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A: WACC: The weighted average cost of capital- Is the firm's total cost of capital. This ratio takes…
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A: * SOLUTION :- The value of X is = -$199.24 The value of Y is = 2.20% The value of z is = -$76.03
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A: Since there are 4 projects, so number of possible bundles = 24 16, there would be 16 possible bundle…
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A: Project risk is directly associated with MARR. If the risk is higher, then MARR value would be…
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A: Given risk free rate = 3 % Market risk premium = 8 % Beta = 0.5
Q: Which of the following statements is correct? O a. MARR is set higher than the WACC b. MARR is set…
A: Note: We will answer one question as the exact one was not specified. Please resubmit a new question…
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A: Answer a) The following calculation is done to calculate IRR
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A: since you have asked multiple questions and according to our policy we can solve only the first one…
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A: 1. Project -A Net Present Value ( N.P.V) for 6 years period PVAF ( 12% , 6 Yrs ) = 4.111% Now,…
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Refer to the associated graph. Identify when the WACC approach to project acceptability agrees with the
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- True/False AVC can fall even when MC is risingGiven f (x, y) - 4x? + 6xy – 5y² df(x,y) What is dxThe ore of a gold mine in the province contains, on average, 0.5 ounce of gold per ton. Method A ofprocessing costs 150Php/ton and recovers 93% of the gold, while Method B costs only 120Php/tonand recovers 81% of the gold. If gold can be sold at 1,200/ounce, which method is better and by howmuch?a. Method A, by 43Phpb. Method A, by 42Phpc. Method B, by 42Phpd. Method B, by 43Php
- Agamble based on a fair coin toss which pays $6.65 if the coin lands heads and $9.85 if the coin lands tails. (fair coin toss i.e. probability of heads is 50% = probability of tails is 50%) EV $8.25 E[U(w)) UJEV] >_U(EV) Low EU = U(EV) Neutral EU =_U(EV) Neutral u(w) w" 624.81 $ 561.51 u(w) 125+w 136.25 $ 136.25 u(w) Sin(w) 10.50 $ 10.50 Arisk agent, whose utility is given by U(w) = 5In(W) and initial wealth is $5,000 is faced with a potential loss of $3,800 with a probability of p=0.17. What is the maximum premium they would be willing to pay to protect themselves against this loss? risk appetite (wייט EV intial wealth EU 41.37 5,000 U(w-y) = E[U(w)] 5In(5,000-y)=B17 find y y= $ 1,077.13 If you are given the opportunity to buy insurance for $500 alt y= would you take the insurance? Utility functions w>0 u(w) w-9w u(w) 5In(w) u'(w) u'(w) u"(w) u"(w) A'(w) :>,,,,<=0 show your work A(w) Alw) A'(w) A'(w) R(w) R(w) R'(w) R'(w)ANSWER THE FF SHOW YOUR COMPLETE SOLUTION:Please show full solution
- Your firm uses a continuous review system and operates52 weeks per year. One of the SKUs has the followingcharacteristics.Demand 1D2 = 20,000 units>yearOrdering cost 1S2 = $40>orderHolding cost 1H2 = $2>unit>yearLead time 1L2 = 2 weeksCycle@service level = 95 percentDemand is normally distributed, with a standard deviation ofweekly demand of 100 units.Current on-hand inventory is 1,040 units, with no scheduledreceipts and no backorders.a. Calculate the item’s EOQ. What is the average time, inweeks, between orders?b. Find the safety stock and reorder point that provide a95 percent cycle-service level c. For these policies, what are the annual costs of (i) holdingthe cycle inventory and (ii) placing orders?d. A withdrawal of 15 units just occurred. Is it time to reor-der? If so, how much should be ordered?Auria will produce a venicle component and knows that each start generates a cost of 5,000 pesos. Its production capacity is 150,000 units and the cost per unit is $ 200, tne annual demand is 100,000 units, and the inventory rate is 15% per month. Consider that the product allows shortages and the cost of goodwill loss is $ 0.3 for each unit of said items, while the penalty cost if they do not deliver is S 30 / unit / year. a) Calculate the total annual cost and the quantity Q required.A company produces and sells a consumer product and is ableto control the demand by varying the selling price. The approximate relationship between price and demand is p = 38+ (2,700/D) - (5000/D²) for D>1 The company is seeking to maximize its profit. The fixed cost is $1,000 and the variable cost is $ 40 per unit. What is the number of units that should be produced and sold each month to maximize profit? A 71 B 60 с 50 D 25
- An automobile spare part is sold for $15 per unit. The VC are $3 per unit, 15000 units of the product are sold annually and a profit of $80,000 is made. The change to be made in the design of the product will increase the VC by 20% and the FC by 10%, and the sales amount will increase to 18000 units. a) At what selling price do we break even? b) What is the annual profit when the selling price remains the same ($12/unit)?What can you say about negative and positive gross margin in sensitivity analysisY 0 500 1000 1500 2000 2500 3000 3500 4000 C 200 600 1000 1400 1800 2200 2600 3000 34000 S -200 -100 0 100 200 300 400 500 600 a) S= -200Y. b) C = -200 + Y. c) C =-200+ 0.2Y. d) C = -200 + 0.8Y. e) C = 200+ 0.8Y. I 200 200 200 200 200 200 200 200 200 G 500 500 500 500 500 500 500 500 500 X 400 400 400 400 400 400 400 400 400 IM 100 150 200 250 300 350 400 450 500 XN AE 1. Refer to the data above to answer this question. What is the equation for the saving function? 2. Refer to the data above to answer this question. What is the equation for the net export function? a) AN = 300. b) XN = 400 - 300Y. c) XN = 300 - 50Y. d) XN = 300 + 0.1Y. e) AN= 300 -0.1Y.