How sensitive is the NPV to changes in the price of the new smart phone?

Q: How does the Modified Accelerated Cost Recovery System (MACRS) givetaxpayers a break?

A: Depreciation means decline in the estimation of benefit inside its valuable life because of mileage…

Q: a. Using the present worth method, which tube bender should it buy? b. RCMP has discovered a third…

A: Present Worth: It represents the present value of the cost and benefits of a project.  To compute…

Q: When a buyer makes a marginal decision on how to spend an additional dollar, it allows them to:…

A: Utility maximization is reflective of a theory which is focused at attainment of highest level of…

Q: Do you think that the pandemic and shortages could cause some companies to decide to use a different…

A: The costing methods are the methods that are used by companies to determine the total cost incurred…

Q: hat are the advantages and disadvantages of the new way of beyond budgeting?

A: Beyond budgeting - It is a concept which focuses on the adaptive management process and encourages…

Q: Compute the sales of laptops using the naive forecasting method.

A: Month No of Toys Sold Forecast Forecast Error Absolute value of Forecast Error Squared…

Q: Possible Risks of Maintaining Fewer Suppliers?

A: Suppliers are the persons from which business purchase goods and supplies to be sold. Business…

Q: What is the biggest disadvantage of using ROI to evaluate investment centers?

A: Return on Investment: Under return on Investment, the investment opportunity with the highest rate…

Q: what is price stability? How does price stability affect business and household?

A: Price stability is when the economy is shifting little or no over a particular time period. This…

Q: . VWhat is your rate of return on this investment? *

A: "Since you have posted multiple questions, we will solve first question for you. If you want any…

Q: Company X sees a disruption in its supply chain at the same time it sees a decrease in customer…

A: A supply chain network is an organization of individuals, associations, and exercises that move an…

Q: For a small brick-and-mortar store, what would be a realistic price for creating an online store for…

A: Answer:- Online store meaning:- An online store is a website where customers may place orders for…

Q: In what situation should you BUY?

A:

Q: Are there conditions under which a firm might be better off if it were to choose a machine with a…

A: The question is based on the concept of capital budgeting and its techniques. Each method of capital…

Q: QUESTION 22 This question asks you to compare the Slutsky equations for the consumer's model with…

A: “Since you have asked multiple question, we will solve the first question for you. If you want any…

Q: Time value of money for renewable energy systems is? O The system may earn higher cash value with…

A: Renewable energy systems also obsolete in time, and thus the efficiency of cashflow generated from…

Q: resource cost of inflation

A: Inflation means an increase in the prices of the products thus leading to a decrease in purchasing…

Q: In Know Your Product E1, we discussed inflation shielding as a product feature in annuities. What…

A: Inflation is a situation in an economy in which prices of products and services rises. During…

Q: at what price there will be a margin call? what is your return?

A: Initial Margin or Account Value = 100Leverage ×Value of Short Selling…

Q: NPV

A: Introduction: NPV is one of the capital budgeting decision that is used by companies in to order to…

Q: How is it possible to achieve a higher rate of return without significantlyincreasing risk?

A: As we all learnes till now that higher the risk provides higher return and if we want the high…

Q: How can we Analyze Expected House Prices?

A: Real estate has traditionally been considered a safe investment. But recessions and other disasters…

Q: Explain the advantage of saving early?

A: Money received today is worth more than money due at a later date, according to the time value of…

Q: What would be the expected change in profit?

A: "Contribution Margin: The Contribution Margin is also can be treated on a gross or per unit basis.…

Q: Why have ETFs grown to become one of the most popular investment products? What are some of the…

A: Exchange traded funds are all such mutual funds which will be traded over the exchanges and they are…

Q: What is the Maximax Regret method: SA. Using the Minimax Regret decision method list your decision…

A: Solution- (5)-  The maximax criterion is also known as optimistic decision criteria is a…

Q: In general, what effect would a reduction in risk have on “going-in” cap rates? What would this…

A: Capitalization rate is the projected rate of return percentage that a property will make on the…

Q: Do you think investors should practice dollar cost averaging when investing their money? Why or why…

A: Dollar-Cost Averaging: Dollar-Cost averaging is an investment approach that involves investing an…

Q: When will the prime rate go up and what factors drive it?

A: The prime rate is the best interest rate you can get, and it's influenced by the economy.   In order…

Q: What is the net present value of the new oven? IRR?

A: The difference between the current value of cash inflows and withdrawals over a while is known as…

Q: With the use of activity based cost, is eliminating cheap cars will solve the problem from cost of…

A: The activity-based costing or ABC system is a method of accounting used to calculate the total cost…

Q: Should companies completely avoid high-risk projects?

A: When we talk about risks involved in a project, then that risk can be of many types. Risks related…

Q: As you increase the length of time involved, what happens to future values? What happens to present…

A: Time value of money refers that money received now has higher worth in comparison with money…

Q: Why might managers resist buying a more expensive piece of equipment, known to have a lower TCO,…

A: Managers resist purchasing an extra expensive part of equipment so as to evade high initial outlay.

Q: Question #4 "The higher the minimum desired rate of return, the higher the price that a company will…

A: Yes, I agree that the higher the minimum desired rate of return the higher the price that the…

Q: Increased unemployment can reduce consumer demand for goods and services, leading to ?

A: Deflation is the state of economy in which overall price level decreases.

Q: What challenges does Blu Dot face in selling consumer products (as opposed to business products)?

A: Consumer products, often called as final goods, are objects bought for personal use by individuals…

Q: What are the advantage of embracing digital currencies in investment?

A: Digital currency is a type of currency which is available for use only in the electronic or digital…

Production Budget

A budget can be defined as a financial plan designed by an undertaking for a definite period in the future that can contribute towards enhancing the financial success of the business undertaking. It is used to estimate the revenue and expenses. The budget generally takes into account both current and future income and expenses.