Answer:
FDI
Explanation:
Foreign direct investment (FDI) is an investment from a party in one country into a business or corporation in another country with the intention of establishing a lasting interest. Lasting interest differentiates FDI from foreign portfolio investments, where investors passively hold securities from a foreign country. A foreign direct investment can be made by obtaining a lasting interest or by expanding one’s business into a foreign country.
Answer:
6.92 years
Explanation:
The payback period measures how long it takes for the amount invested in a project to be recovered.
The total cost of the project is $388,000.
Because the project generates no cash flow in the first and second year , the amount recovered would be 0.
In the third year, the amount recovered of $388,000 is $69,000. This reduces the cost of the project to $319,000.
In the fourth year , the amount recovered is $88,000. This reduces the cost of the project to $231,000.
In the fifth year, the amount recovered is $102,000. This reduces the cost of the project to $129,000.
In the sixth year, the amount recovered is $140,000. This covers the cost of the project and generates a profit of $11,000.
The amount is recovered in the 6th year + 129000/ 140,000 = 6.92 years
I hope my answer helps you
Answer:
$3,770.53
Explanation:
Given data;
Amount Hailey invested = $2,100
annual interest rate = 8 Percent for 30 years ending 20 years from now
Aidan can make an investment for 20 years at 9 percent.
To determine how much money Aidan should invest in order to have the same amount of money in 20 years as Hailey =
First, is to determine how much Hailey will have 20 years from now:
FV20 = PV -10 × (1 + i)³⁰
FV20 = $2,100 × (1 + 0.08)³⁰
= $2,100 × 10.06266
= $21,131.59
Therefore, Aidan will have to deposit:
PV = FV20 ÷ (1 + i)N
PV = $21,131.59 ÷ (1 + 0.09)²⁰
= $21,131.59 ÷ 5.60441
= $3,770.53
Answer:
1500
Explanation:
Breakeven point is the number of units produced and sold where net income is art on it is where revenue equals cost.
The formula for calculating break even points = F / (P - V)
F = fixed cost
P = price
V = variable cost per unit
$270,000 / ($600 - $420) = 1500
I hope my answer helps you
Answer:
$22,500
Explanation:
Activity based costing (ABC) is a method of cast allocation where the overheads and other indirect costs are allocated to products and services based on the volume of different activities consumed by each product.
The total cost pool is divided by the defined cost drivers to determine the cost driver rate.
Titanium Hours Aluminium hours Cost
Assembly 500 500 1000 45000
Inspection 350 150 500 75000
Labor hours 2100 1900 4000 120000
Cost per labor hour = 120000/4000= 30
Using activity based costing , portion of the assembly cost assigned to titanium Racquets = Titanium assembly hours / total assembly hours * total assembly cost
500/1000*45000
=22,500
Answer:
The project should be rejected because the costs are larger than the benefits.
Explanation:
EAW = equivalent annual worth = equivalent annual benefit - equivalent annual cost
equivalent annual cost = ($6,150,000 x 12%) + $115,000 = $853,000
equivalent annual benefit = $775,000
EAW = $775,000 - $853,000 = -$78,000
since the EAW is negative, then the project should not be carried out.
Another way to calculate this is by dividing benefits by costs. If the answer is 1 or higher, then the project should be accepted:
B/C = $775,000 / $853,000 = 0.9086 ≤ 1, project rejected
Answer:
Each firm sets it price equal to its average total cost.
Explanation:
In economic theory, perfect competition is a market with a large number of sellers and buyers, producing similar products and having a small market share that does not affect prices. Let's explain the characteristics of the perfect competition :
1) manufacturers of identical products. . .
Products in the perfect competitive market are completely substitute. In other words, products and services offered by vendors do not differ from one another in terms of quality or character.. . .
2) the firm has a small market share that will not affect prices. . .
No vendor in this market has the ability to influence prices by increasing or decreasing production. Also, no buyer can reduce the supply of goods and lead to lower prices
3)Market where there are many buyers and sellers. . .
The above feature is directly related to this. Thus, if there is a seller or buyer in the market (such as monopoly or monopsony), it can easily affect the market price. However, in perfect competition, every seller and buyer must act based on market prices.
4)There is no obstacle to entering and leaving the market. . .
That is, access to the market is extremely easy and at the same time neither the state nor the old market participants have a barrier for the new participant.
5)Perfect information. . .
Every market participant knows the prices, quality and production methods.
6) Zero transaction costs...
Buyers and sellers do not bear any transaction costs (contract costs, etc.) during the purchase of goods and services. . .
7) Maximizing profits. . .
In a highly competitive market, the main purpose of firms is to maximize their profits, without any serious obstacles. In a fully competitive market, maximum profits are earned when marginal costs are equal to marginal revenue.
As you see there is information above about the easy entry and exit, the identical products and maximizing profits but nothing about the equal prices to average costs.