Answer:
$2.82
Explanation:
The CPI is the measure of the average changes in prices of consumer goods and services. The CPI compares current prices and prices at the base year.
CPI is expressed as a percentage. It represents the cost of goods in a given year divided by the cost of goods in the base year multiplied by 100.
In 1970, the movie price was $0.50, and CPI was 38.8%
in 2011, CPI was 218.8%; the movie price will be?
in 1970: $0.50 =38.8%
in 2011: ? = 218.8%
?= 218.8/38.8 x $0.50
?=5.6392 x 0.50
=$2.81896
=$2.82
b.backward integration.
c.forward integration.
d.horizontal acquisitions.
Answer:
a. unrelated diversification.
Explanation:
Unrelated diversification -
According to this concept , any company or any business , which can have very high financial condition and high revenues , is favorable for diversification , is referred to as unrelated diversification .
From the scenario of the question,
As there is significant reduction in the demand of watches , and therefore , the company is thinking to develop some products other than watches , to maintain the profit and demand of the product .
Hence , the correct option is a. unrelated diversification .
B. At a required return of 28 percent, what is the NPV of the project?
C. At what discount rate would you be indifferent between accepting the project and rejecting it?
Answer:
A. $8,187.17
B. $597.38
C. 30%
Explanation:
Calculate the Net Present Value of the Project at the Required Return of 9%
The following is the calculation of NPV using a financial calculator :
($8,000) CFj
$2,700 CFj
$2,700 CFj
$2,700 CFj
$2,700 CFj
$2,700 CFj
$2,700 CFj
$2,700 CFj
$2,700 CFj
$2,700 CFj
9.00 % i/yr
Shift NPV $8.187.1666 or $8,187.17
Calculate the Net Present Value of the Project at the Required Return of 9%
The following is the calculation of NPV using a financial calculator :
($8,000) CFj
$2,700 CFj
$2,700 CFj
$2,700 CFj
$2,700 CFj
$2,700 CFj
$2,700 CFj
$2,700 CFj
$2,700 CFj
$2,700 CFj
28.00 % i/yr
Shift NPV $597.3765 or $597.38
You will be indifferent between accepting the project and rejecting it at the internal rate of return. The Internal Rate of Return is the interest rate that makes the Present Vale of Cash Flows to equal the Initial Cost of the Investment.
Use the Data given to find the Internal Rate of Return :
($8,000) CFj
$2,700 CFj
$2,700 CFj
$2,700 CFj
$2,700 CFj
$2,700 CFj
$2,700 CFj
$2,700 CFj
$2,700 CFj
$2,700 CFj
Shift IRR 30%
Answer:
Yes, Kevin has an enforceable security interest
Explanation:
Judging from the perception of simple contract, which is a legally binding contract on parties that have entered into it,for the contract to be legally enforceable the following conditions must be met.
There must be an agreement between parties involved,this is demonstrated by Kevin offering to loan Francine $1500, which was met the latter's acceptance.
Consideration is when both parties promises to give something of value in exchange for value received, which is also satisfied in this case,as Francine promises to return $1500 in exchange for same amount borrowed and by extension Kevin has right to repossess the cart.
Lastly, both parties intended to create legally enforceable relations as well the fact that they are both capable (of age) and the transaction entered is legal in law parlance.
In conclusion, the above points show that Kevin has an enforceable security interest.
Answer:
present worth A: 513,821.51
present worth B: 431,013.1
We should choose option B as the present worth is lower.
the IRR cannot be calculated when all teh cashflow are negative as it the rate which makes the present value equal to zero. that means it will discount either the negative or postive subsequent cashflow to match an initial of the opposite sign.
Explanation:
For the intenal rate of return we must look for which rate makes the cost equal to zero.
For the opportunity cost, we solve for the present value of eahc discounted at the given rate of 9%
Method A
discount rate 0.09
# Cashflow Discounted
0 300000 300000
1 66000 60550.46
2 66000 55550.88
3 66000 50964.11
4 66000 46756.06
NPV 513821.51
Method B
# Cashflow Discounted
0 120000 120000
1 96000 88073.39
2 96000 80801.28
3 96000 74129.61
4 96000 68008.82
NPV 431013.1
Answer:
There was no significant relationship
Explanation:
From the result of the data analysis, it can be concluded that Graduate Record Examination (GRE) does not have any relationship with the performance of all graduate students in Electrical Engineering Master's Programs and an increase in GRE score can not lead to an increase in GPA of the students.
Answer:
No
Explanation:
The new packaging did not improve the product itself.
According to the VRIO framework, in order for the packaging to be a valuable resource it has to enable the company to exploit opportunities or defend against threats, it also needs to help organizations to increase the perceived customer value by increasing differentiation or/and decreasing the cost of the product. If the resources do not meet this condition, it can lead to competitive disadvantage.