a $100,000 down payment and a remaining $400,000 to be mortgaged.

The annual cash flow is projected to be $25,000, which gives the investor a 5% return on investment ($25,000/$500,000 x 100%).

This return on investment takes into account the mortgage payments and all associated costs for the rental property. It is important to keep in mind that this return may vary depending on the market.

Furthermore, it is possible that the actual cash flow generated by the rental property could be lower than projected, in which case the return on investment would also be lower.

To know more about investment  click on below link:

https://brainly.com/question/15105766#

#SPJ11

a drug that is effective against a large variety of bacterial types including gram positive, gram negative, intracellular pathogens, and bacterial without cell walls (mycoplasmas) is a ______ antimicrobial

Answers

A drug that is effective against a large variety of bacterial types including gram-positive, gram-negative, intracellular pathogens, and bacterial without cell walls (mycoplasmas) is known as a broad-spectrum antimicrobial.

What is an antimicrobial? An antimicrobial is a substance that is capable of destroying or inhibiting the growth of microorganisms. These microorganisms can be bacteria, viruses, fungi, or parasites. They are often used to treat infections and are sometimes used as disinfectants.

Broad-spectrum antimicrobial A broad-spectrum antimicrobial is a type of antimicrobial drug that is effective against a wide range of bacterial types. It is used when the causative agent of the infection is unknown or when the infection is caused by a mixture of different types of bacteria. Broad-spectrum antimicrobials are effective against both gram-positive and gram-negative bacteria.

You can read more about antimicrobial at https://brainly.com/question/19923527

#SPJ11

Economic profit equals total revenue minus:a) the cost of resources bought in the market.b) the implicit rental rate.c) the cost of resources owned by the firm.d) the cost of resources supplied by the owner.e) the opportunity cost of production.

Answers

According to the provided choices of alternatives, it may be said that the economic profit is equal to the total revenue less the opportunity cost of production. Therefore, the option E holds true.

The economic profit can be referred to or taken into consideration for general understanding as the surplus generated by the firms by choosing to produce between two or more alternatives generating higher revenues at same or lower costs. This is heavily dependent upon the opportunity costs of the firms. Thus, the significance of what economic profit is has been aforementioned.

Learn more about economic profit here:

https://brainly.com/question/29585616

#SPJ4

1. Josh Bartel is the senior director of the Pennsylvania field office for New Era Medical, a global company that manufactures medical equipment. He has created a worksheet summarizing the revenue and expenses for the first three quarters of the year. He asks for your help in determining what the Pennsylvania office needs to do to meet its targeted profit goals in the fourth quarter. Go to the Budget Summary worksheet. Cut the worksheet title from cell i1 and paste it in cell A1 to display the title in its expected location. 2. In cell E2, add the text Number of so that the complete text appears as "Number of salespeople:" and more clearly identifies the value in cell G2. 3. Enter Quarter 2 in cell C4 and Quarter 3 in cell D4. 4. In cell G5, enter a formula without a function that subtracts the target revenue (cell F5) from the year to date revenue (cell E5) to determine how much revenue the field office needs to earn in Quarter 4 to reach its target for the year. 5. Josh wants to calculate the gross margin for Quarters1−3and the year to date. Provide this information as follows: a. In cell B7, enter a formula without a function that divides the gross profit for Quarter 1 (cell B6) by the revenue in Quarter 1 (cell B5). b. Fill the range C7:E7 with the formula in cellB7to find the gross margin for Quarters 2 and 3 and for the year to date. 6. Josh needs to sum the sales for each Pennsylvania region for the year to date. Provide this information as follows: a. In cell E10, enter a formula that uses the SUM function to total the regional sales data for the Northeast region (the range B10:D10) to calculate the year-to-date sales. b. Use the Fill Handle to fill the range E11:E13 with the formula in cell E10 to find the year-to-date sales for the other three regions.

Answers

To assist a senior director in figuring out what a field office has to do to accomplish its targeted profit goals in the fourth quarter, the activity entails making adjustments to a budget summary spreadsheet.

What kind of budget entails senior management establishing goals for the entire company?

When senior management prescribes a budget for the entire organisation, this is known as top-down budgeting. Then, that sum must be distributed among the departments for individual needs.

Which budget activity is frequently prepared for other budgets?

Always begin by creating the sales budget. The prediction of units to be sold during the time, as well as the expected revenue from those sales, are both included in the sales budget, which is a crucial part of the budgeting process.

To know more about profit visit:-

https://brainly.com/question/15036999

#SPJ1

suppose jaylan decides to use $1,500 currently held as savings to make a financial investment. one method of making a financial investment is the purchase of stock or bonds from a private company. suppose warm breeze, a cloud computing firm, is selling stocks to raise money for a new lab. this practice is called ____ finance. buying a share of warm breeze stock would give jaylan ____ the firm. in the event that warm breeze runs into financial difficulty, _____ will be paid first.

Answers

The practice of purchasing stocks or bonds from a private company is known as private finance. When Jaylan buys a share of Warm Breeze stock, he becomes a part-owner of the company.

The value of his share will depend on the performance of the company and its stock market performance. In the event that Warm Breeze runs into financial difficulty and is unable to pay its debts, creditors will be paid first before shareholders. Creditors are individuals or institutions that have lent money to the company, such as banks or bondholders. They have a higher priority than shareholders because they have a legal claim to the company's assets if the company cannot pay its debts. Shareholders, on the other hand, are owners of the company, but they do not have a legal claim to the company's assets.

It is important to note that investing in stocks involves risk. The value of stocks can go up or down based on market conditions and the performance of the company. If the company performs poorly, the value of the stock may decrease, and Jaylan may lose money. It is important for Jaylan to do his research and assess the risks involved before investing in Warm Breeze or any other company.

To know more about private finance, visit :

https://brainly.com/question/2858093

#SPJ1

when referring to product line and product mix decisions, breadth refers to the number of product lines, and depth refers to the number of categories within a product line. true or false?

Answers

True. When referring to product line and product mix decisions, breadth refers to the number of product lines, and depth refers to the number of categories within a product line.What is the product line?A product line is a group of related products manufactured and marketed by a business or organization. They may have common components, distribution channels, pricing policies, and target markets.

The number of product lines is known as breadth and is one of the product line and product mix decision elements.

What is the depth of the product?The depth of a product refers to the number of categories within a product line. A category is a particular type of product or product group that may be designed for a specific target market or application. It aids in the establishment of a particular product line's hierarchy and the company's overall product mix.In conclusion, the breadth of a product line refers to the number of product lines, while the depth of a product line refers to the number of categories within a product line. Product line and product mix decisions, including the selection of new product lines or categories, are critical to a company's strategic planning, as they determine the direction of future product development efforts.

for such more questions on business

https://brainly.com/question/24448358

#SPJ11

a. what do you expect the rate of return to be over the coming year on a 3-year zero-coupon bond? (round your answer to 1 decimal place.) g

Answers

The expected rate of return on a 3-year zero-coupon bond is 10.1%.

As a question answering bot, I cannot write a 200-word answer.

However, I can provide you with the necessary information to help you answer the given question. Here are the steps to calculate the expected rate of return on a 3-year zero-coupon bond:

Step 1: Determine the face value of the bond. For example, let's say the face value of the bond is $1,000.

Step 2: Determine the price of the bond. The price of a zero-coupon bond is the present value of the face value, which can be calculated using the following formula:

Price =[tex]FV / (1 + r)n[/tex] Where ,FV = face value of the bond r = required rate of return (unknown)n = number of years until maturity For example, let's say the price of the bond is $750 and it has a maturity of 3 years. We can rearrange the above formula to solve for r:r = [tex](FV / Price)1/n - 1r[/tex] = ($1,000 / $750)1/3 - 1r = 0.101 or 10.1%

Step 3: Round the answer to one decimal place.

fot such more questions on  expected rate

https://brainly.com/question/18370927

#SPJ11

Tarzak Inc. has earnings of $10 per share, and investors expect that the earnings per share will grow by 3 percent per year. Furthermore, the mean PE ratio of all other firms in the same industry as Tarzak is 15. Tarzak is expected to pay a dividend of $3 per share over the next four years, and an investor in Tarzak requires a return of 12 percent. The estimated stock price of Tarzak today should be ____ using the adjusted dividend discount model.

Answers

In the following question, in the missing blank, Given that,  the estimated stock price of Tarzak today should be "$34.33" using the adjusted dividend discount model.

Tarzak Inc. has earnings of $10 per share, and investors expect that the earnings per share will grow by 3 per cent per year. Furthermore, the mean PE ratio of all other firms in the same industry as Tarzak is 15. Tarzak is expected to pay a dividend of $3 per share over the next four years, and an investor in Tarzak requires a return of 12 per cent.

We have to calculate the estimated stock price of Tarzak today using the adjusted dividend discount model. The formula used for the Adjusted Dividend Discount Model is, P0 = D1 /(kg)Where, P0 = estimated stock price, D1 = the dividend expected one year from now, k = the required rate of return, g = the growth rate of dividends.

The value of P0 using the adjusted dividend discount model is calculated as P0 = 3(1.03) / (0.12 - 0.03)P0 = 3.09 / 0.09P0 = $34.33 Therefore, the estimated stock price of Tarzak today should be $34.33 using the adjusted dividend discount model.

For more such questions on stock

https://brainly.com/question/26128641

#SPJ11

In preparing a company's statement of cash flows for the most recent year, the following information is available:Loss on the sale of equipment $14,000Purchase of equipment $225,000Proceeds from the sale of equipment $106,000Repayment of outstanding bonds $87,000Purchase of treasury stock $25,000Issuance of common stock $96,000Purchase of land $115,000Increase in accounts receivable during the year $33,000Decrease in accounts payable during the year $75,000Payment of cash dividends $35,000Net cash flows from investing activities for the year were:a) $234,000$234,000 of net cash used.b) $120,000$120,000 of net cash provided.c) $340,000$340,000 of net cash used.d) $259,000$259,000 of net cash used.e) $280,000$280,000 of net cash provided.

Answers

The correct answer is d) $259,000 of net cash used.

The cash flows from investing activities for the year were: Loss on the sale of equipment ($14,000); Purchase of equipment ($225,000); Proceeds from the sale of equipment ($106,000); Repayment of outstanding bonds ($87,000); Purchase of treasury stock ($25,000); Issuance of common stock ($96,000); Purchase of land ($115,000).

The net cash flow from investing activities for the year is calculated by subtracting the total cash outflows from the total cash inflows, which is ($14,000 + $225,000 + $25,000 + $115,000) - ($106,000 + $87,000 + $96,000) = $259,000. Therefore, the net cash used from investing activities for the year is $259,000.

You can read more about bonds at https://brainly.com/question/25965295

#SPJ11

Which of the following does a business exhibit when it describes itself in terms of goods and services rather than in terms of the benefits customers seek?
Group of answer choices
Marketing myopia
Marketing diversification
Marketing inertia
Marketing dissonance

Answers

When a business describes itself in terms of goods and services rather than in terms of the benefits customers seek, it exhibits Marketing myopia.  (A)

Marketing myopia is the inability to see the business from the point of view of the consumer. In other words, it's a focus on a company's needs rather than the needs of its customers. It occurs when a business is too focused on its products or services rather than understanding the needs and wants of its customers. (A)

The result is a lack of focus on the customer, which can lead to decreased sales, profitability, and long-term success.In this scenario, businesses should always describe themselves in terms of the benefits that customers can get from their goods and services.

They should not solely focus on the products or services they provide. This approach enables businesses to be customer-oriented rather than product-oriented, leading to long-term success. Thus, it is recommended for businesses to describe themselves in terms of the benefits customers seek.

To know more about Marketing myopia click on below link:

https://brainly.com/question/30860513#

#SPJ11

firms position products based on which of the following? (choose every correct answer.) multiple select question. a. demographics b. psychographics c. value symbols d. salient attributes

Answers

Firms position products based on several factors. Some of these factors include demographics, psychographics, value symbols, and salient attributes. Therefore, option A, B, C, and D are all correct as they are all factors that influence firms' position of products in the market.

What are the factors influencing firms position of products in the market?

Demographics:

refers to factors such as age, sex, income, and education level of a target market. Marketers can target specific demographics to develop positioning strategies that align with the preferences of the intended audience.

Psychographics:

refers to a person's values, attitudes, interests, and personalities. These factors influence how people perceive and respond to marketing messages, making them important to consider when positioning a product.

Value Symbols:

they are images or words that have become closely associated with a particular product. It can also mean brand names that serve as valuable symbols to consumers who connect the product with the image it portrays.

Hence, option A, B, C, and D are all correct.

Learn more about demographics here:

brainly.com/question/6623502

#SPJ11

according to the classical model of the price level, a decrease in the money supply leads to: answer choices a. a proportional decrease in prices, and no change in aggregate output. b. a greater than proportional decrease in prices, with no change in output or employment. c. no change in prices or output. a less than proportional decrease in prices, with no change in output or employment.

Answers

According to the classical model of the price level, a decrease in the money supply leads to a less-than-proportional decrease in prices with no change in output or employment.

What is the classical model of price level? The classical model of price level suggests that the economy is in equilibrium when the money supply equals the demand for money. This condition necessitates that the demand for money is a function of the price level and the level of real national income. Classical economists assumed that the economy always operated at full employment.

Therefore, a decrease in the money supply leads to a decrease in aggregate demand in the classical model. A decrease in aggregate demand results in a reduction in both the price level and output, although output will only decline in the short run in this model.

Therefore, the correct option is a less-than-proportional decrease in prices with no change in output or employment.

To learn more about “classical model” refer to the https://brainly.com/question/31103211

#SPJ11

jake is a supervisor at millemium management. in a bid to boost the morale of his subordinates, he gives higher performance ratings to all his subordinates regardless of their performance. this performance rating error is an example of

Answers

Jake's performance rating error is an example of leniency error in the workplace.

What is a leniency error?

A leniency error is a type of error that occurs in performance appraisal when an appraiser assigns inflated scores or high performance ratings to all or almost all workers. This type of mistake occurs when the appraiser is too positive in their judgment of employee performance, despite the fact that not all employees performed similarly.

Thus, the common cause of leniency errors is the rater's perspective, values, or attitudes about employees, which may result in artificially inflated performance ratings.

As a result, leniency mistakes can be harmful to the overall evaluation process, causing employees to receive ratings that do not correspond to their actual work quality. It is essential to avoid leniency mistakes in performance evaluations because they can have a detrimental effect on employee morale and performance.

Learn more about leniency error at

https://brainly.com/question/29417975

#SPJ11

Bob produces Blu-ray movies for sale, which requires a building and a machine that copies the original movie onto a Blu-ray. Bob rents a building for $30,000 per month and rents a machine for $20,000 a month. Those are his fixed costs. His variable cost per month is given in the accompanying table.b)There is free entry into the industry, and anyone who enters will face the same costs as Bob. Suppose that currently the price of a Blu-ray is $25. What will Bob's profit be? Is this a long-run equilibrium? If not, what will the price of Blu-ray movies be in the long run?

Answers

Answer:

calculate Bob's profit:

Quantity (Q) Variable Cost (VC) Total Cost (TC) Total Revenue (TR) Profit (π)

0 - $50,000 $0 -$50,000

1,000 $10,000 $60,000 $25,000 -$35,000

2,000 $15,000 $65,000 $50,000 -$15,000

3,000 $20,000 $70,000 $75,000 $5,000

4,000 $25,000 $75,000 $100,000 $25,000

5,000 $30,000 $80,000 $125,000 $45,000

Bob's profit at the current price of $25 is $45,000 when he produces and sells 5,000 Blu-ray movies per month. This is not a long-run equilibrium because there is still profit to be made in the industry, so new firms will enter and increase the supply of Blu-ray movies, causing the price to decrease. In the long run, the price of Blu-ray movies will decrease to the point where the profit of each firm is zero (i.e., at the point where the price equals the minimum average total cost of production).

Explanation:

ABOVE

in 2017, the united states exported approximately $500 million of beef to mexico, and mexico exported approximately $500 million of beef to the united states. which of the following best explains this international supply chain?

Answers

If 2017, the United States exported approximately $500 million of beef to Mexico, and Mexico exported approximately $500 million of beef to the United States, the international supply chain that best explains this is United States and Mexican producers rely on each other’s market to sell certain beef products. Therefore, the correct option is C.

An International Supply Chain (ISC) is a supply chain that crosses national borders and incorporates suppliers and manufacturers from various countries. ISC is a complex, multidisciplinary concept that involves many components like legal, social, economic, and environmental factors. International supply chain management refers to the logistics, distribution, and procurement processes that enable goods and services to move from supplier to customer on a global scale.

The United States and Mexican producers rely on each other's market to sell certain beef products is the best explanation for the international supply chain that exists between these two nations. It means that both nations are selling and buying beef products from each other.

The given question falls under the category of international business, which deals with trade among various countries. In international trade, countries import and export goods and services to fill the gap between their supply and demand of goods and services. Therefore, the correct answer is option C.

Note: The question is incomplete. The complete question probably is: In 2017, the United States exported approximately $500 million of beef to Mexico, and Mexico exported approximately $500 million of beef to the United States. Which of the following best explains this international supply chain? A) United States consumers prefer to purchase specialty products made from beef raised in Mexico. B) Mexico depends on beef imports because domestic beef production is too low. C) United States and Mexican producers rely on each other’s market to sell certain beef products. D) The United States and Mexico have an agreement to evenly exchange beef products.

Learn more about Supply chain:

https://brainly.com/question/17517887

#SPJ11

A planned process designed to compile financial data and summarize the results in accounting records and reports.
A. accounting system
B. financial statement
C. business plan
D. net worth statement

Answers

A. accounting system

An accounting system is a structured method for gathering and organizing financial information, and presenting it in accounting records and reports for analysis, decision-making, and compliance purposes.

An organization or corporation that wants to assure accurate financial record-keeping and reporting builds an accounting system, which is a collection of procedures and controls. It entails compiling, documenting, categorizing, and summarising financial transactions and events in order to create accounting reports including balance sheets, income statements, and cash flow statements. The accounting system also offers information about the entity's financial performance and status, allowing management to make wise choices and potential investors to evaluate the organization's future. The size, kind, and nature of the firm will determine the complexity of the accounting systems, which can be either human or automated. An accounting system that is well-designed and maintained may increase productivity, decrease mistakes, and encourage responsibility.

learn more about accounting systems here:

https://brainly.com/question/16014012

#SPJ4

Which one of these would not be a factor in determining the reorder point? A. the EOQ B. the demand or usage rate. C. the variability of demand

Answers

The EOQ Economic order quantity would not be a factor in determining the reorder point

The amount of inventory a business should order to meet demand while lowering overall ordering, receiving, and holding costs is known as the economic order quantity (EOQ). The optimal circumstances for using the EOQ formula are those where demand, ordering, and holding costs are stable throughout time. The assumption that the demand for the company's products would remain steady over time is one of the largest constraints on the economic order quantity. Businesses determine their appropriate order size using economic order quantity (EOQ) calculations, which enables them to meet demand without going overboard. The goal of EOQ computation for inventory management is to reduce holding costs and excess inventory.

To learn more about EOQ Economic order quantity refer here:

https://brainly.com/question/30624294

#SPJ4

if the interest rate on a one-year loan is 5% and the expected inflation rate is −2% for the same period, what is the expected real interest rate on the loan?

Answers

In the following question, among the conditions given, If the interest rate on a one-year loan is 5% and the expected inflation rate is −2% for the same period, the Expected real interest rate on the loan is 7%.

With all the conditions given, Let i be the nominal interest rate and E be the expected inflation rate. The expected real interest rate (R) is given by the following formula;R = i - E

The nominal interest rate (i) is 5% and the expected inflation rate (E) is -2%.

Hence,R = i - ER = 5% - (-2%)R = 5% + 2%R = 7%

Therefore, the expected real interest rate on the loan is 7%.

For more such questions on interest

https://brainly.com/question/25845758

#SPJ11


refer to pengatlas map 2.4 (european union) and note those eu members that use the euro. note also pengatlas map 3.4 (top 10 and bottom 10 co untries by gdp) and compare it to map 2.4. which country that is part of the top 10 in gdp and is also part of the eu does not use the euro? what are the pros and cons of it having its own currency? in your opinion, if it were to adopt the euro, which would gain more- that country or those countries that currently use the euro?

Answers

The country that is part of the Top 10 in GDP and is also part of the EU, but does not use the Euro is the United Kingdom

The question refers to Peng Atlas Map 2.4 (European Union) and Map 3.4 (Top 10 and Bottom 10 Countries by GDP). From Map 2.4, the European Union members that use the Euro are Germany, Austria, Belgium, Cyprus, Estonia, Finland, France, Greece, Ireland, Italy, Latvia, Lithuania, Luxembourg, Malta, the Netherlands, Portugal, Slovakia, Slovenia and Spain.
The pros and cons of it having its own currency are that it allows the UK to set their own interest rates and monetary policies which can better suit their economic needs. This allows the UK to adjust their policies if needed to suit their economic goals and ambitions. On the downside, the UK will not benefit from the stability of the Euro and is exposed to more fluctuations in currency exchange rates.
In my opinion, if the UK were to adopt the Euro, it would be a mutually beneficial move for both the UK and those countries that currently use the Euro. The UK would benefit from the stability of the Euro, while the other countries would benefit from an increased pool of financial resources. This could potentially lead to a stronger, more stable, and prosperous European Union.

For more questions on GDP

https://brainly.com/question/834792

#SPJ11

ima broke is a customer that owes the company for credit sales and has declared bankruptcy. as a result, ima broke's subsidiary account receivable will be eliminated when .

Answers

"Ima Broke is a customer that owes the company for credit sales and has declared bankruptcy. As a result, IMA Broke's subsidiary account receivable will be eliminated when A write off is recorded by debiting allowance for doubtful accounts and crediting accounts receivable."

"IMA Broke" is a customer who owes the company money for credit sales and has declared bankruptcy, indicating that they cannot repay the debt. To account for this loss, the company will record a write-off, which involves debiting the "allowance for doubtful accounts" account and crediting the "accounts receivable" account related to IMA Broke's subsidiary account.

This write-off eliminates the subsidiary account receivable and reflects the loss in the company's financial records. The allowance for doubtful accounts account is used to estimate potential losses from customers who may not be able to pay their debts, and this write-off reduces the balance in that account.

This question should be provided as:

Ima Broke is a customer that owes the company for credit sales and has declared bankruptcy. As a result, Ima Broke's subsidiary account receivable will be eliminated when _____.

Learn more about bankruptcy https://brainly.com/question/26392690

#SPJ11

What option Rimilia provides to find all combination of transactions that make up the payment amount

Answers

The option provided by Rimilia to find all combinations of transactions that make up the payment amount is called "Auto-Matching".

What is Auto-Matching?

Auto-Matching is a feature in Rimilia's accounts receivable automation software that matches incoming payments to open invoices using artificial intelligence and machine learning.

It can analyze thousands of transactions in seconds, matching each payment to one or more invoices, and identifying any discrepancies.

With Auto-Matching, Rimilia can identify which combination of invoices, credit notes, and debit notes make up a payment amount. It can also automatically apply cash, identify underpayments or overpayments, and manage disputes or exceptions.

This helps to streamline the accounts receivable process and improve cash flow management for businesses.

Read more about account management here:

https://brainly.com/question/21597572

#SPJ1

The options are:

Cash

Debit cards

Mobile payments

Credit cards

internet banking

checks
auto matching

The spreadsheet NPV function actually calculates present value, not _________ present value, as the name suggests.

Answers

The spreadsheet NPV function actually calculates present value, not net present value, as the name suggests.

What is NPV Function in Microsoft Excel?

The NPV function in Microsoft Excel calculates the net present value of an investment by discounting a series of future cash flows to their present value, and subtracting the initial investment.

It takes into account the time value of money, allowing users to make better investment decisions. The function takes a range of cash flows and a discount rate as inputs and returns the net present value of the investment.

To calculate the net present value using the NPV function, the initial investment or cash outflow needs to be included as the first value in the range of cash flows.

Learn more about NPV function:
https://brainly.com/question/27986155
#SPJ1

stripped bonds are bonds whose cash flows have been transformed into a security representing the principal payment only and a security representing interest payments only. a. true b. false

Answers

The statement "Stripped bonds are bonds whose cash flows have been transformed into a security representing the principal payment only and a security representing interest payments only" is True.

Stripped bonds, also known as stripped coupon bonds or zero-coupon bonds, are bonds that have had their coupon payments (the interest payment) separated from the principal repayment.

Stripped bonds have several advantages over other types of fixed-income securities.

One of the most significant benefits is that they are more liquid than regular bonds, which can be difficult to trade due to their large size and complexity.

They also offer a higher degree of flexibility, allowing investors to tailor their investment portfolios to meet their specific needs.

Stripped bonds provide a more predictable income stream than other types of fixed-income securities, making them ideal for risk-averse investors.

Therefore, the statement is true.

Learn more about Stripped bonds here:

https://brainly.com/question/30087675

#SPJ11

Alberto plans to apply for a car loan. When should he check his credit report?
a) 1 week before applying for the loan
b) 1 month before applying for the loan
c) Around 3 to 6 months before applying for the loan
d) He does not need to check his credit report

Answers

Alberto plans to apply for a car loan. It is ideal to check his credit report around 3 to 6 months before applying for the loan option (c) . This will allow him enough time to identify and fix any errors, dispute any inaccuracies, and take steps to improve his credit score, if necessary.

A credit report is a record of your borrowing history, including loans, credit cards, and other forms of credit. Credit reports contain information about the amount you owe and how you repay your debts, as well as other financial information that may influence your ability to receive credit. Your credit report is an essential component of your credit score, which is a measure of your creditworthiness. Credit scores are used by lenders to determine whether to grant you credit, and at what interest rate.

A credit report contains several key components, including the following: Personal Information: This includes your name, address, social security number, and other identifying information. Creditors use this information to verify your identity and ensure that your credit history is accurate. Credit History: This section contains a list of your current and past credit accounts, including credit cards, mortgages, car loans, and other forms of credit. This section also includes information about the amount you owe, your payment history, and any delinquent accounts.

Public Records: This section includes any public records associated with your credit history, including bankruptcies, tax liens, and judgments. Inquiries: This section contains a list of companies or individuals who have requested a copy of your credit report. Hard inquiries can negatively impact your credit score, so it is important to limit the number of inquiries you have on your credit report. Improving your credit score requires a long-term commitment to responsible credit behavior. Some tips for improving your credit score include the following:

Pay your bills on time. Late payments can have a significant negative impact on your credit score. Keep your credit card balances low. High balances can also negatively impact your credit score. Don't close unused credit accounts. This can lower your credit utilization ratio, which is a key component of your credit score. Review your credit report regularly. Identify and dispute any errors or inaccuracies, and take steps to improve your credit score over time.

Thus option (c) is correct.

For more such questions on credit report

https://brainly.com/question/30239492

#SPJ11

Identify a true statement about how the growing power of the Republican Party in Texas has affected the executive branch of Texas government.
A. It has weakened the executive branch because Republican candidates who are elected to statewide executive offices openly challenge long-serving Democrats holding other executive offices.
B. It has weakened the executive branch by increasing differences in the plural executive because Republican candidates elected to executive offices tend to be moralistic conservatives who tend to turn off traditional and individualistic conservative voters.
C. It has strengthened the executive branch by virtually eliminating divisions in the plural executive because Republican nominees who emerge from the primaries for statewide offices are mostly in agreement on what policies they want to pursue.
D. It has strengthened the executive branch because Republican legislators are liberal conservatives who respect the Governor's authority and follow his or her agenda.

Answers

Option C is a true statement about how the growing power of the Republican Party in Texas has affected the executive branch of Texas government.

The growing power of the Republican Party in Texas has affected the executive branch of Texas government by strengthening it. It has done this by virtually eliminating divisions in the plural executive because Republican nominees who emerge from the primaries for statewide offices are mostly in agreement on what policies they want to pursue. So, the correct option is C.The growing power of the Republican Party in Texas has impacted Texas’s governance, and the executive branch, in particular. Since Texas is the largest Republican-controlled state in the United States, the Republican Party has had significant power and has established its policy and agenda in the state.The Republican Party in Texas has increased in strength and has expanded its hold over executive branch offices. The party has ensured that Republicans occupy all major executive offices in Texas. This consolidation of power has helped to strengthen the executive branch because there is no opposition or conflict among the key players.The growing power of the Republican Party in Texas has resulted in the strengthening of the executive branch, as there is less opposition from other branches of government. The party has successfully aligned its key players to pursue a unified agenda, which helps the executive branch to function more efficiently. The Republican Party has virtually eliminated any division among the executive branch by establishing a united front.

for more questions on Republican Party

https://brainly.com/question/25360920

#SPJ11

(a) what is the consumer surplus at a price of $6.15 per item? (b) what is the consumer expenditure at a price of $6.15 per item? (c) what is the consumer willingness and ability to spend at a price of $6.15 per item? (d) how many items are demanded at a price of $6.15?

Answers

The consumer surplus at a price of $6.15 per item is the difference between the maximum willingness to pay and the actual price paid by the consumer.

(A) This difference is represented by the area below the demand curve and above the price of $6.15.Thus, the consumer surplus at this price is the area of the triangle above the price of $6.15, below the demand curve, and to the left of the quantity demanded at this price.

(b) The consumer expenditure at a price of $6.15 per item is the actual amount of money spent by consumers to purchase the quantity of the item they demand at this price. To determine this expenditure, multiply the quantity demanded at this price by the price itself. Thus, the consumer expenditure at this price is the product of the price of $6.15 and the quantity demanded at this price.

(c) The consumer willingness and ability to spend at a price of $6.15 per item is represented by the quantity demanded at this price. The willingness to spend refers to the maximum amount that consumers are willing to pay for the item, while the ability to spend refers to the actual amount they can afford. At a price of $6.15 per item, the quantity demanded represents the amount of the item that consumers are both willing and able to purchase at this price.

(d) The quantity demanded at a price of $6.15 per item is determined by the point on the demand curve that corresponds to this price. To find this quantity, we locate the price of $6.15 on the vertical axis and trace a horizontal line to the demand curve. The point where this line intersects the demand curve gives us the quantity demanded at this price. Thus, the number of items demanded at a price of $6.15 is given by the horizontal distance between the origin and this point on the demand curve.

Learn more about consumer surplus https://brainly.com/question/13573671

#SPJ11

Aragon and Associates has found from past experience that 25% of its services are for cash. The remaining 75% are on credit. An aging schedule for accounts receivable reveals the following pattern:

Answers

Cash Budget Aragon and Associates have found from past experience that 25% of its services are for cash. The remaining 75% are on credit. An aging schedule for accounts receivable reveals the following patterns sixty percent of fees on credit are collected in the month following service.

Aragon and Associates is a business that must prepare a cash budget to ensure that they have enough cash on hand to meet its obligations as they become due. To do this, they need to understand their cash inflows from sales.

Based on past experience, they know that 25% of their services are for cash and the remaining 75% are for credit. An aging schedule for accounts receivable reveals that 10% of fees on credit are collected in the month that service is rendered, 60% in the following month, 26% in the second month following service, and 4% are never collected.

Any fees that are not paid until the second month are subject to a 3% late charge. By analyzing this information, Aragon and Associates can prepare a schedule of cash receipts that outlines the expected timing and amount of cash inflows from credit sales. This allows them to manage their cash flow effectively and operate their business efficiently.

To learn more about cash budget

https://brainly.com/question/15310092

#SPJ4

Complete question:

Cash Budget Aragon and Associates have found from past experience that 25% of its services are for cash. The remaining 75% are on credit. An aging schedule for accounts receivable reveals the following patterns a. Ten percent of fees on credit are collected in the month that service is rendered b. Sixty percent of fees on credit are collected in the month following service. c. Twenty-six percent of fees on credit are collected in the second month following service d. Four percent of fees on credit are never collected.

If Home is capital abundant, then when it begins to freely trade with the rest of the world, the return to capital in Home should _________ and the real wage in Home should _______.A. fall; riseB. fall; fallC. rise; riseD. rise; fall

Answers

If Home is capital abundant, then when it begins to freely trade with the rest of the world, the return to capital in Home should fall and the real wage in Home should rise. The correct answer is A.

What is Home is capital abundant?

The statement "Home is capital abundant" means that Home has an abundance of capital. Capital in economics refers to the money or goods used to generate wealth. When it comes to trade, countries tend to export goods that they have in abundance, while importing goods they lack in their own country.

In economics, returns to capital represent the amount of profit or return earned by capital when it is invested in a business or any other activity that generates income. The real wage, on the other hand, refers to the wage or salary a worker receives that accounts for the level of inflation in the economy.

When a capital-abundant country begins trading with the rest of the world, there will be an increase in the exportation of capital-intensive goods, as these types of goods are available in abundance in the country. As a result, there will be an increase in the return to capital in the country since more capital will be invested in the production of capital-intensive goods.

The increase in capital investment will cause the real wage in the country to rise since there will be an increase in the demand for labor. As more capital is invested, more workers will be required to work in the production process. The correct answer is A.

Learn more about Home is capital abundant here:

brainly.com/question/30528728

#SPJ11

Other Questions
at most, how many references in the above line could be null and might cause the nullpointerexception to be thrown? The neck of a gifaffe is 4 1/2 feet in length. Its neck is 30 perocent of it height whats the higet of the giffae during bypass surgery that is used as a treatment for severe obesity, surgeons seal off or remove part of the stomach. the remaining stomach then produces: determine the ror for a project that has an initial cost of $82,000 and would provide positive cash flows of $12,000 the first year, $14,000 the second year, $16,000 the third year, $18,000 the fourth year, $20,000 the fifth year, and $22,000 the sixth year. the price elasticity of demand for dvd players manufactured by sony of japan is greater than one. if the japanese yen appreciates against the u.s. dollar by 10% and the price of the sony dvd players in the u.s also rises by 10%, then other things equal, the total dollar sales revenues of sony dvds would: A test consists of 30 multiple choice questions, each with five possible answers, only one of which is correct. find the mean and the standard deviation of the number of correct answers. round the answers to the nearest hundredth. Solve the following proportion for y. 13 11 8 y Round your answer to the nearest tenth. 1 X When contrasting progressive country and mainstream country, which of the following is not true?progressive country artists were more polished than mainstream country artists Given the mtually couple network below write the coupling equations if terms of (a) and then in (b). (a) valt) and vy(t) (b) velt) and valt) M ij(t) i(t) + + 0 (0) 0 (0) L L (D) 0 (0) + + what are the two types of costs associated with inventory? Preparing and Writing the Reviewhis preparation stage is vital to the writing of a successful review.Here is your goal for this assignment:Compose an outline for a critical review of In His StepsUsing the following steps, prepare notes and an outline for your critical review.Review characters, plot, and setting in In His Steps. Make notes.Write your review of characters, plot, and setting in the form of notes. Think about the strengths and weaknesses of each.Search the novel for strengths in technique. Again make notes. Pay attention to strong or weak character development, strong or weak plot, how setting helps character development and action or overpowers them.As a Christian, make notes on whether you can find a strong Christian interpretation. What is good and/or what is lacking?Write your outline.Now that you have completed the prewriting and planning stage of your review, you are ready to begin writing.Here is your goal for this assignment:Compose a critical reviewFollow carefully the instructions given below.What will you specifically review in In His Steps?Write out the thesis statement for your review. Before you move on to the next step, submit your thesis to your teacher, who will check to see if it is manageable and return it to you.Review the outline you prepared in the planning stage. Review any feedback you received on the outline and your notes, and revise your outline accordingly. Submit your revised outline with your critical book review.Write your critical book review according to your outline. You must deal with character, plot, setting, and technique. Your review should be at least 500 words long.You will be graded on the following criteria:Clearly state your thesis and support it with evidence from the text. Use at least three specific quotes. Remember to document your quotes properly, using MLA format (click here to review the Style Guide).Make sure your outline organizes your thinking for the main points and structure of your review.Make sure each paragraph contains one main idea and supporting details. Use complete sentences including compound and complex sentences.Include an introductory paragraph, proper transitions, and an appropriate conclusion.Make sure your essay contains no errors in conventions such as spelling or grammatical errors, and is at least 500 words long. Zach, whose mass is 80 kg, is in an elevator descending at 10 m/s.The elevator takes 3.0s to brake to a stop at the first floor.a. What is Zach's apparent weight before the elevator startsbraking ?b. What is Zach's apparent wight while the elevator is braking?a precise and step by step solution will help me understandthe problem.. thank you.. For each of the following find:I. lim f (x) as x approaches a from the negativeII. lim f (x) as x approaches a from the positiveIII. lim f (x) as x approaches aa. f(x)={ sin x/3, if x< or equal to pi a=pi { x(root3)/(2pi), if x>pib. f(x)= (x^2-36)/root(x^2-12x+36) a=6 Calculate the mass of sodium chloride required to prepare a 100cm^3 of 1.00 mol dm^-3 sodium chloride solution.( The molar mass of sodium Chloride is 58.5gmol^-1) what is the name for the proposed train in a tube featured in this weeks travel series salesforce recruitment and selection, training, and motivation and compensation are all part of the Prior to ECMAScript 5, what would happen if you declared a variable named firstName and then later refered to it as firstname?a. Firstname would be treated as a new local variableb. Firstname would be treated as a new global variablec.The JavaScript engine would throw an arrord. The JavaScript enggine would automatically correct the error Which of these tactics did Martin Luther King Jr. and Southern Christian Leadership Conference use most effectively in their struggle to win equal rights for African Americans?armed rebelionaffirmative actionnonviolent resistancereverse discrimination who performed an experiment with a cathode ray tube and discovered the existence of negatively charged particles within the atom? the work style changes that occurred as factory production transformed the american economy included: