37: a firm must decide which of 3 alternatives to adopt to expand its capacity. the firm wishes a minimum annual profit of 20% of the initial cost of each separable increment of investment. any money not invested in capacity expansion can be invested elsewhere for an annual yield of 20% of initial cost. your reasoning must include the ∆irr for each challenger-defender comparison.

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Answer 1

As the firm requires a 20% profit on each increment of investment, we should examine the B- A increment of $200,000. (With only a 16% profit rate, C is unacceptable.)

Alt. Initial Cost   Annual Profit   Change in Cost     Change in Profit   Change in Profit Rate

A    $100,000         $30,000

B    $300,000         $66,000              $200,000            $36,000               18%

C   $500,000          $80,000

With the alternative A it produces a 30% profit rate. The $200,000 increment of investment of B rather than A, that is, B- A, yield an 18% profit rate and is not acceptable. Thus it means Alternative B with an overall 22% profit rate can be considered as made up of Alternative A plus the B- A increment. Because the B-A increment is not acceptable, Alternative B should not be adopted.

Therefore the best investment of $300,000, for instance, would be Alternative A (annual profit = $30,000) plus $200,000 elsewhere (which is yielding 20% or $40,000 annually). At this combination firm yields a $70,000 profit, which is better than Alternative B profit of $66,000.


Related Questions

The first question you ask is: "gearup has several offices located around the country. what kinds of networks will gearup need to implement and/or support in this scenario?" which answer must applicants give in order to move on to the next interview?

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You decided that the interviewees should answer, Borh WAN and LAN. This was the correct answer because the LAN or Local Area Network devices permit corporation computers to join with one another, with printers and copiers, and with the Internet. While WAN or Wide Area Network devices links the computer from site to site since GearUp has headquarters in several sites.

The condition that exists when quantity supplied exceeds quantity demanded is known as

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The answer in the given statement provided above excess supply as this pertains to supplies of having to exceed the demand quality where as the excess demand is when the demand was able to exceed with quality of the supply.

Dma corporation has bonds on the market with 16.5 years to maturity, a ytm of 7.7 percent, and a current price of $1,065. the bonds make semiannual payments and have a par value of $1,000. what must the coupon rate be on these bonds?

Answers

With face value equal to $ 1000, present value equal to $ 1,065, we get nper = 16.5 * 2 = 33. Rate(ytm) is equal to 7.7%/2 = 3.85%.PMT (coupon payment)  = $ 42.01.Coupon rate = (42.01 / 1000) = 4.20%.Therefore, the annual coupon rate is equal to 4.2 * 2 which equates to 8.40%

The coupon rate of DMA Corporation's bonds can be calculated using the present value of an annuity formula, factoring in the current bond price, yield to maturity (YTM), and the number of periods until maturity. By solving for the coupon payment and converting it into an annual rate, we attain the coupon rate for the bonds, which are making semiannual payments.

To calculate the coupon rate of DMA Corporation's bonds, we need to use the present value of an annuity formula, since the bonds make semiannual payments. The bond's current price, maturity, yield to maturity (YTM), and par value are essential variables for computing the coupon rate. We can use the formula for calculating the present value of an annuity to determine the coupon payments that equate to the current bond price when discounted at the bond's YTM.

The formula to apply here, considering semiannual payments, would be:

Current Bond Price = (Coupon Payment / YTM per period) * (1 - (1 + YTM per period)^(-Number of periods)) + (Par Value / (1 + YTM per period)^(Number of periods))

Where:

Current Bond Price = $1,065

Par Value = $1,000

YTM per period = 7.7% / 2 = 3.85%

Number of periods = 16.5 years * 2 = 33 periods

By substituting these values into the formula and solving for the Coupon Payment, we can determine the coupon rate by multiplying the annual total coupon payment by 100 and then dividing by the par value of the bond.

Once we calculate the semiannual Coupon Payment, the coupon rate would be twice that amount (because it's semiannual) divided by the Par Value, and then multiplied by 100% to get the percentage rate.

This calculation requires solving a present value formula, which often requires financial calculator or spreadsheet software for iterative solving, as it cannot be isolated algebraically for the coupon payment directly. The result gives us the coupon rate that makes the present value of the bond's future cash flows equal to its current market price.

In double-entry accounting, where should you record money that is leaving your company to pay bills? A. In the debits column B. In the credits column C. In the asset column D. In the cash flow column

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B. In the credits column

Answer:

B. In the credits column.

Ted wanted to determine if one brand of paper towels​ (brand
a.was stronger than another brand​ (brand b). he performed a study where he randomly selected 25 sheets from each of the two​ brands,

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What is the question mate?

A company just paid a dividend of $2.87 per share. the dividend is expected to grow at 25 percent per year for the next five years. thereafter, the dividend growth rate is expected to be 6 percent per year into the foreseeable future. calculate the dividend expected to be paid 8 years from today ( that is, at t = 8).

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At year 0, Dividend per share is $ 2.87

At year 1, Dividend per share is Div prev year * 1.25 or 2.87 * 1.25 = 3.5875

At year 2, Dividend per share is 3.5875 * 1.25 = 4.4844

At year 3, Dividend per share is = 4.4844 * 1.25 = 5.6055

At year 4, Dividend per share is = 5.6055 * 1.25 = 7.0068

At year 5, Dividend per share is = 7.0068 * 1.25 = 8.7585

At year 6, Dividend per share is = 8.7585 * 1.06 = 9.2841

At year 7, Dividend per share is = 9.2841 * 1.06 = 9.8411

At year 8, Dividend per share is = 99.8411 * 1.06 = 10.4316

Or using the equation D8 = 2.87*(1.25)^5 * 1.06^3 = 10.4316

 

Answer is 10.4316

What three steps are required for calcareous ooze to exist below the ccd?

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For a calcareous ooze to exist below the CCD, the following requirements must be fulfilled:
1. The calcite shells must be deposited above the CCD.
2. The shells must be covered by a non calcareous material.
3. The movement of the sea floor over a long period of time.
CCD stands for Calcite Compensation Depth and it is the ocean depth below which calcite is unstable and will dissolve quickly.

If will's print shop competes in a perfectly competitive market and he charges $10 per printing job, what is the marginal revenue of his 3rd print job?

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In a perfectly competitive market, where there are no constraints on prices or who is able to purchase, the marginal revenue is equal to the amount of revenue earned by each job. In this case, that would be the $10 he would earn for the 3rd (and subsequent) print jobs.

Marketing manager joe driscoll stated that the company believes that all brands and product categories can be​ reinvigorated, actively using cross promotions during the latter stages of​ __________.

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Marketing Manager Joe Driscoll stated that the company believes that all brands and product categories can be​ reinvigorated, actively using cross promotions during the latter stages of cross promotion. Cross promotion is a marketing techniques, in these two companies come for joint promotion of its products or service.

 

Marketing manager Joe Driscoll stated that the company believes that all brands and product categories cab be reinvigorated actively using cross promotions during the latter stages of product decline.

In a product life cycle, product goes with different stages like introduction, growth, maturity and decline. Product or brand having same life cycle, brand or product can be energized by using cross promote on marketing technique.

 

Answer;

The product life cycle

-Marketing manager joe driscoll stated that the company believes that all brands and product categories can be​ reinvigorated, actively using cross promotions during the latter stages of the product life cycle.

Explanation;

-Product life cycle is a sequence of stages through which a new product progresses from its introduction to growth, maturity and the decline stage.

-These stages are associated with changes in the marketing situation, thus impacting marketing strategy and the marketing mix.

Increased availability of technology in my classroom makes it easier for peer feedback activities to be conducted anonymously which "may create a social context where learners feel freer to express varied ideas, and make the task of giving feedback less inhibited" (howard, barrett, & frick, 2010, p. 90). however, i worry that my students may be overly harsh if they don't have to stand by their comments.

Answers

In my opinion this statement or the student version of this statement that they based on the book of "Howard, C. D., Barrett, A. F., & Frick, T. W. (2010). Anonymity topromote peer feedback: Pre-service teachers' comments inasynchronous computer-mediated communication" is not PLAGIARISM. They just depend on this book regarding the word they will used.
Final answer:

While increased technology usage in the classroom enhances anonymous peer feedback activities, there are concerns about overly harsh comments. This can be mitigated by establishing ground rules, implementing a moderation system, and engaging in regular discussions about appropriate feedback etiquette.

Explanation:

Incorporating technology into the classroom indeed enhances peer feedback activities by providing anonymity, which could stimulate creativity and open dialogue among students. Nonetheless, there is the risk of potential misuse where students may use this as a platform to give overly harsh critiques. To manage this, it is essential to establish ground rules and cultural norms around peer evaluation. This includes instructing students on how to provide constructive, respectful, and valuable feedback. Additionally, you might consider implementing a moderation system in which all comments are reviewed before being sent to the recipient, ensuring that they adhere to the set standards. Additionally, regular open discussions about the importance and etiquette of proper feedback could be beneficial to underscore the objectives of these activities.

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Calculate the midpoint price elasticity of demand between 80,000 and 100,000

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Mid-point is the middle of the two endpoints.

80,000 and 100,000 is your end point, to get mid-point, add the two numbers together and divide by two

or (x + y)/2

IN this case, (80,000 + 100,000)/2

your answer is 90,000

hope this helps

_____ represent every segment of global society and have many ways to restrict business, including boycotts, lawsuits, picket lines, media campaigns, and lobbying for more regulation. social interest groups governments markets economic stakeholders

Answers

Social interest groups represent these segments. These groups meet together due to the fact that they have the same interests in areas. They discuss what they want to do about their interest of choice and sometimes create events or raise money for specific causes. In other cases, they can be known for protests, boycotts, etc.

Question 1. use the above survey results to construct a 95% confidence interval for the proportion p of all ohio state university female students who would be willing to walk somewhere after dark that they would normally not go if they had a cell phone.

Answers

za/2 = invnorm(.975,0,1) = 1.96

confidence interval:

.42 +/- 1.96*square root of ((.42)(1-.42)/305)

.42 +/- .05539

(.42 - .05539, .42 + .05539

(.36461, .47539)

Lower bound: .365 (rounded to 3 decimals)

Upper bound: .475 (rounded to 3 decimals)

In order for ads to be effective, what is the first thing that they must do?
Offer reasons why the product is better than others.
Be seen and get the attention of consumers.
Get the consumer to visit a store.
None of the above.

Answers

For advertisements to be effective for companies to sell their products. Companies need their advertisement to (B) be seen and get the attention of consumers.

It is important for advertisements to grab the attention of the customers, since if it doesn’t, then the advertisement does not manage to its job well, and the product will not sell as much as they should. (B) should be the first thing an advertisement aims to do.

Answer:

The correct answer is letter "B": Be seen and get the attention of consumers.

Explanation:

Effective ads follow a set of requirements that include but are not limited to be unforgettable; coincide with customers and deliver a message that is personally meaningful; share how the product or service blends into the lives of customers; and, most importantly, be attractive and in plain sight so that anybody can see it.

Organizational development ____.
a. requires a steering committee
b. takes a short-term approach to change
c. is a philosophy and collection of planned change interventions
d. assumes that top management support is not necessary for change
e. is accurately described by all of these

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Organizational development  (OD) refers to a philosophy and collection of planned change interventions that takes a long-term approach to change and assumes that top management support is necessary for any change. It helps organizations and companies to succeed or improve by changing their strategies, policies, etc.

Answer: (c) Organizational development is a philosophy and collection of planned change interventions.

Vinny asks if he should force Spud to finish the job. Could Oscar get a court order requiring Spud to actually build the display?

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Vinny might be able to force the completion of the project. If the two had a written agreement that has not been violated or made conditionally null, then Spud could be legally obligated to complete the project, dependent on the interpretation of the contract by the court.

Geri is a minor. Without her parents’ knowledge, she signs a contract to buy an airline ticket to Hawaii for spring break. Geri’s parents are liable for

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Geri is a minor. Without her parents' knowledge, she signs a contract to buy an airline ticket to Hawaii for spring break. Geri's parents are liable for no part of the price of the ticket. This is because minors lack the legal capacity to make a contract.

When china's clothing industry expands, the increase in world supply lowers the world price of clothing. consider the effects this has on both an importer and an exporter of clothing. suppose the united states is an importer of clothing?

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The effect that China would cause is a worldwide fall in the price of clothing, and if the United States is importing clothing, that is, buying clothes from other countries (for example, China), this is only beneficial because cheaper foreign clothing can be purchased . However, for the companies that produce and sell clothes in the United States, and the world, this is bad, because the national product is not bought and also the costs must be lowered. A country that imports a lot of clothing can be seen benefiting at the level of stores and small businesses; but domestic garment factories, and clothing stores, see lost profits and stagnant products, causing a crisis in the US clothing industry, in this particular example.

You are considering two ways of financing a spring break vacation. you could put it on your credit​ card, at 17 % ​apr, compounded​ monthly, or borrow the money from your​ parents, who want an interest payment of 9 % every six months. which is the lower​ rate?

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Credit card has slightly lower interest rate. Let's take a look at both interest rates for 1 year and see what costs more. First, the credit card at 17% apr compounded monthly. Each month, 17%/12 interest will be taken. The total interest over the year will be (1 + 0.17/12)^12 = 1.183891728 times the original debt. Now let's look at the loan from the parents. Over 1 year, you'll be accumulating 2 interest payments. The formula for the year will be (1 + 0.09)^2 = 1.1881 Comparing the overall rate between the credit card and the parents, the credit card is slightly lower than the parents.

If the distinct keyword is not included in the avg function, the ____ keyword will be assumed.

Answers

The unique and group keyword will be assumed 
Final answer:

In SQL, when you use the AVG function without the DISTINCT keyword, the ALL keyword is implicitly assumed, meaning all values, including duplicates, are considered in the calculation of the average.

Explanation:

In SQL, when using the AVG function to calculate the average of a set of values, if the DISTINCT keyword is not included, the ALL keyword is implicitly assumed. The ALL keyword means that all values, including duplicates, will be used in the calculation of the average. With DISTINCT, on the other hand, duplicates are ignored, and every unique value is counted only once when calculating the average.

For example, if you have the values {3, 3, 4, 5}, the AVG with DISTINCT would be 4, because it would only consider unique values (3, 4, 5). Without DISTINCT, the ALL keyword would be implied, and the average would be 3.75, because it would consider all values, including the duplicated 3.

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Colorado Traffic laws are revised each year by

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The correct answer is:  C) Colorado General Assembly revises Colorado traffic laws annually, demonstrating state-level legislative authority over traffic regulations.

Colorado traffic laws are annually revised by the Colorado General Assembly, the state's legislative body.

The Colorado General Assembly consists of two chambers: the House of Representatives and the Senate.

Members of the General Assembly, including state representatives and senators, propose, debate, and vote on changes to traffic laws.

Proposed revisions to traffic laws are typically introduced as bills in either chamber of the General Assembly.

Committees within the General Assembly review and amend proposed bills before they are presented for consideration by the full chamber.

Once approved by both chambers of the General Assembly, revised traffic laws are sent to the Governor for approval.

Upon the Governor's signature, revised traffic laws become enacted and enforceable within the state of Colorado.

The revision process ensures that traffic laws are periodically updated to reflect changing circumstances, technologies, and societal needs.

Colorado traffic laws are revised each year by ?

A ) department highway administration

B) u.s department of transportation

C) colorado general assembly

D) state representative from the various Colorado state congressional district

E) none of the above

According to the law of demand, the higher the price of an assigned textbook, the _______________ the quantity demanded of assigned textbooks will be, ceteris paribus, and the ______________ likely students will seek out an alternative to the assigned textbook.

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The higher the price of an assigned textbook, the less the quantity demanded of assigned textbooks will be, ceteris paribus, and the more likely students will seek out an alternative to the assigned textbook. In other words, a product or service will sell a higher quantity and be more in demand if the price is lowered. If a product or service has a price that becomes too high, the quantity will not be in demand as much and it will sell less. One thing to keep in mind is equality, the products or services being sold must be equal in everything but price for the law of demand to remain true.
Final answer:

According to the law of demand, the higher the price of an assigned textbook, the lower the quantity demanded will be, and the more likely students will seek out alternatives.

Explanation:

According to the law of demand in economics, when the price of an assigned textbook increases, the quantity demanded of assigned textbooks will decrease, ceteris paribus. This means that as the price goes up, students will want to buy fewer textbooks.

Additionally, as the price of the assigned textbook increases, it is more likely that students will seek out an alternative to the assigned textbook. This could be borrowing the textbook from a friend, finding free online resources, or using different study materials.

For example, if the price of an assigned textbook for a course increases from $50 to $100, the quantity demanded of the textbook may decrease from 100 units to 50 units, and more students may consider looking for alternative options.

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Several large banks manipulated the reported rates on which key money market rate?

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The answer is the key money market rate to which several banks manipulated the reported rates is "LIBOR".
LIBOR stands for London Inter Bank Offered Rate, and it is the benchmark rate that several large  banks in the world charge after the loans that are short terms and LIBOR is also known as ICE LIBOR (Intercontinental Exchange London Inter bank Offered Rate, previously it is known as BBA LIBOR (British Bankers Association LIBOR). 

The secretary of state can compel involuntary dissolution when a corporation:

Answers

no such power exists constitutionally

What is meant by "you can't manage what you don't measure." what are the key differences between "big data" and "analystics"? what did the airline do to improve etas? what did sears do to improve personalized promotions? what is a hippo? what must executives who want to lead a big data transition do? what are the five management challenges?

Answers

The popular phrase "you can't manage what you don't measure" points to the truth that a manager must know what his division is doing in order to properly guide and administer it. In the case of Southwest Airlines, estimated time of arrival (ETA) was improved by streamlining processes from aircraft maintenance to guest service. Sears improved personalized promotions by using data to identify important customer behaviors. In all of these examples, executives had to examine large data sets or "big data" and review the analysis to make decisions based on "analystics."

Manufacturers begin building a new plant in arizona. which determinant of aggregate demand causes the change?

Answers

Investment spending will lead to the change. Investment, in this case, is any sort of spending in capital that will further a business's goals, such as in a new building or new machines as part of that building. The increased investment will lead to an increase in capacity, which can increase both aggregate supply and demand.

Over a period of several decades, coffee consumption declined from 75% of the adult population in 1962 to 49% in 2004. then, it increased to 56% in 2010. a firm with a good marketing orientation would have

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A good orientation would have explored the changes in these usage trends. By doing this, they could have figured out how to best market to these customers and maximize their profits. Even though there were drops in consumption, understanding and targeting those who still did consume would have borne the most success for those companies that undertook these steps.

Suppose over the last year that the price of recycled aluminum increased from $800 a ton to $900 a ton. over the same time a measure of the overall price level increased from 120 to 130. the price of recycled aluminum increased by

Answers

3.846153846% First we calculate the ratio of the current price of aluminum to the previous year 900 / 800 = 1.125 We then adjust it for the overall price increase 1.125 * 120 / 130 = 1.03846153846 subtract 1 and multiply by 100 to get a percentage 0.03846153846 3.846153846

Customer metrics assess how the organization manages its customer relationships by looking at what

Answers

Customer feedback is the main driver of customer metrics. These scores and responses can help a business understand which competencies they are succeeding in and which need adjustment or retraining. In addition, these metrics can measure the attitudes that customers have toward a company and how the company is presenting itself to the public.

In homologous recombination, the term "patch product" refers to

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Homologous recombination refers to exchange of genetic material between homologous pair of DNA. Patch product and splice products are the results of homologous recombination. Patch product is formed in homologous recombination when the enzyme resolvase cuts the strand invasion of holiday junction.
Patch product refers to no crossing over (or non-cross over products) during homologous recombination.
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