In the marine resource model, there is a sustained yield for each effort level. Explain how the stock size would be affected if the short-term yield (harvest) is greater or less than the sustained yield by using the sustained yield curve.
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- Assume a high demand for the product and by-products that all produced goods are sold each year within the studyperiod. Calculate the following: Internal Rate of Return Based on the computed values, decide whether the project is economically justifiable or not.Choose the letter/s of the correct answer/s. In Plant Design, one is required to compute for one time-independent and one time-dependent market indicator.Which of the following pairs will provide a better market analysis?A. Payback Period & Breakeven PointB. Capitalized Cost & Payback PeriodC. Discounted Payback Period & Annual WorthD. Inflation Rate & ROIIn Plant Design, one is required to compute for one time-independent and one time-dependent market indicator.Which of the following pairs will provide a better market analysis? A. Payback Period & Breakeven PointB. Capitalized Cost & Payback PeriodC. Discounted Payback Period & Annual WorthD. Inflation Rate & ROI
- Why is the original cost estimate corrected based on buyout data? What three types of project costs present the greatest risk to the project manager? What are project labor curves used for?When constrained by a limiting resource, managers often seek to produce those products which have: Question options: a)The highest selling prices. b)The lowest average cost per unit. c)The highest contribution margin ratios. d)The highest contribution margin per unit of limiting resource.1. What is sensitivity analysis? 2. Perform a sensitvity analysis on the unit sales, salvage value, and WACC for a project. Assume that each of these variables deviates from its base-case, or expected value by plus or minus 10%, 20%, and 30%.The base case value for unit sales is 150,000. Calculate NPV for each case (18 NPV in total), then draw a graph with three lines (one for unit sales, one for salvage value, and one for WACC). At the end, perform a sensitivity analysis for the project (what you have seen, what conclusions you can make?). 3. What is the primary weakness of sensitvity analysis? What are its primary advantages?
- When constrained by a limiting resource, managers often seek to produce those products which have: a)The highest selling prices. b)The lowest average cost per unit. c)The highest contribution margin ratios. d)The highest contribution margin per unit of limiting resource.The best measure for evaluating the effectiveness of a manger in an investment center would be A. residual income measures B. current ratio measures C. success in meeting budgeted revenues D. success in controlling costsa) Briefly discuss the similarities and differences between the terms 'overhead absorption rate' and 'cost driver rate'. b) Briefly discuss the meaning of the term 'sensitivity analysis' and how it could be used in variable costing. c) Briefly discuss the characteristics of good information that budgets might be expected to possess. d) Briefly discuss the reasons why payback period is often preferred as an investment appraisal technique, and also its limitations.
- Metal manufacturing has isolated four alternatives for meeting for increased production capacity. The following summarized datea gathered relative to each of these alternatives. Alternative Expected Return Standard Deviation A 21% 8.3% B 25% 8.8% C 16% 6.1% D 13% 4.4% Calculate the coefficient of variation for each alternative If the firm wishes to minimize risk, which alternative do you recommend?Consider a partial output from a minimization problem that has been solved to optimality. Final Shadow Constraint Allowable Allowable Name Value Price R.H. Side Increase Decrease Labor Time 300 -5 300 100 150 The Labor Time constraint is a resource availability constraint. If the right-hand-side for this constraint decreases to 180, which ofWhen the net present value of a project is equal to zero, the project is operating at the Group of answer choices minimum possible level of production. maximum possible level of production. financial break-even point. cash break-even point. accounting break-even point.
