5. Your company has $100 million available for investment in the followingpotential investment opportunities:Project NPVInitial Investment$5 million$15 million$15 million$50 million$10 million$10 million$20 million$60 millionE$12 million$35 millionRank the projects based on profitability and identify the projects thatshould be accepted keeping in view the company's capital budgetconstraints.ABCD

The question presented revolves around the essential concept of capital budgeting, which is a…

Answered: 5. Your company has $100 million…

Understanding Business

12th Edition

ISBN:9781259929434

Author:William Nickels

Publisher:William Nickels

Chapter1: Taking Risks And Making Profits Within The Dynamic Business Environment

Section: Chapter Questions

Problem 1CE

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Provide a circumstance under which the expected monetary value is appropriate for decision making.
Management wants to explore the total profit using What If analysis with the data below. Fixed Cost = $10,000 Material cost per toy = $0.15 Labor cost per toy = $0.10 Vary the Revenue per toy from 0.60 to 1.10 by 0.05, and the labor cost from 0.08 to 0.16 by 0.01 When the quantity sold is 27,000 toys, what is the range of profits when the sales price is $$0.70? - $1,090 to $1,340 $260 to $2,690 $1,610 to $4,040 $2,960 to $5,390 $530 to $2,960
CASE BACKGROUND The MGMT Insurance Ltd. accepts payments on various insurance policies from employees of businesses across the island. These businesses deduct payments from employees’ salaries and pay the insurance company a lump sum each month. This total amount deducted is shown on each employee’s payslip. Deductions are due at the end of each month and each participating business submits one payment for its employees to the insurance company via online payments through the bank. However, if payments were received after 11:00 a.m., the bank does not process them until the next business day. At the beginning of each month an administrative assistant at MGMT Insurance Ltd. downloads the deductions for each company and allocates payments to the various policies. These payments include the client’s unique number along with his/her relevant policy numbers and amounts due. However, recently there has been some complaints that payments for some policies were not being allocated correctly.…
Recently, you were assigned to manage a project for your company. You have constructed a network diagram depicting the various activities in the project (shown below to the right). In addition, you have asked your team to estimate the amount of time that they would expect each of the activities to take. Their responses are shown in the following table: D ew an example Activity A B с D Get more help. E Optimistic 4 5 4 1 Time Estimates (days) Most Likely 8 8 5 4 3 a. What is the expected completion time of the project? The expected completion time is days. (Enter your response as an integer.) 8 Pessimistic 12 12 7 5 MacBook Pro 9 Start + B D ( Finish A Q Q Clear all Check answer +
USCA Oil is a privately-held firm, owned by three families. They have two plants in the US (one in Dallas and one in Indianapolis) and one plant in Canada (Edmonton). They also have acquired a small lab in Grand Rapids, Michigan. Except for one item, all the items below can potentially cause a principal-agent problem. Choose the item that does not cause such a problem. 1. Expanding their NPD group, the managers in Indianapolis plant are hiring two highly educated engineers. 2. The manager of the Dallas plant is hiring a new HR Director. 3. To organize lab operation in Michigan, the owners have asked the previous manager of the Edmonton's plant to become the manager of their newly-acquired lab. 4. One of the owning families plans to sell half of its existing stocks to the other two families, with equal shares. #2 is not correct
opm
Address the market structure classification of the Apple iPhone 6 plus. Guidelines for this assignment are listed below: Discuss which market structure best aligns with the Apple iPhone 6 plus. Align characteristics of the market structure to that of the Apple iPhone 6 plus. Discuss how price and quantity are determined for the Apple iPhone 6 plus. Identify other competitors in the market. Discuss whether or not any other competitors have influence over the market. State whether or not any competitors engage in price discrimination. Identify if the market for cellular phone aligns with game theory to include, a Prisoner's Dilemma. Include the following: 1 to 2-pages of content At least two sources
Text: We can develop the CSR activities for Nestle company of planting trees and cleaning the lakes. This can be done by partnering with NGOs who are already working in these areas. The company can target several trees to be planted, for example, 100,000 in a quarter and take care of them till growth. To clean the lake, it can take the help of the National scientist of environmental science and fund the project to clean some of the lakes with the target number of again 50. A long-term solution must be used by them in cleaning the lakes, like stopping the sewage inflow and creating a small recycling plant before throwing water into the water bodies. The government, municipality, NGO, and environmental scientists are the main stakeholders involved. Here, the competition must not be created, but collaboration was be done between the competitors to help the society. The competitors will be other brands like Unilever and P&G. Progress indicators can be used as the number of trees…
CASE BACKGROUND The MGMT Insurance Ltd. accepts payments on various insurance policies from employees of businesses across the island. These businesses deduct payments from employees’ salaries and pay the insurance company a lump sum each month. This total amount deducted is shown on each employee’s payslip. Deductions are due at the end of each month and each participating business submits one payment for its employees to the insurance company via online payments through the bank. However, if payments were received after 11:00 a.m., the bank does not process them until the next business day. At the beginning of each month an administrative assistant at MGMT Insurance Ltd. downloads the deductions for each company and allocates payments to the various policies. These payments include the client’s unique number along with his/her relevant policy numbers and amounts due. However, recently there has been some complaints that payments for some policies were not being allocated correctly.…
Suppose you have a choice of three projects to choose from. Here the expected profits from these projects under the following economic scenarios: Project Poor/Fair Moderate/Stable Strong/Booming A -200 $400 $700 B -700 600 1200 C 100 500 900 Now suppose the probability of a Poor/Fair economy is 25%, a Moderate/Stableeconomy is 45% and there is a 30% chance for a Strong/Booming economy.A) Setup a decision tree.B) Determine the expected value (EV) for each project. What project shouldbe selected based on the expected value approach? Why?C) Determine the expected value with perfect information about the states ofnature?D) Determine the expected value without perfect information about the states ofnature?E) Determine the expected value of perfect information.
You are the Project Analyst for Nairobi Project Advisors who have been asked by a client to advise on which of the following two projects should be accepted. Each project costs US$ 10,000 and each entails a 12% cost of capital: Year Expected Net Cash flows Project X Project Y 0 ($ 10,000) ($ 10,000) 1 6,500 3,500 2 3,000 3,500 3 3,000 3,500 4 1,000 3,500 a) Advise on which project should be undertaken using the Pay Back Period (PBP), Net Present Value (NPV), Internal Rate of Return (IRR), and Modified Internal Rate of Return (MIRR) assuming: i. The projects are independent ii. The projects are mutually exclusive
6

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