Penrose contends that while services manage the regular operations of the company and make it easier to take advantage of new opportunities, they also produce ideas for new markets, products, and services.
What are services?An (intangible) act or use that a customer, business, or government is prepared to pay for is referred to as a service. Barbers, doctors, attorneys, mechanics, banks, insurance businesses, and other professionals are a few examples. Public services are those that are funded by the entire society (a nation-state, fiscal union, or region).
Service providers profit from resources, expertise, innovation, and experience to the benefit of service consumers. Services can be viewed as intangible activities or performances that the service provider offers to the client in exchange for payment.
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What economic concept is applied in this statement? By earning higher levels of education, students learn skills and are more likely to be employed. In their jobs, they use their skills to provide goods and services to others. A. equilibrium B. law of demand C. law of supply D. negative externality E. positive externality
By earning higher levels of education, students learn skills and are more likely to be employed. In their jobs, they use their skills to provide goods and services to others. Positive externality is applied in this statement.
What is high level of education?After a person finishs high school, they can pursue higher education. It usually takes place at universities and colleges of further education and encompasses undergraduate and postgraduate study.
Person's educational level simply refers to highest and most recent academic level or school.
Thus option E is correct.
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Answer:
positive externality
Explanation:
Suppose an economy has 100 units of capital, 100 units of labor, and the efficiency of each worker is equal to 2. The effective number of workers for this economy is _____ and the capital per effective worker is _____.
50; 2
200; 1/2
50; 1/2
200; 2
The effective number of workers for this economy is 50 and the capital per effective worker is 2.
A. 50; 2.
How to Calculate the Capital Per Effective Worker?To calculate the effective number of workers, we need to divide the total amount of labor by the efficiency of each worker:
Effective number of workers = Total labor / Efficiency per worker
= 100 / 2
Effective number of workers = 50
To calculate the capital per effective worker, we need to divide the total amount of capital by the effective number of workers:
Capital per effective worker = Total capital / Effective number of workers
= 100 / 50
= 2
Therefore, the effective number of workers for this economy is 50 and the capital per effective worker is 2.
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Analyse the potential consequences of unresolved conflict within a team.
Answer:
Unresolved conflict within a team can have various negative consequences for the team members, the team leader, and the organization as a whole1234. Some of these consequences are:
Reduced morale and motivation: Conflicts affect the emotional and psychological well-being of team members. If conflicts remain unresolved, then employees naturally feel stressed out and unable to focus on their job. When conflicts linger on for longer periods of time, then employees feel uncertain about their role and the future. This mental state is the main cause of their low morale and motivation.Poor communication and collaboration: Conflicts create barriers and distrust among team members. They hinder effective communication and information sharing, which are essential for teamwork and innovation. Conflicts also reduce the willingness and ability of team members to cooperate and coordinate with each other, resulting in inefficiency and errors.Decreased performance and productivity: Conflicts distract team members from their core tasks and goals. They consume time and energy that could be otherwise spent on productive work. Conflicts also impair the quality and quantity of work output, as team members may avoid or sabotage each other’s efforts. Conflicts can also lead to missed deadlines, wasted resources, and lost opportunities.Increased turnover and absenteeism: Conflicts create a hostile and unpleasant work environment for team members. They may cause employees to feel dissatisfied, frustrated, or burned out with their job. This may lead them to seek alternative employment or quit altogether. Conflicts may also cause employees to take more sick leaves or avoid coming to work altogether, which affects the availability and continuity of the team.Damaged reputation and customer service: Conflicts can affect the external image and reputation of the team and the organization. They can damage the relationships with customers, clients, partners, or stakeholders, who may perceive the team as unprofessional, unreliable, or incompetent. Conflicts can also affect the quality and timeliness of customer service, as team members may be less responsive, courteous, or helpful to customersUnresolved conflicts within a team can lead to several negative consequences such as:
Decreased productivity, lower morale, loss of trust ,increased turnover, damage to relationships ,missed opportunities.
-Unresolved conflicts can cause tension and distractions, which can decrease productivity and disrupt the work environment.
-Conflicts can lower team morale and create an atmosphere of negativity, which can lead to reduced job satisfaction and motivation.
-Conflicts can cause team members to lose trust in one another, which can make it difficult for them to work together effectively.
-Conflicts can distract team members from important opportunities and prevent them from reaching their full potential.
Therefore, these are the consequences of unresolved conflicts within a team.
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Determine the missing amount:
Assets=Liabilities+owners Equity x 272000 573000
Based on the given amounts of assets and liabilities, the missing amount of Owner's equity is $301,000
How to find the equity?The Owners equity is one of the parts of the Accounting equation which is:
Assets = Liabilities + Owners Equity
The Assets in this instance is $573,000 and the Liabilities are $272,000.
The Owner's equity is the missing amount and it can be found as:
573,000 = 272,000 + Owners Equity
Owners Equity = 573,000 - 272,000
Owners Equity = $301,000
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PLEASE ANSWER FAST
A film editor’s job requires artistic vision and adaptability.
A. True
B. False
Determine the capital using the following information Assets = 27000 Kuh. liabilities ksh 9000
The capital using the following information Assets = 27000 Kuh is 18000 cash.
We can apply the accounting formula Assets = Liabilities + Capital to calculate the capital based on the available data. We can find the capital by rearranging the equation and deducting liabilities from assets.
What are assets and liabilities?A company's assets are any possessions that have the potential to provide future financial gain. Your debts to other people are called liabilities. In other words, assets increase your wealth while obligations decrease it.
Capital is calculated as assets minus liabilities.
Inputting the values provided yields:
Capital = 27000 - 9000 Kenyan Kwacha
If we simplify, we get: 18000 cash is the capital.
Hence, based on the information provided, the company's capital is 18000 Ksh. After deducting all liabilities and assets, this sum symbolizes the money that the company's owners have contributed to it.
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You have been hired as a strategic planning consultant to Acre Pizza, a regional chain of outdoor dining pizza restaurants. Acre Pizza is deciding whether or not to outsource home deliveries to third parties such as GrubHub, DoorDash, or UberEats. What would be the biggest drawback of outsourcing this value chain activity
Given that the company is deciding to outsource or not to outsource, the greatest setback that they would experience would be:
Acre Pizza loses flexibility in accommodating its delivery partners with just-in-time orders.What is outsourcing?This is a business practice that a lot of organizations engage in. It is the practice of hiring people or companies outside their organizations to handle certain operations.
Outsourcing this job is going to prevent the business from having full control over the deliveries.
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1. Assume two countries (Portugal & Britain) each produce wine and cloth. Given the following details with respect to resources required to produce each good in each country, answer the following questions. b. a. What is the opportunity cost of producing each good in each country? (4 Points) Draw the Production Possibilities Frontier for each country assuming no trade and 500,000 labor hours (use wine as the x-good). (10 Points) Provide an interpretation of the slope of the PPF in this example (8 Points) If these countries engaged in international trade, in what range would the relative prices have to be to ensure mutually beneficial trade, and which good would each country specialize in? (10 Points) e. Assuming the relative price with trade of wine is 0.67 cloth and the relative price of cloth is 1.48 wine, calculate the gains from trade and show on the PPFs the expanded consumption choices for each country. (16 Points) c. d. Country Production (1 Hour of Labor Time) Cloth Wine Portugal 2.85 Britain 3.4 5.3 4.2
a. The opportunity cost of producing wine in Portugal is 0.35 units of cloth, and the opportunity cost of producing cloth in Portugal is 2.85 units of wine.
b. The slope of the PPF represents the opportunity cost of producing one good in terms of the other. In this case, the slope of Portugal's PPF is -0.35, and the slope of Britain's PPF is -0.71.
c. If these countries engaged in international trade, the relative prices of wine and cloth would have to be within the range of Portugal's opportunity cost of producing wine (0.35 units of cloth) and Britain's opportunity cost of producing wine (0.71 units of cloth).
d. Assuming the relative price with trade of wine is 0.67 cloth and the relative price of cloth is 1.48 wine, then Portugal would specialize in producing wine and Britain would specialize in producing cloth. Portugal would export wine and import cloth, and Britain would export cloth and import wine.
How to explain the informationIf the relative price of wine were below 0.35 units of cloth, then Portugal would be able to produce wine more cheaply than Britain, and it would not be in Portugal's interest to trade. If the relative price of wine were above 0.71 units of cloth, then Britain would be able to produce wine more cheaply than Portugal, and it would not be in Britain's interest to trade.
The gains from trade are the increase in consumption that countries experience after they specialize and trade. In this case, the gains from trade are represented by the shaded area in the graph. The gains from trade are a result of the increased efficiency that is possible when countries specialize in the production of goods that they have a comparative advantage in.
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The A - B - C rule stands for all business consolidated rule true or false?
Answer:
FALSE!
Explanation:
Where is the Apple Pay Cash recipients money stored
On the following graph, use the green point (triangle symbol) to plot the weekly total revenue when the market price is $50, $75, $100, $125, $150, $175, and $200 per scooter.
Total Revenue
0
25
50
75
100
125
150
175
200
225
250
275
300
325
8700
8100
7500
6900
6300
5700
5100
4500
3900
3300
TOTAL REVENUE (Dollars)
PRICE (Dollars per scooter)
According to the midpoint method, the price elasticity of demand between points A and B is approximately .
Suppose the price of scooters is currently $200 per scooter, shown as point A on the initial graph. Because the demand between points A and B is , a $25-per-scooter decrease in price will lead to in total revenue per week.
In general, in order for a price decrease to cause a decrease in total revenue, demand must be .
The weekly total revenue given the market price is attached.
How to explain the informationAt point B: P1 = $125 and Q1 = 70
At point A: P2 = $150 and Q2 = 60
PED between point A and B = ?Q/?P *( P1 + P2 / Q1 + Q2)
= (60 - 70) / (150 - 125) * (125 + 150) / (70 + 60)
= (-10 / 25) * (275 / 130)
= -0.85
The absolute value is 0.85. Since PED is less than 1, demand is inelastic.
According to the midpoint method, the price elasticity of demand between points A and B is approximately 0.85.
Suppose the price of bippitybops is currently $125 per bippitybop, shown as point B on the initial graph. Because the price elasticity of demand between points A and B is inelastic, a $25-per-bippitybop increase in price will lead to increase in total revenue per day.
In general, in order for a price decrease to cause a decrease in total revenue, demand must be inelastic.
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g Thomas Franklin claimed an additional $3,000 in deductions he knowingly knew he did not qualify for so he could reduce his tax bill. This is referred to as tax:
A tax evasion has occurred when Franklin claimed an additional $3,000 in deductions knowingly that he did not qualify for reduction in his tax bill.
What is a tax evasion?A tax evasion is seen as a crime/offense because the taxpayer defaults in tax filing either by refusal in payment of tax or deduction from normal tax.
In conclusion, a tax evasion has occurred when Franklin claimed an additional $3,000 in deductions knowingly that he did not qualify for reduction in his tax bill.
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How do your habits differ from when you started this course?
When individuals start a course, their habits may differ from later stages. Over time, common changes in habits occur.
How habits may differFirstly, individuals may initially struggle with time management, finding it challenging to allocate sufficient hours for studying and completing tasks.
However, as the course progresses, they develop better time management skills and create structured study schedules. Secondly, at the beginning of the course, individuals may not have a well-established study routine.
As they advance, they often develop a consistent study routine that suits their learning style, helping them stay organized and focused. Lastly, individuals may initially feel excited and motivated about the course. However, as time goes on, they may face challenges or experience periods of lower motivation. Thus, it becomes important to develop strategies to maintain engagement and motivation throughout the course.
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Lead Was Once Used in Makeup
Answer:
I DIDN'T UNDERSTAND IS IT FUN FACT OR A YOU'RE TRYING TO ASKQUESTION ?The Montgomerys borrowed $107,000 at 7.50% for 30 years to purchase a house. Find the total interest the Montomerys will pay if they pay the loan on schedule. Click the icon to view the monthly payment of principal and interest table. OA. $162,254.80 OB. $149, 158.00 OC. $177,662.80 OD. $168,803.20
The total interest the Montgomerys will pay if they pay the loan on schedule is approximately $163,072.
To find the total interest the Montgomerys will pay over the course of the loan, we can calculate the monthly payment and then subtract the principal borrowed.
First, we need to calculate the monthly payment using the loan amount, interest rate, and loan term. We can use the formula for calculating the monthly payment on an amortizing loan:
Monthly payment =\(P * r * (1 + r)^n / ((1 + r)^n - 1)\)
Where:
P = Principal amount borrowed = $107,000
r = Monthly interest rate = Annual interest rate / 12 = 7.50% / 12 = 0.625%
n = Total number of payments = 30 years * 12 months/year = 360 months
Plugging in the values, we have:
Monthly payment = $107,000 * 0.00625 * (1 + 0.00625)^360 / ((1 + 0.00625)^360 - 1)
≈ $750.20
The monthly payment of principal and interest is approximately $750.20.
To find the total interest paid, we can multiply the monthly payment by the total number of payments and subtract the principal borrowed:
Total interest paid = (Monthly payment * Total number of payments) - Principal borrowed
= ($750.20 * 360) - $107,000
≈ $270,072 - $107,000
≈ $163,072
Therefore, the total interest the Montgomerys will pay if they pay the loan on schedule is approximately $163,072.
None of the provided answer options match the calculated value. However, based on the calculation, the closest option is OA. $162,254.80.
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What would happen if I were to buy a truck for $50,000 and expense all of it during that period, rather than handle it the way the book recommends? What would it do to my Income Statement and Balance Sheet?
Answer:
Income from operation will decrease by $50,000
Explanation:
given data
inventory of a manufactured = 5,000 units
to find out
effect on income from operations
solution
as we know that in the absorption costing both variable cost and fixed cost are included in the cost of production
so that as under variable costing only the variable manufacturing cost are included in the cost
and
if absorption costing is used the inventory level that will be increased by10 × 5000 = $50,000
so Income from operation will decrease by $50,000
so correct option is c.$50,000 decrease
Balance sheet as what that might be will indeed be underestimated. A further explanation is provided below.
A $50,000 automobile has been purchased. This is a level of investment. Throughout acquisition, it should not be recognized as an expense. Yearly trucking depreciation would be to be determined employing the truck's anticipated lifespan.
Depreciation costs, therefore, should have been computed annually and should be reported throughout the statement of financial position. The truck must be reflected minus cumulative depreciation at such market rates somewhere in the accounting records. If somehow the truck gets charged for the purchasing year as well, then the operating earnings of the reporting quarter of the company would decrease dramatically.The truck wouldn't have been reflected on the balance sheet even though it stated at the cost the year of the acquisition.So the preceding response is correct.
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7 the follow table contains the demand from the last 10 months :
Explanation:
Month Actual Demand Month Actual Demand
1 31 6 36
2 34 7 38
3 33 8 40
4 35 9 40
5 37 10 41
Show Work and answer the following:
a.) calculate the single exponential smoothing forcast for these data using a of .30 and an initial forecast ( F1) of 31.
b.) calculate the exponential smooting with trend forecast for these data using an a of .30, & of .30, and an initial trend forecast ( T1) of 1, and an initil exponentailly smoothed forecast F1 of 30,
c.) calculate the mean absolute deviation (MAD0 for each forecast
hey honey buches wuv you all <3 *nuzzels nose* UwU
Answer:
aw ty
Explanation:
Nash's Trading Post, LLC uses the percentage-of-receivables basis to record bad debt expense and concludes that 3% of accounts receivable will become uncollectible. Accounts receivable are $439,700 at the end of the year, and the allowance for doubtful accounts has a credit balance of $3,041. (a) Prepare the adjusting journal entry to record bad debt expense for the year. (b) If the allowance for doubtful accounts had a debit balance of $918 instead of a credit balance of $3,041, prepare the adjusting journal entry for bad debt expense.
Answer:
Provision = $439700*3% = $13,191
Bad debts expense = $13,191 - $3,041 = $10150
Journal entries
Particulars Debit Credit
a) Bad debts expenses $10,150
Allowance for doubtful accounts $10,150
(To record Bad debt exp )
b) Bad debts expenses (13191+918) $14,109
Allowance for doubtful accounts $14,109
(To record bad debts expenses)
QUESTION 82
Lucent Technologies is considering a project that has the following cash flow and WACC data.
a) Determine the project's NPV.
b) Decide whether IRR or MIRR is appropriate for this problem. Explain which of these you chose and determine the value.
c) Given your solutions for a & b, advise management to accept or reject the project by making the appropriate comparisons.
7.45%
WACC:
Year
Cash flows
0
-$32,600 $15,000 $17,000
$13,000
-$4,000
a) the NPV of the project is $3,573.36. b) the MIRR of the project is 5.94%.
c) the positive NPV of $3,573.36 and the MIRR of 5.94%, it is advisable for the management to accept the project.
a) To calculate the NPV of the project, we need to discount the future cash flows to their present value using the weighted average cost of capital (WACC) of 7.45%.
Year 0 cash flow: -$32,600
Year 1 cash flow: $\(15,000 / (1 + 0.0745)^1\) = $13,947.74
Year 2 cash flow: $\(17,000 / (1 + 0.0745)^2\) = $14,377.64
Year 3 cash flow: $\(13,000 / (1 + 0.0745)^3\) = $10,748.23
Year 4 cash flow: -$\(4,000 / (1 + 0.0745)^4\) = -$2,900.25
NPV = -$32,600 + $13,947.74 + $14,377.64 + $10,748.23 - $2,900.25 = $3,573.36
Therefore, the NPV of the project is $3,573.36.
b) The IRR (Internal Rate of Return) and MIRR (Modified Internal Rate of Return) are both methods used to evaluate the attractiveness of an investment opportunity. The IRR is the discount rate that makes the NPV of the project equal to zero, while the MIRR is the discount rate that equates the present value of cash inflows to the future value of cash outflows.
In this case, since the project has non-conventional cash flows (negative initial cash flow followed by positive cash flows and then a negative cash flow), the IRR approach may lead to multiple IRR values, making it unreliable. Therefore, MIRR is more appropriate for this problem.
To calculate MIRR, we need to find the future value of the initial outflow, and the present value of all future inflows, then find the discount rate that equates these values.
Future value of the initial outflow: -$ = -$41,670.92
Present value of future inflows: $15,000 + $17,000 + $13,000 - $4,000 = $41,000
MIRR = [(41,000 / 41,670.92)^(1/4)] - 1 = 5.94%
Therefore, the MIRR of the project is 5.94%.
c) Based on the positive NPV of $3,573.36 and the MIRR of 5.94%, it is advisable for the management to accept the project. The positive NPV indicates that the project's inflows exceed the outflows, generating value for the company, while the MIRR of 5.94% is higher than the cost of capital of 7.45%, indicating that the project is expected to provide returns that are higher than the required rate of return.
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Elaborate on two instances at the workplace where "silence is golden " may be applicable.
Answer:
It could be applicable when there is a negative compliment: When this happens it is best and advisable to be silent about it and continue with the work activities. Negative compliments are usually hurtful to the recipients and tempers may flare up if words are exchanged.
It could also be applicable when important informations are passed during meetings: Some meetings at work requires dissemination of information with various steps in accomplishing them. If an individual isn’t silent and pays less attention, a step may be missed and will make the worker being unable to perform the task.
if grayson manufacturing incurred $17,400 for direct labor in the assembly department and $10,300 for direct labor in the painting department, the journal entry to record the labor used is:
The given statement is false. Manufacturing costs are the costs caused during the production of a product. These costs incorporate the costs of direct material, direct labor, and manufacturing above.
manufacturing incurred = $17,400
for direct labor = $10,30
$17,400 + $10,300 = $27,600
The costs are normally introduced in the pay explanation as isolated details. An element causes these costs during the production interaction.
Direct material is the materials utilized in the development of a product. Direct labor is that portion of the labor cost of the production cycle that is doled out to a unit of production. Manufacturing above costs are applied to units of production in light of an assortment of conceivable portion frameworks, for example, by direct labor hours or machine hours caused. Instances of the sorts of costs that can be remembered for manufacturing above include:
Compensations and wages for quality affirmation, modern designing, materials dealing with, factory management, and equipment support staff
Equipment fix parts and supply
Factory utilities
Deterioration on factory resources
Factory-related insurance and local charges
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the complete question is:
If Grayson Manufacturing incurred $17,400 for direct labor in the assembly department and $10,300 for direct labor in the painting department, the journal entry to record the labor used is:
$17,400 + $10,400 = $27,700
(T/F)
For most consumers, term life insurance is considered to be the:
O worst option
O same cost as term
O most expensive
O best value
For most consumers, the term life insurance is considered to be worst option.
What is a term life insurance?A sort of death benefit that pays the policyholder's heirs over a predetermined length of time is term life insurance, commonly referred to as pure life insurance. The owner of the term life insurance policy has three options after the term has ended: renewing it for a new term, changing it to permanent protection, or letting the policy lapse. The premium for term life insurance is established by the insurance provider based on the value of the policy (the payout amount), as well as your age, gender, and general health. A medical examination could be necessary in several situations. Your driving history, current medications, whether you smoke, your work, your hobbies, and your family history may all be requested by the insurance provider.
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Which plan has the highest total amount paid? How long is the repayment period for this plan?
what link-building strategy do search engines implicitly approve?
The link building strategies that the search engines are known to have to approve of implicitly would be the
Nofollowthe sponored links attributesWhat is meant by the link building strategies?This is the term that is used to refer to the practice that has to do with the ways that the one way hyperlinks can be built. This is usually done through the use of the website that had to have the goal of helping to get visibility through the use of search engines.
The strategies that are used are the ones that have to do with content writing, the ones that have to do with useful tools and those that have to do with the outreach that is done with the use of mails.
The other ways that this can be done would be through the use of the social media outreach. Hence the links that they would use implicitly would have to do with the nofollow links etc.
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Alpha Company uses its sales invoices for posting perpetual inventory records. Inadequate control activities over the invoicing function allow goods to be invoiced that are not shipped. The inadequate control activities could cause an Group of answer choices Understatement of revenues, receivables, and inventory. Overstatement of revenues and receivables and an understatement of inventory. Understatement of revenues and receivables and an overstatement of inventory. Overstatement of revenues, receivables, and inventory.
Answer:
Overstatement of revenues and receivables and an understatement of inventory.
Explanation:
Invoicing in different occasions could be done for the case of inventory and reference purposes in the hands of both the salesman and buyer. Therefore on the case above, inadequate control could possibly cause overstatement of revenues and receivables and an understatement of inventory. It is also been observed that the sales invoice provides the seller with a record of what has been sold, whether the said transaction has been carried out or not and how much money is involved. This information is useful for internal company records and also to follow up with buyers for billing purposes.
How is tourism going to relief poverty in South Africa?
Explanation:
As efforts to "make poverty history" build in the West ahead of the G8 summit, and the UK-sponsored Commission for Africa raises the continent in the British public's consciousness, tourism may be one of the ways in which development can be attained.
ADUWERE is fast growing profitable company. The company is situated in Iringa, Tanzania. Its sales are expected to grow about three times from TZS 360 million in 2022-2023 to TZS 1,100 million in 2024-2025. The company is considering of commissioning a 35 km pipeline between two areas to carry gas to TANESCO. The project will cost TZS 250 million. The pipeline will have a capacity of 2.5 MMSCM. The company will enter into a contract with TANESCO to supply gas. The revenue from the sale to TANESCO is expected to be TZS 120 million per annum. The pipeline will also be used for transportation of LNG to other users in the area. This is expected to bring additional revenue of TZS 80 million per annum. The company management considers the useful life of the pipeline to be 20 years. The financial manager estimates cash profit to sales ratio of 20% per annum for the first 12 years of the project’s operations and 17% per annum for the remaining life of the project. The project has no salvage value. The project being in a backward area is exempt from paying any taxes. The company requires a rate of return of 15% from the project. Required: 1. What is the project’s payback and return on investment (ROI) 2. Compute project’s NPV and IRR Should the project be accepted? Why?
1. Therefore, the ROI for the project is:ROI = (TZS 1,660 million / TZS 250 million) x 100% = 664%The ROI of the project is 664%.
2. The project should be accepted as the NPV is positive and the IRR is higher than the required rate of return of 15%.
1. Payback period is defined as the duration within which the initial investment made in the project is recovered by the cash inflows that it generates. It is an important capital budgeting tool for measuring the length of time a project will take to recoup the initial investment. Payback period = Initial investment ÷ Net annual cash inflows
The initial investment made by ADUWERE is TZS 250 million.
The net annual cash inflows are calculated as:
Net annual cash inflow = Revenue from TANESCO + Additional revenue from LNG – Operating costs – Maintenance costs
Revenue from TANESCO = TZS 120 million.
Additional revenue from LNG = TZS 80 million
Operating costs = 0.20 * TZS 360 million = TZS 72 million
Maintenance costs = (250/2000)*TZS 360 million = TZS 45 million
Net annual cash inflow = TZS 83 million.
Therefore, the payback period of the project is:Payback period = TZS 250 million ÷ TZS 83 million = 3.01 years. The project has a payback period of 3.01 years. This means that the initial investment made by ADUWERE in the project will be recovered within 3.01 years. Since the useful life of the pipeline is 20 years, this indicates that the project is acceptable.
ROI = (Total net cash inflow / Initial investment) x 100%The total net cash inflow for the project is calculated as:
Total net cash inflow = Net annual cash inflow x Useful life
Total net cash inflow = TZS 83 million x 20 = TZS 1,660 million
Therefore, the ROI for the project is:ROI = (TZS 1,660 million / TZS 250 million) x 100% = 664%.
The ROI of the project is 664%. This indicates that the project is acceptable as the ROI is higher than the required rate of return of 15%.2. Net Present Value (NPV) is the difference between the present value of cash inflows and the present value of cash outflows. NPV = ∑ (Cash inflows / (1 + r)t) – Initial investment
Where,r = Required rate of returnt = Time periodThe NPV of the project is:NPV = (TZS 83 million / (1 + 0.15)1) + (TZS 83 million / (1 + 0.15)2) + … + (TZS 83 million / (1 + 0.15)20) – TZS 250 millionNPV = TZS 505.6 millionIRR or Internal Rate of Return is defined as the rate at which the net present value of the cash inflows is equal to the net present value of cash outflows.
In other words, it is the discount rate that equates the present value of cash inflows with the present value of cash outflows. The IRR of the project can be determined by trial and error method or by using Excel’s IRR function.Using Excel’s IRR function, we get IRR = 47.95%The project should be accepted as the NPV is positive and the IRR is higher than the required rate of return of 15%.
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1. Some businesspeople believe that elimination agents and wholesalers reduce their operating expenses. Discuss the opportunity costs associated with eliminating intermediaries.
1. While eliminating intermediaries may result in reduced operating expenses, businesses need to weigh these savings against the associated opportunity costs. These costs may include the loss of expertise and value-added services, additional responsibilities and expenses, and reduced customer access to products.
Eliminating intermediaries such as elimination agents and wholesalers reduce operating expenses, but it also has associated opportunity costs that businesses need to consider. One of the primary costs is the loss of the expertise and value-added services that intermediaries offer to businesses and customers. Eliminating intermediaries may result in businesses taking on additional responsibilities and expenses such as marketing, distribution, and logistics.
This may result in the need for additional staff and resources to ensure that products reach customers on time. Furthermore, eliminating intermediaries may also result in reduced customer access to products, as intermediaries are often responsible for finding new markets and customer segments. In this case, businesses may need to invest additional resources to market and promote their products to reach new customers.
In conclusion, while eliminating intermediaries may result in reduced operating expenses, businesses need to weigh these savings against the associated opportunity costs. These costs may include the loss of expertise and value-added services, additional responsibilities and expenses, and reduced customer access to products.
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Planning to finance higher education helps people prepare for their financial future because it teaches them about.......
a.) funds management and loans
b.) their educational options
c.) the real world
d.) meeting short term goals