Q9. The profit levels of a company for varying levels of sales is shown in the table below: (All values in £1000) Sales 300 290 280 255 260 Profit 50 60 25 -10 10 A prospective investor is interested in seeing how the rate of profit is related to Sales and so produces the incomplete table below: Sales 300 290 280 255 260 profit rate Which is the row with the correct values of the profit rate? А. profit rate 22.7% 16.7% 12.4% -6.9% 4.44% В. profit rate 16.7% 20.7% 8.9% -3.9% 3.85% profit rate profit rate С. 18.2% 16.3% 4.6% -4.5% 5.58% D. 9.1% 36.3% 5.8% -0.5% 3.44% Ο Α. Α В. В С. С O D. D

Q9. The profit levels of a company for varying levels of sales is shown in the table below: (All values in £1000) Sales 300 290 280 255 260 Profit 50 60 25 -10 10 A prospective investor is interested in seeing how the rate of profit is related to Sales and so produces the incomplete table below: Sales 300 290 280 255 260 profit rate Which is the row with the correct values of the profit rate? А. profit rate 22.7% 16.7% 12.4% -6.9% 4.44% В. profit rate 16.7% 20.7% 8.9% -3.9% 3.85% profit rate profit rate С. 18.2% 16.3% 4.6% -4.5% 5.58% D. 9.1% 36.3% 5.8% -0.5% 3.44% Ο Α. Α В. В С. С O D. D

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

See similar textbooks

Similar questions

INR Ltd’s earnings per share next year is expected to be $2.10 and this is expected to grow at5% p.a. for the foreseeable future. Its required rate of return on equity has been estimated at 9%p.a. INR Ltd has a policy of reinvesting 40% of its earnings. The present value of INR Ltd’sgrowth opportunities is closest to: A. $7.78.B. $8.17.C. $11.11.D. $12.11
6
10 co Interest Rate (%) N B Investment Demand O E 0 $30 60 90 120 150 Investment ($) Price Level 0 AS Q₁ Real GDP ($) AD, (I=120) -AD₂ (I=90) *AD, (I=60) Refer to the above graphs, in which the numbers in parentheses near the AD₁, AD2, and AD3 labels indicate the level of investment spending associated with each curve, respectively. All numbers are in billions of dollars. The interest rate and the level of investment spending in the economy are at point C on the investment demand curve. To achieve the long-run goal of a noninflationary full-employment output Qf in the economy, the Fed should: decrease aggregate demand by increasing the interest rate. make no change in the interest rate. increase aggregate demand by decreasing the interest rate. increase aggregate demand by increasing the interest rate.
NPV Calculate the net present value (NPV) for the following 12-year projects. on the acceptability of each. Assume that the firm has a cost of capital of 7%. a. Initial investment is $1,000,000; cash inflows are $ 160,000 per Year b. Initial investment is $2,500,000; cash inflows are $320,000 per Year Using Excel to answer. Show all Formulas
SUBJECT: ENGINEERING ECONOMICS TOPIC: SINKING FUND METHOD PLEASE ANSWER THE FIRST QUESTION AND MAKE A BASIS ON THE SECOND PICTURE
What process does the net present value method use to help management determine whether a project is acceptable to a company? Options : A. It discounts net cash flows to their present value and then compares that value to the capital outlay required by the project.B. It determines the interest rate that will cause the present value of the capital expenditure to equal the present value of the expected net cash flows.C. It divides the present value of net cash flows by the initial investment to determine the profitability index of the project.D. It identifies the time period required to recover the cost of the capital investment from the net annual cash flow produced by the project.
Suppose that the price of a barrel of oil is $80 and interest rates remain at 8%. If a new technology is implemented in one of the wells and it costs $3,000,000. Calculated the estimated "profit" from outfitting one of our wells with this new technology.
Question 7 A project involves an immediate expenditure of $2 000, and will require additional expenditures of $150 a year for the next ten years, starting one year from now. After ten years it yields an income of $8 000, but a year later a further expenditure of $1 000 will be required to close down the project. What is its rate of return? 9% 10% 11% 12% 13% Save
Example 5. Investment. Simple Interest I=Prt A total of $10,000 was invested it in two business ventures, A and B. At the end of the first year, A and B yielded returns of 6% and 53 %, respectively, on the original investments. 4 How was the original amount allocated if the total amount earned was $588.75? Solu
100-There are multiple stages in a business life cycle. Sometimes they generate higher return while sometimes they face losses due to some unexpected events like COVID-19. Accounting literature comes forward in support of business in the form of transferring amounts across the years to fil this gap for the moment. There is no doubt that this will be showing a very glowing picture from the business side but it can also be a. Misleading as the investor thinks very positive which is not true b. None of the options c. Better as the investor is expecting a positive return in the future perspective d. Leading to higher share price in the open market resulting in good corporate image
Remaining Time: 01:34 23 Suppose a fiem's total variable costs are given by TVC(9) -3 g, and it has a fixed cost of 787 of which 507 is avonidatle, We want to find the firm's Bupply Lets finst find the minimum of the average variable and avoidable costa. This will allow us to find the price below which the firm wil not produce. Remember for decisionmaking only the avoidatble fixed cost matter. This occurs are The price at which the firm just breaks even is P= The firm's supply, then is q for PS 国助nd for P> Please give the supply in terms of upper case P and please use fractions.
2. A local company assembling stereo cassettes produces 300 units per month at a cost of P 800 per unit. Each stereo radio cassette sells for P 1,200. If the firm makes a profit of 10% on its 1,000 shares with a par value of P 200 per share, and the fixed costs are P 20 million per month. (a) What is the break-even point? (b) How must is the loss or profit if only 100 units are produced in a given month? Answer: [(a) 50 units per month; (b) P 3,300 per month]