The sales and profit for two years are as below: Sales Profit 2020 250000 40000 2019 100000 10000 What will be the correct option of Profit when sales OMR 500000 are given? Select one: a. OMR 80000 b. OMR 50000 c. None of the options d. OMR 90000
Q: The sales and profit for two years are as bele Sales Profit 2019 50000 15000 2020 90000 35000…
A: Ans. PV ratio is measured by the rate of change of profit due to change in the volume of sale.
Q: n entrepreneur has $200.000 is available for investment and Minimum Acceptable Rate of Return…
A: Weighted average return of rate applies various weights upon the investment depending upon the share…
Q: The manager put a plan to reduce the selling period in the (2020) by (16.7%) from the previous year…
A: Inventory turnover shows the rate by which an entity sold it goods and replaces its inventory during…
Q: Present value comparisons of single amounts In exchange for a $20,000 payment today, a well-known…
A: Given: Opportunity cost =11%
Q: 2019 2020 Sales price per unit R15 R19 Variable cost per unit R6 R7 Fixed cost(FC) per annum R650…
A: Break-even analysis is a technique widely used by the production department. It helps to determine…
Q: A company is considering two projects. The discount rate is 10 percent, and the projects' cash flows…
A: Net present value (NPV) is the difference between the present value of cash inflows and cash…
Q: Find the profitability index for Oman Clothing Company if the initial investment is 10700 OMR and…
A: Profitability index is a measure of capital budgeting decision which aims to analyze whether the…
Q: The sales and profit for two years are as below: Sales Profit 2019 250000 40000 2020 100000 10000…
A: In this question, first, we have to calculate the variable cost percentage by using the following…
Q: An investor is considering two alternatives of investment. based in IRR criterion which one a better…
A: Investors have different options to make investments, and the motive behind investments is to…
Q: The sales and profit for two years are as below: Sales Profit 2019 50000 15000 2020 90000 35000…
A: Margin of safety is sales revenue over and above breakeven sales revenue. Breakeven sales revenue is…
Q: Compare the alternatives shown below on the basis of their present worth, using an interest rate of…
A: Capital budgeting is a financial tool that helps to evaluate a capital investment's profitability…
Q: A company is planning to expand its business is costing OMR 21761. The following cash inflows are…
A: Capital budgeting techniques are the methods that are used to evaluate various alternatives of…
Q: A firm is considering the following alternatives, each with a five year life. What is the IRR of the…
A: IRR is the rate of return a project generates through its lifetime expressed in annual terms. It is…
Q: A company is considering two projects. The discount rate is 10 percent, and the projects' cash flows…
A: NPV =Present Value of Future Cash Flows - Initial Investment IRR is the rate at which Present Value…
Q: You are considering two possible marketing campaigns for a new product. The first marketing campaign…
A: Cash outflow = Perpetuity Cash inflow / IRR
Q: The sales and profit for two years are as below: Sales Profit 2019 25000 8000 2020 20000 5000 What…
A: Variable costs are costs that changes with change in level of activity. Fixed costs are costs that…
Q: a. Determine the company's break-even point (in sales value) and margin of safety (in sales value)…
A: BREAK-EVEN POINT (SALES VALUE) = TOTAL FIXED COSTS/CONTRIBUTION TO SALES RATIO MARGIN OF SAFETY =…
Q: The sales and profit for two years are as below: Sales Profit 2019 250000 40000 2020 100000 10000…
A: The question is multiple choice question Required Choose the Correct Option
Q: Which alternative in the table below should be selected when the MARR = 4% per year? The life of…
A: IRR is a rate at which NPV of the project is equal to the zero or it can be said that PV of cash…
Q: Using the present worth ( PW ) methods and a MARR = 10 % per year. is the investment proposal shown…
A: When the present worth of the cash flow series on an investment proposal is positive then such…
Q: Let's say that the rights to Frederico John Michael's masterpiece “the paintings” are to be…
A: Capital budgeting is the process by which a corporation examines potential large projects or…
Q: 1. What would be the amount of decrease in gross profit due to the change in selling price assuming…
A: In case of change in only selling price, the cost of sales shall remain same. However, when…
Q: You have the opportunity to make an investment that costs $1.000,000. If you make this investment…
A: The net present value of the investment can be calculated with the help of discount rate. If the…
Q: Evaluate the following alternatives through the VPN, VAUE and IRR of the best option. To evaluate…
A: Alternative investments comprises of private equity, futures trading, hedge funds, commodities and…
Q: Consider the three mutually exclusive alternatives: A B Initial cost $100,000 $120,000 $140,000…
A: Minimum Acceptable rate of return is the minimum rate which the management wishes to have from any…
Q: A fırm is considering the following alternatives, each with a five year life. What is the IRR of the…
A: The Internal rate of return is a capital budgeting metric which is used to measure the return on…
Q: You solve present value problems on a financial calculator just like you do future value problems.…
A: In the given question we are required to explain how to calculate the present value on financial…
Q: The sales and profit for two years are as below: Sales Profit 2019 250000 40000 2020 100000 10000…
A: Variable costs are costs that change with change in level of activity. But fixed costs are not…
Q: Raysut cement has taken up a new project with an initial investment of 125000 OMR.The expected…
A: Capital project appraisal involves the evaluation of profitability and liquidity position based on…
Q: The sales and profit for two years are as below: Sales Profit 2019 50000 15000 2020 90000 35000…
A: PV ratio is profit volume ratio in business which measures that, how profit amount is changing by…
Q: You are considering two possible marketing campaigns for a new product. The first marketing campaign…
A: IRR is the rate at which persent value of inflows is equal to present value of outflows. Present…
Q: A company is considering two projects. The discount rate is 10 percent, and the projects' cash flows…
A: ANSWERS OF ALL THREE QUESTIONS WILL BE STEPS PROVIDED BELOW
Q: Find the profitability index for Shanfari Company if the initial investment is 7900 OMR and the cash…
A: An investment appraisal is a capital budgeting process that involves the evaluation of the…
Q: Salalah Wind Energy has taken up a new project with an initial investment of 50000 OMR.The expected…
A: Future cash flows implies those cash flows which will be received at some point in future. The…
Q: using the incremental rate of return analysis, if M
A: Incremental IRR analysis is a technique used in capital budgeting to analyze different investment…
Q: Two investments have the following pattern of expected retuns: Year 1 $5,100 Year 2 $10,100…
A: BTIRR is the before tax internal rate of return of the cash flows. It is the rate at which the net…
Q: assume that $1 one year from now is worth $0.90 today, and $1 two years from now is worth $0.75…
A: Present value is the concept that states an amount of money today is worth more than that same…
Q: Flextire Manufacturing is considering two mutually exclusive proposals. Each will cost $80,000 and…
A: Problem solving or decision making is done with a structured non-parametric approach is known as…
Q: music studio predicts its future yearly net income (loss) to be as follows: Year 1: - $120 Year 2:…
A: NPV FORMULA: NPV=∑i=1nfuture cashflow1+ri where, n= number of years r=discount rate
Q: Consider the mutually exclusive alternatives given in the table below. The MARR is 10% per year.…
A: Minimum Acceptable rate of return is the minimum rate which the management wishes to have from any…
Q: A firm is considering the following alternatives, each with a five year life. What is the IRR of the…
A: Internal Rate of Return is the discounting rate where the net present value of the project is zero.
Q: Find the profitability index for Oman Air conditioner Company if the initial investment is 4000 OMR…
A: Profitability index is a part of capital budgeting decision where present value of cash inflows and…
Q: 2019 2020 sale price per unit R15 R19 Variable cost per unit R16 R7 Fixed cost(FC) per annum R650…
A: Break even point (BEP): Breakeven is the point where total expenses are equal to total revenue. at…
Q: 1- Find the internal rate using the method of Internal Rate of Return (IRR) if i = 15%, for the…
A: Internal Rate of Return (IRR) refers to the rate which equates the present value of future cash…
Q: 1. You are considering the purchase of an apartment building with the following information:…
A: It is given that: Purchase price - $12,500,000 Year 1 NOI - $1,000,000 Growth – 4% Holding period –…
Q: Berhad is considering which of two mutually exclusive projects it should estment in the month of…
A: Pay back is period required to recover initial costs. PROJECT AA initial cost =70000 Cash flow for 3…
Q: Proposal A Proposal B Benefits per year Benefits per year Probability $18,000 | Conservative=0.25…
A:
Q: Max is planning to buy an equipment. Model X cost $300 to purchases and result is a costing savings…
A: Hi! Thank you for the question, As per the honor code, we are allowed to answer three sub-parts at a…
The sales and profit for two years are as below:
Sales Profit
2020 250000 40000
2019 100000 10000
What will be the correct option of Profit when sales OMR 500000 are given?
Step by step
Solved in 2 steps
- The sales and profit for two years are as below: Sales Profit 2019 25000 8000 2020 20000 5000 What will be the correct option for Sales required to earn a profit of OMR 17000? Select one: a. None of the options b. OMR 45000 c. OMR 35000 d. OMR 40000The sales and profit for two years are as below: Sales Profit 2019 25000 8000 2020 20000 5000 What will be the correct option for Sales required to earn a profit of OMR 17000? Select one: O a. OMR 45000 O b. OMR 40000 O c. OMR 35000 O d. None of the optionsLipsion Ltd company is thinking about investing in one of two potential new productsfor sale. The projections are as follows: year revenue/ product s revenue/ product v0 (150,000) outlay (150000) outlay1 14000 150002 24000 253333 44000 520004 84000 63333 Calculate the IRR for Product V only using 1% and 17% to 2 d.p.
- Lipsion Ltd company is thinking about investing in one of two potential new productsfor sale. The projections are as follows: year revenue/ product s revenue/ product v0 (150,000) outlay (150000) outlay1 14000 150002 24000 253333 44000 520004 84000 63333 Calculate NPV of both products (to 1 d.p.) assuming a discount rate of 7%Lipsion Ltd company is thinking about investing in one of two potential new productsfor sale. The projections are as follows: year revenue/ product s revenue/ product v0 (150,000) outlay (150000) outlay1 14000 150002 24000 253333 44000 520004 84000 63333 Calculate NPV of both products (to 1 d.p.) assuming a discount rate of 7%. Then decide which product should be selected and why ?The sales and profit for two years are as below: Sales Profit 2019 250000 40000 2020 100000 10000 What will be the correct option for Variable cost of year 2019? Select one:a. 90000b. 70000c. 80000d. None of the options
- A company is thinking of investing in one of two potential new products for sale. The projections are as follows: Year Revenue/cost £ (Product A) Revenue/cost £ (Product B)0 (150,000) outlay (150,000) outlay 1 24,000 12,0002 24,000 25,3333 44,000 52,0004 84,000 63,333 Calculate NPV of both products (to 1 d.p.) assuming a discount rate of 7%. Which product should be chosen and why?A company is thinking in investing in one of two potential new products for sale. The projections are as follows: year Revenue/cost £ (Product S) Revenue/cost £ (Product V) 0 (150,000) outlay (150,000) outlay 1 14000 15000 2 24000 25333 3 44000 52000 4 84000 63333 a) Calculate the IRR for Product V only using 1% and 17% to 2 d.p.b) Outline the advantages and disadvantages of the IRR and payback using appropriate academic sources.A company is thinking of investing in one of two potential new products for sale. The projections are as follows: Year Revenue/cost £ (Product A) Revenue/cost £ (Product B)0 (150,000) outlay (150,000) outlay 1 24,000 12,0002 24,000 25,3333 44,000 52,0004 84,000 63,333 Calculate the IRR for Product B only using 3% and 15% to 2 d.p.
- A company is thinking in investing in one of two potential new products for sale. The projections are as follows: year Revenue/cost £ (Product S) Revenue/cost £ (Product V) 0 (150,000) outlay (150,000) outlay 1 14000 15000 2 24000 25333 3 44000 52000 4 84000 63333 a) Calculate the payback period for both products in years and months, not as a decimal. Please present answer to nearest month.b) Calculate NPV of both products (to 1 d.p.) assuming a discount rate of 7%.c) Which product should be chosen and why?d) Calculate the IRR for Product V only using 1% and 17% to 2 d.p.e) Outline the advantages and disadvantages of the IRR and payback using appropriate academic sources.Approximately, what is the value of the total Present worth (where Ptotal= PA + PG) if G (arithmetic gradient) =160, n=2 years, A=240 and i= 2.5% per year? Select one: a. 738 b. 511 c. 615 d. 825 not use excelThe Sloan Corporation is trying to choose between the following two mutually exclusive design projects: Year Cash Flow(I) Cash Flow(II) 0 –$ 55,000 –$ 18,900 1 25,000 10,150 2 25,000 10,150 3 25,000 10,150 a-1 If the required return is 10 percent, what is the profitability index for both projects? (Do not round intermediate calculations. Round your answers to 3 decimal places, e.g., 32.161.) a-2 If the company applies the profitability index decision rule, which project should the firm accept? Project I Project Il b-1 What is the NPV for both projects? (A negative answer should be indicated by a minus sign. Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.) b-2 If the company applies the NPV decision rule, which project should it take? Project I Project II
