effect on the company’s total fixed manufacturing overhead costs. The customer would like some modifications made to product R34 that would increase the variable costs by $6.00 per unit and that would require a one-time investment of $37‚000 in special molds that would have no salvage value. This special order would have no effect on the company’s other sales. The company has ample spare capacity for producing the special order. | Required: | Determine the effect on the company’s total net operating
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submitted in partial fulfillment of requirements for the degree of International MSC in Business Administration‚ at Universidade Católica Portuguesa‚ September‚ 2012 I. Preface The goal of this dissertation is to value Cimentos de Portugal‚ SGPS‚ S.A‚ hereon stated as Cimpor. In order to do that‚ the main valuation methods and theories will be reviewed and consequently applied to deliver an investment recommendation regarding FY2012 stock price. The structure of
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on a particular project will be profitable. This report is able to present the weakness and strength of the techniques according to the wind turbine system project of McCain Foods Company. Payback Period‚ Average Rate of Return (ARR)‚ Net Present Value (NPV) and Internal Rare of Return (IRR) are used to figure out positive or negative about this project. The McCain Foods decides to invest to wind turbine system through using these investment appraisal techniques. Consequently‚ the recommendations
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institutions offer a sabbatical policy. Every seven years a professor is given a year free of teaching and other administrative responsibilities at full pay. For a professor earning $70‚000 per year who works for a total of 42 years‚ what is the present value of the amount she will earn while on sabbatical if the interest rate is 6% (EAR)? Timeline: |0 |7 |14 | | | |42 | | | | | |
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Question 1 (a) Simons (1999‚ pg 768) describes intrinsic motivation as “desire to engage in behaviours or actions in anticipation of internally- generated rewards such as personal feelings of accomplishment” and extrinsic motivation Simons describes as (1999‚ pg 766) “desire to engage in behaviours or actions in anticipation of tangible rewards‚ such as money or promotion”. Extrinsic motivation is created by financial incentives. An incentive as Simons (1999‚ 767) describes as being “a reward
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flow use stable yield stocks.It is marginally increased so good for such investors. * Market value to book value ratio : DESCRIPTION | Mar-12 | Mar-11 | Mar-10 | Mar-09 | Mar-08 | P/B ratio | 4.45 | 5.51 | 5.92 | 2.93 | 5.47 | It shows the contribution of a firm to the wealth of the society.Lower ratio is bad indicator.Here ratio is 4.45 in this year.It shows valuation of stock.Lower value of P/B ratio could mean that it is undervalued.Since 2010 ‚It is improving.So it is good sign for
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Question 5 2 out of 2 points ._____Successful companies have been started by people who are not in it for the money. Answer Selected Answer: True Question 6 2 out of 2 points 6._____ Cost is the money and time you will have to invest –as well as the opportunities you will be giving up to start your business Answer Selected Answer: True Question 7 2 out of 2 points 7_____If you are able to find a sufficiently large niche
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Question 1 4 out of 4 points How much would Roderick have after 6 years if he has $500 now and leaves it invested at 5.5% with annual compounding? Answer Selected Answer: $689.42 Correct Answer: $689.42 Question 2 0 out of 4 points A $250‚000 loan is to be amortized over 8 years‚ with annual end-of-year payments. Which of these statements is CORRECT? Answer Selected Answer: If the loan were amortized over 10 years rather than 8 years‚ and
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7. The required rate of return includes the risk‑free rate and a risk premium. T 8. An increase in the risk‑free rate will tend to decrease stock prices. F 9. High P/E stocks should be preferred because they pay larger dividends. T 10. Value investors tend to prefer stocks with low price to sales and price to book ratios. F 11. The PEG ratio combines a stock’s earnings‚ price‚ and growth rate. T 12. The efficient market hypothesis suggests that the current prices of stocks reflect
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Question 1 (5 points) $100 today is worth the SAME as $100 tomorrow. Your Answer Score Explanation True False Correct 5.00 Correct. You understand time value Total 5.00 / 5.00 Question Explanation We have assumed that time value of money is positive. Question 2 (5 points) At an interest rate of 10% it is better to have $100 today than $120 in 2 years. Your Answer Score Explanation True Correct 5.00 Correct; it is compounding! False Total 5.00 / 5.00 Question Explanation All about compounding
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