20) Can i get help with this question please First Inc. currently grants no credit, but it is considering offering new credit terms of net 30. As a result, the price of its product will increase from $30 to$35. Expected sales will increase by 600 units per year. The original sales are 7,000 units per year. Variable costs will remain at $18 per unit and baddebt losses will amount to $12,000 per year. The firm will finance additional investment in receivables by using a line of credit, which charges 5% interest.The firm's tax rate is 40%. Calculate the NPV of this switch (Do not use the $ sign. If your answer is -$12,000, enter -12000, and if your answer is+$12,000, then enter 12000).Numeric Response

Given that, Sales = 7,000 units + 600 units =7600 units Price = $35 Then, sales price =…

First Inc. currently grants no credit, but it is considering offering new credit terms of net 30. As a result, the price of its product will increase from $3 $35. Expected sales will increase by 600 units per year. The original sales are 7,000 units per year. Variable costs will remain at $18 per unit and ba

First Inc. currently grants no credit, but it is considering offering new credit terms of net 30. As a result, the price of its product will increase from $3 $35. Expected sales will increase by 600 units per year. The original sales are 7,000 units per year. Variable costs will remain at $18 per unit and ba

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Topic One: Substitutes and Complements 1. How do retail stores display their merchandise taking into account substitute or complementary goods? Give some examples. 2. Have your purchases been influenced by these marketing techniques? Give some examples. Topic Two: Measuring Opportunity Cost How would you suggest to measure the opportunity cost of a parent that chooses to play with their child vice play sudoku? How would you measure the opportunity cost of the kid? Topic Three: Marginal Analysis, Opportunity Cost We read this week that opportunity cost must be used to make rational decisions, we also read that people should make decisions after considering marginal benefit versus marginal cost. Could you think in situations that you could use opportunity cost, marginal benefit and marginal cost concepts to make your own decisions? Provide examples.
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1. What is the relationship between working hours and wage levels? (A). An increase in the wage rate increases working hours if the substitution effect dominates the income effect. (B). An increase in the wage rate reduces the hours worked if the dominating effect is a substitution effect. (C). A decrease in the wage rate increases working hours if the substitution effect dominates the income effect. (D). Answers (A) and (B) are correct. (E). Answers (A) and (C) are correct.
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Q4 Solve in 5 min
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Question 7 (10 points) Listen Figure 2-7 HOURS WITHOUT SLEEP Refer to Figure 2-7. Taking cause and effect into account, which of the following interpretations would be most reasonable regarding the relationship between coffee and hours without sleep? The less coffee a person drinks per day, the more time he can go without sleep. There is no relationship betwveen how much coffee per day a person drinks and how long he can go without sleep. The more coffee a person drinks per day, the more time he can go without sleep. The more coffee a person drinks per day, the less time he can go without sleep. Question 8 (10 points) V Saved CUPS OF COFFEE PER DAY