1. The company consulted a roofing coating contractor who presented the company with two options. The first option is a coating that will cost P20,000 which would extend the life of the roofing for 3 years from date of application, and the second option will cost P30,000 and which would extend the life of the roofing for 5 years from the date of application. At what rate of return are the two investments equal?
Q: A power plant is planning to acquire a new Diesel generating set to replace its resent unit which…
A: This question is related to the topic -Make or buy analysis (Decision Making) and this topic falls…
Q: The buyer and seller are engaging in an FPIF (Fixed-Price Incentive Fee) contract and agree on the…
A:
Q: Given the following payoff table with the profits ($m), a firm might expect alternative investments…
A: Since you have submitted a question with multiple subparts, as per guidelines we have answered the…
Q: A local toy manufacturer has three different mechanisms that can be installed in a doll that it…
A: A decision tree is a managerial tool which helps to identify the best decision from all available…
Q: A power plant is planning to acquire a new Diesel generating set to replace its resent unit which…
A: This question is related to the topic -decision making and this question fall under the operations…
Q: Jim Campbell is founder and CEO of OpenStart, an innovative software company. The company is all…
A: The above case study is from the topic: Capital Structure in a Perfect Market. The answers to the…
Q: our manager is quite concerned about the recent deterioration of a section of the roof on a building…
A:
Q: A manager is quite concerned about the recent deterioration of a section of the roof on a building…
A: Expected monetary value (EMV) is a risk management technique to help evaluate and analyze chances in…
Q: The water pump company has succeeded in introducing a water pump that saves electricity, is easy to…
A: Given: TR = 22000Q − 15.6Q2 MR = dTR / dQ = 22000 − 31.2Q TC = 300000 + 4640Q + 10Q2 MC = dTC / dQ =…
Q: Mr Price, has no debt outstanding and a total market value of R150,000. Earnings before interest and…
A: Earnings per share is calculated by dividing Earnings available to equity shareholders by number of…
Q: 34. The company currently calculates its Days Receivables at 32 days, its Days Payables at 41 days…
A: Formula to be used; Cash conversion cycle (CCC) = Days Receivables + Days Inventory - Days Payables…
Q: Ms. Rabiya Mateo and Ms. Sandra Lemonon, two real-estate investment partners, are assessing the…
A: The Tagiug City averse partner is more likely influenced by Risk Severity. Risk Severity refers to…
Q: It is the beginning of September and you have been offered the following deal to go heli-skiing. If…
A:
Q: 1. Consider the following demand scenario: Quantity Probability 2,000 2,100 3% 8% 2,200 15% 2,300…
A: Given data, Quantity Probability 2000 3% 2100…
Q: List the three categories of risk you may encounter when developing the plan, one example of each…
A: The three categories of risk while developing a Plan are:- 1) Budget Risk. 2) Operational Risk. 3)…
Q: A contractor enters into a contract for the expansion of an existing two-lane highway to a…
A: Profit or fee amount may be granted, in whole or in part, based on periodic reviews of ongoing…
Q: Mr. Appoh has operated a satisfactory account with your branch for a period of 6 years. He is a…
A: The documents which Mr. Appoh is required to present are as stated in Step 2.
Q: Mira Mesa Appliances makes and sells kitchen equipment for offices and hotel rooms. Mira Mesa…
A: This question is related to the topic Production and Supply Chain Management and This topic falls…
Q: For the following payoff table, what alternative should be chosen if you are following a Maximin…
A:
Q: A company must decide now which of three products to make next year to plan and order proper…
A: (a) Minimum: This is defined as the decision-making strategy under uncertainty. It is termed as a…
Q: The owner of a small business is considering three options: buying a computer, leasing a computer,…
A: Given data; Alternative State #1 (S1) State #2 (S2) State#3 (S3) A1 4 6 5 A2 7 5 1 A3…
Q: n a _____, the owner-debtor gives a security interest in collateral to a creditor that allows the…
A: The correct answer is Secured transaction
Q: A decision maker's worst option has an expected value of $1,000, and her best option has an expected…
A: A decision producer's most noticeably terrible option has a normal value of $1,000. This implies…
Q: If the probability of a "super-evenl'' increases, does the"unique-event" risk increase or decrease…
A: Risk management is the process of identifying, analyzing, and controlling hazards to an…
Q: A manager is quite concerned about the recent deterioration of a section of the roof on a building…
A: A decision tree is a graphical illustration of all the desirable answers to a decision based on…
Q: A firm’s manager must decide whether to make or buy a certain item used in the production of vending…
A: Given- Make Buy Annual fixed cost $150,000 None Variable cost/unit $60 $80 Annual volume…
Q: Come up with a simple rule of thumb that can be applied to decisions of this nature, given any…
A: The rule of thumb that businesses in similar circumstances can use is as follows:
Q: i. Showing all the working clearly, prepare the payoff table if the states of demand are high (S.),…
A: THE ANSWER IS AS BELOW:
Q: You are entrusted with deciding whether to make or buy software. The make decision has a setup cost…
A: Make decision: Set up cost = $15000 Variable cost (monthly maintenance) = $1200 Purchase decision:…
Q: 1. A factory operator bought a diesel generator set for Php 12, 500 and agreed to pay the dealer a…
A: We’ll answer the first question since the exact one wasn’t specified. Please submit a new question…
Q: Suppose the purchase price is $1.6 billion. Consider the following scenario: the realisation of…
A: When consumers/buyers genuinely acknowledge the value, they are receiving from using a product or…
Q: 2. A toy manufacturer has three different mechanisms that can be installed in a doll that it sells.…
A: Given: Alternative Light demand Moderate Demand Heavy Demand Wind-up action 325,000…
Q: Emma can either buy a used car or buy a new car. The used car costs $12,800 with a 40% chance she…
A: Number of alternatives: 2 Alternative 1: Buy a used car Alternative 2: Buy a new car
Q: b. - If the probability for unfavorable and favorable market conditions is 35% and 65% respectively,…
A: The following information is given: Annual Demand (D) for favorable and unfavorable conditions is…
Q: Our class has found a local store that would like to sell our student's totes. We decide that we…
A: The value that a seller adds to the cost price of a product is referred to as markup. Usually, the…
Q: cenario One: An 86-year widow comes in monthly to have her blood drawn and monitored ever since her…
A: Operations management at front desk involves customer satisfaction but upholding the business…
Q: Determine the type of risk response being described in each case. Mr. Author annually publishes a…
A: Risks are problems, issues, concerns, or circumstances that can carry a positive & negative…
Q: Toyota is filling an order from a Korean industrial company for machinery worth 160,000,000 Won. The…
A: Given, Machine Amount- 160,000,000 Opportunity cost- 8% Spot Rate- 800 won/dollar Discount- 12%
Q: Consider an insurance contract with the premium r=$200 and payout q=$800. a.) John has…
A: Given Data: - Premium= $200 Payout = $ 800 Healthy state Income = $900 Sick State Income = $100…
Q: Improvised explosive devices (IEDS) are responsible for many deaths in times of strife and war.…
A: Equivalent annual cost (EAC) is the expense each year for purchasing or keeping a resource over its…
Q: This game has two players: the employee (Homer) and the employer (Mr. Burns). Homer has to decide…
A: A payoff matrix is described as a visible symbol of all the desirable consequences that can happen…
Q: * 00 A toy manufacturer has three different mechanisms that can be installed in a doll that it…
A: The detailed solution is given in Step 2.
Q: You have data on the demand for a period of 8 years. The required / finding the expected demand for…
A: The simple moving average is the method of forecasting the demand based on past but only recent…
Q: Explain the opportunity cost of the movie ticket. 22b + 11m = 440TL
A: Given, Monthly income or budget = 440 TL Suppose, b = number of books m = number of movie tickets…
Q: A new minor league baseball team is coming to town and the owners have decided to build a new…
A: Expected value is a proportion of what you ought to hope to get per game over the long haul. The…
Q: Suppose mr. raahim want to start a business in his local community. Now Briefly explain mr.…
A: Minimal viable product focus on avoiding unnecessary and lengthy work. It have enough features to…
Step by step
Solved in 2 steps with 2 images
- An investor has patented a new device, and a bank is willing to lend the money to manufacture the device. Preliminary investigation establishes a suitable planning period of 5 years for the comparison of payoffs from this invention. According to the investor’s analysis, profit of $800,000 can be anticipated over the next 5 years if sales are strong; if sales are average, the investor can expect to make $200,000; and if sales are week, the investor expects to loss $50,000. Nationwide Enterprises, Inc. has offered to purchase the patent rights. Based on royalty arrangement, the inventor estimates that selling the patent rights may well bring a net profit of $400,000 if sales are strong, $70,000 if sales are average and $10,000 if sales are week. On the basis of extensive investigation of past experience with similar devices, the investor assigns the probabilities for strong, average, and week sales to be 0.2, 0.5, and 0.3 respectively. 1. Setup the payoff table for the inventor’s…Relevant Cost Exercises Each of the following situations is independent:a. Make or Buy Terry Inc. manufactures machine parts for aircraft engines. CEO Bucky Waltersis considering an offer from a subcontractor to provide 2,000 units of product OP89 for $120,000.If Terry does not purchase these parts from the subcontractor, it must continue to produce themin-house with these costs:[LO 11-1, 11-2, 11-3,11-4, 11-7]Cost per UnitDirect materials $28Direct labor 18Variable overhead 16Allocated fixed overhead 4Required1. What is the relevant cost (per unit, rounded to 2 decimal places) to make the product internally?2. What is the estimated increase or decrease in short-term operating profit of producing the productinternally versus purchasing the product from a supplier? (Round your answer to nearest whole dollar.)3. What strategic considerations likely bear on this make-vs.-buy decision?Albert has won two tickets in a raffle to see the latest movie at the cinema. The market price of a ticket is $20. Albert has no friends or family living near by, so he would only be using one ticket. He mentions this to an acquaintance at work, Rashid. Rashid thinks to himself that he would like to see the movie. He starts haggling with Albert over the purchase of the remaining ticket. Assuming that both Albert and Rashid are rational, self-interested people, what price will they eventually agree on? Explain your answer.
- A man purchased a house for P425,000. In the first month that he ownedthehouse, he spent P75,000 on repairs and remodelling. Immediately after the housewas remodeled, he was offered P545,000 to sell the house. After some consideration, he decided to keep the house and have it rented for P4,500 per month startingtwomonths after the purchase . He collected rent for 15 months and then sold the housefor P600,000. If the interest rate was 1.5% per month, how much extra money didhemake or lose by not selling the house immediately after it was remodeled?Under some circumstances, a seller would prefer that the auction design guarantees that the winner is the bidder with the highest valuation, but in other circumstances, the seller would prefer not. Explain why.When SS Electroplating Company started the electroplating operations in a residential location in Bengaluru, it received a notice from the pollution Control Board to install the effluent treatment plant within 15 days, failing which they would seal the plant. The Director of the company collected the information that it would cost about 10,00,000 to buy an effluent treatment plant, an area of about 600 sq.feet to install it over a period of 2-3 months, & running cost of about 40,000 per month for the purchase of material like costic soda & others. The effluent contained nickel, synide, cromium, cadminum & zinc, which were to be treated separately using different chemicals. After effluent liquid of about 800 litres per day was treated, the sludge was to be dried, packed, stored & dumped in a government notified place. The entire process would not only cost substantial amount, but also would need additional area of about 600-700 sq. feet The company gathered information…
- Weismann Company issued 18-year bonds a year ago at a coupon rate of 11 percent. The bonds make semiannual payments and have a par value of $1,000. If the YTM on these bonds is 10 percent, what is the current bond price?psychic will tell you the sex of the unborn child from any photograph of the mother. Cost is $ 40. If the psychic guesses right he or she is going to keep all the money. But if psychic does not guess right he or she promises to give the $40 back and pay in addition $30 out of her pocket as a compensation for the wrong answer. Assume postage fees for the return mail are zero. Boy Probability is 0.51 and Girl Probability is 0.49. A) Suppose the psychic replies "boy" to all inquiries. In the worst case, everyone who has a girl will ask for her money back. Use the expected value equation to estimate the expected profit per inquiry. B) Suppose that the psychic replies "girl" to all inquiries. What is the expected profit per inquiry? C) Suppose the psychic chooses randomly the sex of the child. For example it may choose "boy" in all inquiries in one day and "girl" in the next day. What is the expected profit per inquiry in this case?Choose the right answer. 5. (Sale of Goods) Amira bought a big oven yesterday. Today her little sister, Bashira takes the oven to her house to bake a cake, after she receive permission to do so. Tomorrow her friend Cinthia wants to rent the oven and and she already paid RM50 for it. Who has the title to the machine? a. Asmira b. Bashira c. Cinthia d. Amira and Cinthia e. Amira and Bashira 6. (Sale of Goods) Who has possession of the machine? a. Asma b. Bashira c. Cinthia d. Amira and Cinthia e. Amira and Bashira 7. (Sale of Goods) Who has the legal right to the machine? a. Asma b. Bashira c. Cinthia d. Amira and Cinthia e. Amira and Bashira 8. (Sale of Goods) Who has the equitable right to the machine? a. Asma b. Bashira c. Cinthia d. Amira and Cinthia e. Amira and Bashira
- 1.A merchant marks up the cost of cloth by 30% and then gives a discount of 20% on the marked price to all his customers. What is his profit/loss percentage in winter when the meter-scale shrinks by 10% due to cold? 2.Vijay, Saral and Himanshu visited a shop to buy a certain article and each one of them bought one unit of the article. The shopkeeper gave a discount of 20% to Vijay, two successive discounts of 20% and 25% to Saral and three successive discounts of 20%, 25% and 40% to Himanshu. If an overall discount of x* was given by the shopkeeper then what is the value of x? 3. The total number of employees at Mx Corp is 50% more than the total number of employees at Nx Corp. All the employees of Mx Corp and Nx Corp participate in a survey where they are asked the question "Do you think Commonwealth Games 2010 would be a grand success?". The question has to be answered in either Yes' or 'No'. 80% of those who say Yes' are from Mx Corp and 80% of those who say 'No' are from Nx Corp.…Given the following data with the direct costs for eachactivity as shown, calculate the ROR of the contractor.Assume that (a) the markup is 15%; (b) retainage is 5% onthe first 50% of worth, and 0% thereafter; (c) paymentrequests are submitted at the end of each month, and paymentsare received one month later; and (d) the financecharge is 1% per month of the amount of the overdraft at theend of the month.You own Athleticon, which manufactures athletic wear. Your new contract with Atlanta United, a professional soccer team, allows Athleticon to be the sole suppler of athletic wear with the “Atlanta United” logo. No one lese can manufacture athletic wear with the “Atlanta United” logo. What do you think will be Athleticon’s level of profitability on the sale of “Atlanta United” athletic wear? Explain why. Your contract with Atlanta United only lasts 3 years. It was not renewed. Other firms can now manufacture athletic wear with the “Atlanta United” logo 2. What would you expect to happen to the price of “Atlanta United” athletic wear? Explain why.