Plan B’s capital requirements are $45,000,000, annual fixed costs of $4,800,000 and variable costs of $3,000 per unit. Looking at the ROI for Plan B on the attached sheet, we see that it ranges from 28.2% in the most likely scenario to 56% in the most optimistic scenario. Since both plans are nearly identical in their projected returns, deciding which one to choose becomes a decision on initial risk versus lower variable costs. Plan A is the recommended choice in this executive summary. The start-up capital required is $5,000,000 lower than Plan B.
However, even with these additional costs, net profit under level production is projected to be $520K, which is a 48% increase over the seasonal production estimate of $351K. Debt - Seasonal Production Seasonal production does not have the cash flow issues that occur under level production. The cost of level production of finished goods will be $543K each month; sales from January to July
The budget variance C. Investment assets D. Current assets 2) A family with $45,000 in assets and $22,000 of liabilities would have a net worth of A. $23,000 B. $45,000 C. $67,000 D. $22,000 3) A budget deficit would result when a person's or family's A. actual expenses are less than planned expenses B. net worth decreases C. assets exceed liabilities D. actual expenses are greater than planned expenses 4) The tax base for an individual tax return is A. gross income B. realized income from whatever source derived C. adjusted gross income minus from AGI deductions D. adjusted gross income 5) All of the following are for AGI deductions EXCEPT A. rental and royalty expenses B. moving expenses C. charitable contributions D. business expenses 6) Which of the following series of inequalities is generally most accurate? A. Adjusted gross income is greater than or equal to gross income which is greater than or equal to taxable income B.
Hence theAverage inventory comes out to $239mn, which is almost $200mn less than thecompetitions average of $436mn for the same amount of COGS. Q2: How did Dell fund its 52% growth in 1996? When we compare Dell’s performance in 1996 as compared to 1995, the Sale grewfrom $3475 to $5296 reporting a growth of 52.4%. However, the total assets in 1995were $1594 i.e. 46% of sales and operating assets were total asset less short-terminvestment i.e.
* Cost of Equity: * Beta: she used the average beta of the last 5 years, which is also acceptable. However, we decide to use the Bayesian beta calculated with the firm’s present beta as a measure of the future beta assessing for future risk. * Risk-free rate: from the investor’s perspective, we conclude that a 10-year holding period would be more realistic estimate than 20-year. Therefore, we decide to use 10-year U.S. Treasury yield as our risk-free rate in this case. * Risk premium: using the geometric mean from 1926 to 1999 might be problematic, since the risk premium of recent decades is obviously lower than earlier (stated in the lecture).
For example, if 50% of the errors for a specific item category, i.e. the A/F ratios, fell between 0.8 and 1.2 in the past years, then the company assumes that with a probability of 0.5, the error for an item belonging to this specific category will fall between 0.8 and 1.2 this coming year. For a new item that has not any past data, there is a part of judgement from the people in charge of forecast. They will look at the demand generated by this new item: if the demand is incremental then they have to approximate new figures, but if it is not then they have to take in account of much demand it will steal from other items. 2.
That is, if one is true, the other must be false. Formulate an analysis plan. The analysis plan describes how to use sample data to evaluate the null hypothesis. The evaluation often focuses around a single test statistic. Analyze sample data.
When administering the test, the required standardized conditions and concerns with test bias is also included. Standardized Psychological Test Standardized psychological tests are designed to measure or ascertain such characteristics of an individual’s or group as intellectual capacity, motivation, perception, role behavior, values, and general personality integration (“Psychological Test,” 2012). Industrial
China’s current economic growth occurs mostly in its urban centers. In the vast rural areas where 807 million people, 61.6% of China’s population reside, economic progress has come at a relatively slow pace. In 2005, China’s primary industry output grew 5.2% in value, while the secondary industry and the service industry grew at 11.4% and 9.6% respectively. This indicates there has been an increase in the income disparity between the urban and rural populations. According to official statistics, the annual disposable income per capita in 2004 was 9422RMB in urban areas, and 2936RMB per capita in rural areas, creating an urban/rural income ratio of 3.21:1.
But the latest United Nations projection puts the figure at little more than a quarter of that - less than 11 billion. That's still 50% more than we have today, but it shows the UN expects much slower population growth in the decades to come than in decades gone by. Some might consider that an increase in the world population from seven billion to 11 billion by 2100 still represents out-of-control population growth. But this UN figure - contained in its World Population Prospects, published every two years - is considered by one expert, at least, to be much too