The RMC Corporation blends three raw materials to produce two products: a fuel additive and a solvent base. Each ton of fuel additive is a mixture of 2/5 ton of material 1 and 3/5 ton of material 3. A ton of solvent base is a mixture of 1/2 ton of material 1, 1/5 ton of material 2, and 3/10 ton of material 3. RMC’s production is constrained by a limited availability of the three raw materials. For the current production period, RMC has the following quantities of each raw material: material 1, 20 tons; material 2, 5 tons; material 3, 21 tons. Management wants to achieve the following P1 priority level goals:
Goal 1: Produce at least 30 tons of fuel additive.
Goal 2: Produce at least 15 tons of solvent base.
Assume there are no other goals.
Is it possible for management to achieve both P1 level goals given the constraints on the amounts of each material available?
Raw Material Amount needed to Achieve Both P1 Goal
Treating the amounts of each material available as constraints, formulate a goal programming model to determine the optimal product mix. Assume that both P1 priority level goals are equally important to management. If you don't need the variable in the model, enter "0". If you need a negative number, enter minus sign with it. If necessary, enter the numbers as a common fraction.
Let x1 = the number of tons of fuel additive produced
x2 = the number of tons of solvent base produced
d1+ = the amount by which the number of tons of fuel additive produced exceeds the target value of 30 tons
d1- = the amount by which the number of tons of fuel additive produced is less than the target of 30 tons
d2+ = the amount by which the number of tons of solvent base produced exceeds the target value of 15 tons
d2- = the amount by which the number of tons of solvent base is less than the target value of 15 tons

Answers

Answer 1

Answer:

Goal 1: Produce at least 30 tons of fuel additive.

Goal 2: Produce at least 15 tons of solvent base.

Explanation:

Answer 2

To formulate the goal programming model, we need to set up the objective function and the constraints based on the given information. Let's define the decision variables and the deviation variables:

Decision variables:

Let x1 = the number of tons of fuel additive produced

Let x2 = the number of tons of solvent base produced

Deviation variables (amount by which the goals are exceeded or not met):

Let d1+ = the amount by which the number of tons of fuel additive produced exceeds the target value of 30 tons

Let d1- = the amount by which the number of tons of fuel additive produced is less than the target of 30 tons

Let d2+ = the amount by which the number of tons of solvent base produced exceeds the target value of 15 tons

Let d2- = the amount by which the number of tons of solvent base is less than the target value of 15 tons

Objective function:

Since both goals are equally important, we want to minimize the total deviations from the target values. The objective function is the sum of these deviations:

Minimize: Z = d1+ + d1- + d2+ + d2-

Constraints:

Material 1 constraint: The total material 1 used in producing fuel additive and solvent base cannot exceed the available 20 tons of material 1.

2/5 * x1 + 1/2 * x2 <= 20

Material 2 constraint: The total material 2 used in producing solvent base cannot exceed the available 5 tons of material 2.

1/5 * x2 <= 5

Material 3 constraint: The total material 3 used in producing fuel additive and solvent base cannot exceed the available 21 tons of material 3.

3/5 * x1 + 3/10 * x2 <= 21

Fuel additive production goal constraint: The fuel additive production should be at least 30 tons.

x1 + d1+ - d1- = 30

Solvent base production goal constraint: The solvent base production should be at least 15 tons.

x2 + d2+ - d2- = 15

Non-negativity constraints:

x1, x2, d1+, d1-, d2+, d2- >= 0

Now we have the complete goal programming model. The objective is to minimize the total deviations (d1+, d1-, d2+, d2-) from the target values while satisfying the material constraints and the production goals. The model can be solved using standard optimization techniques such as linear programming to find the optimal production mix.

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Related Questions

Match the terms with their definition. Budget surplus Budget deficit Balanced budget Government debt Answer Bank when government spending and taxes are equal when the federal government spends more than it collects in taxes in a given time period the total accumulated amount that the government has borrowed and not yet paid back over time when the government receives more in taxes than it spends in a given time period The federal estate and gift tax O was originally created in 2011. O is paid on certain commodities, such as gasoline or tobacco. O must be paid on even small gifts. is paid on property left as an inheritance when the owner dies. Estate and gift taxes as a percentage of GDP are between 2% and 3%. less than 1% about 20% 0%, since the tax was repealed. O

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A balanced budget is one in which the whole projected revenues and the total planned expenditures are equal in terms of financial planning or budgeting. The public sector (government) budgeting process is where this phrase is most frequently used.

Official government budgets are frequently referred to as having a "balanced budget." Governments might announce in a press release that their budget is balanced for the upcoming fiscal year, or politicians might vow to do so if they win power.

A balanced budget is frequently used in conjunction with the phrase "budget surplus." When revenues are more than expenses, a budget surplus is created, and the surplus amount is the sum of the two. In a business setting, a company can reinvest excess funds back into itself, for example, to cover costs associated with research and development, give them to staff as bonuses, or provide them to shareholders as dividends.

A budget surplus arises in a government setting when tax collections in a fiscal year outpace government spending. Since 1970, the US government has just four times produced a budget surplus. The incident occurred every year in a row between 1998 and 2001.

In contrast, a budget deficit occurs when spending exceed receipts. Due to the necessity of borrowing money to cover expenses, budget shortfalls always result in mounting debt. As an illustration, the national debt of the United States, which as of November 2020 totaled more than $27 trillion, is the product of decades-long budget deficits.

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it is cheaper for a cable company's customers to sign up for a package that includes cable, internet, and phone service than for them to purchase each of these services individually. this is an example of

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It is cheaper for a cable company's customers to sign up for a package that includes cable, internet, and phone service than for them to purchase each of these services individually. This is an example ofis an example of product-bundle pricing.

Purchasing is the technique that includes commercial enterprise or organization makes use of to acquire items or offerings to accomplish its dreams.

Although there are several agencies that try and set requirements for the shopping procedure, methods can range substantially among businesses.

Kind of purchases :

Private Purchases.Mercantile purchasing. Business shopping.

Purchasing is becoming a middle competency of the firm, locating and growing providers and bringing in expertise that is notably valued through the company. Buying is normally responsible for spending greater than 50 percent of all of the sales the firm receives as income from income.

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Out of Home advertising is unique in that it is probably the only media that: A. That targets local communities B. Can evoke emotion C. That can reach a wide audience D. That has 24 hour a day 7 days a week presence. E. Has stunning visuals

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Out of Home advertising is unique in that it is probably the only media (C) That can reach a wide audience.

What is outdoor advertising?

It is a means of dissemination of information that is done in public places through brochures, posters, billboards, among other elements. Outdoor advertising is of utmost importance since it allows providing news information or commercial advertisements in public places.

Outdoor advertising is used in public places, this makes it possible to spread information to a specific audience.

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after you finish giving a presentation, an audience member asks your team for additional information on your topic. your coworker is answering the question thoroughly, but you notice that the rest of your audience has tuned out. how can you re-engage your audience? select all that apply.

Answers

You might change to a different question or ask a new question of your audience if you notice that they are losing interest.

Describe Presentation.

A presentation is how a speaker communicates information to an audience. A presentation's typical goals include informing, persuading, inspiring, motivating, creating goodwill, or presenting a novel concept or service. Speeches, opening statements, lectures, and demonstrations can all be included in presentations. For presentations, preparation, planning, organization, writing, the use of visual aids, stress management, and question-answering are frequently required. Presentations are widely used in tertiary job settings, like when accountants give a corporation's detailed financial report. An interactive presentation has the advantage of capturing more audience attention and encouraging audience engagement, which promotes a sense of community.

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an n-year 4.75% bond is selling for 95.59. an n-year 6.25% bond at the same yield would sell for 108.82. the face and redemption amount of the bond is 100. find the yield rate.

Answers

The yield rate will be 0.02625.

95.59 = 100 + 100(0.02375 −j) a2n j. 108.82 = 100 + 100(0.03125 −j)a2n j. 95.59 −100/108.82 −100 =0.02375 −j/0.03125 −j = j= 0.02625.

The cost of a bond, commonly known as its "par value," is what the issuer must pay when it matures. In contrast, the face value of a stock is the cost established by the company issuing it at the time of issuance.

The price at which securities may be repurchased by the issuing business before their maturity date is known as the redemption value. If a bond's redemption value is higher than its purchase price, it was bought "at a discount". If the price paid for it is higher than the value redeemable for it, it is bought "at a premium".

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countrybank offers one-year loans with a stated rate of 15 percent but requires a compensating balance of 9 percent. what is the true cost of this loan to the borrower? (round your answer to 2 decimal places. (e.g., 32.16))

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The true cost of this loan to the borrower country bank offers one-year loans with a stated rate of 15 percent but requires a compensating balance of 9 percent 17%.

Bank's Proposal means the Bank's offer to provide the City with a non-revolving line of credit in the form of a tax-restricted general bond issue and to accept the Notes pursuant to the terms contained in the Bank's Proposal.

Banks are licensed financial institutions that accept checks and deposits and make loans. Banks also offer related services such as Individual Retirement Accounts (IRAs), Certificates of Deposits (CDs), Currency Exchange and Safe Deposit Boxes.

The word bank is used as a noun to refer to a place where people deposit their money or a long hill or slope such as a riverbank. Bank is also used as a verb meaning to bounce off something. The word bank is very common and has several other meanings, both as a noun and as a verb.

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paulson company issues 7%, four-year bonds, on january 1 of this year, with a par value of $104,000 and semiannual interest payments. semiannual period-end unamortized discount carrying value (0) january 1, issuance $ 6,813 $ 97,187 (1) june 30, first payment 5,961 98,039 (2) december 31, second payment 5,109 98,891 use the above straight-line bond amortization table and prepare journal entries for the following. (a) the issuance of bonds on january 1. (b) the first interest payment on june 30. (c) the second interest payment on december 31.

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(0) January 1,  issuance            $13,466               $ 186,534

(1) June 30, first payment          11,782                188,218

(2) December 31, second payment 10,098             189,902

In finance, a bond is a type of protection below which the issuer (debtor) owes the holder (creditor) a debt, and is obliged – depending at the phrases – to pay off the essential (i.e. quantity borrowed) of the bond on the maturity date as well as hobby (called the coupon) over a special quantity of time. The hobby is generally payable at constant durations: semiannual, annual, and less often at different periods. as a consequence, a bond is a form of loan or IOU. Bonds offer the borrower with outside price range to finance long-time period investments or, within the case of government bonds, to finance contemporary expenditure.

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suppose your rich aunt hands you a $3,000 check at the end of the school year. she tells you it is for your education. but what should you really do with that extra money? use the rule of 70 to determine how long it takes to double and quadruple your money under each scenario.

Answers

It wouldn't be worth $6,000 for 35 years.

Using the Rule of 70, how is the doubling time calculated?

The number of years required for a nation's economy to double in size is equal to 70 divided by the percent growth rate. For instance, if an economy expands by 1% annually, it will take 70 / 1 = 70 years for the economy to double in size.

How is the 70% rule calculated?

Quick illustration of the 70% rule It is simple to apply the 70% rule. You increase the property's ARV by 0.7 to decide the greatest cost you would pay for that property. If you think a property's ARV will be $300,000, for instance, you shouldn't spend more than $210,000.

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10)goodwill is:10)a)only recorded by the seller of a business.b)amortized over the greater of its estimated life or 40 years.c)the excess of the fair value of a business over the fair value of all net identifiable assets.d)none of these answer choices are correct.

Answers

The Answer is C. The excess of the fair value of a business over the fair value of all net identifiable assets.

Define Goodwill?

Goodwill is an intangible asset recognized that can relate to the value of the purchased company's brand reputation, employee relationships, customer service, and intellectual property, when ownership of a firm is transferred as a concern.

The portion of the purchase price that is higher than the sum of the net fair value of all of the assets purchased in the acquisition and the liabilities assumed during the process.

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standards provide information for measuring performance. the purpose of using standards is to assess blame and responsibility. when actual results depart significantly from the standard, the reasons why should be investigated. standards are only used in managerial accounting. need help? review these concept resources.

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When actual results depart significantly from the standard, the reasons why should be investigated and Standards provide information for measuring performance are the statements that are true.

By how much input should be used to create a good or deliver a service?

Quantity Standards outline how much of an input must be used to produce a good or deliver a service. The amount that should be paid for each unit of the input is specified by price standards.

Should standards be used to determine who is to accountable for issues?

Standards that are used to determine who is to blame for issues can engender animosity and lower morale. Standards shouldn't be used to assign responsibility for issues. A labor rate variance can be brought on by a number of variables besides the contractual wage rate given to employees.

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what financial variables or ratios you consider essential to compare companies' financial performance

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profitability, liquidity, solvency, and valuation are the financial variables or ratios I would consider essential to compare companies' financial performance.

Because they are the most accurate predictors of the expectations and actions of investors and other economic players, financial variables are used to forecast future economic events. Market value, assets, equity, cash flow, sales, and market/book value are a few examples of commonly used financial performance factors. Other variables include levels, growth, and variability in profit as well as market value, assets, and cash flow. The process of horizontal analysis is used to track changes in the financial variables across time. The firm evaluates ratios, statements, and other metrics over time in a trend analysis technique known as horizontal analysis. Dependent variables and independent variables are used in financial modelling and accounting. In contrast to independent variables, which are unaffected by changes in other variables, dependent variables change when they are influenced by other factors.

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The owner’s equity section of a balance sheet may report different kinds of details about owner’s equity, depending on the need of the business.T/F

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The owner’s equity section of a balance sheet may report different kinds of details about owner’s equity, depending on the need of the business is true.

What is an illustration of equity?

After all liabilities connected to an asset have been paid off, the asset's equity remains. For instance, if you have a car worth $25,000 but owing $10,000 on it, you have $15,000 in equity in the car. It refers to the worth or stake of the most inexperienced class of asset investors.

How come it's called equity?

As a result of their representation of ownership in businesses, stocks are known as equities. They allow investors to take advantage of growth but also exposing them to danger when the economy falters.

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E12-23. (Matching Match the items in the following right column with those in the left column: 1. An act of Congress that gives a department and/or agency authority to a Outlays obligate the federal government to make disbursements for goods and services b. Obligation c. Disbursement 2. Document sent to the Treasury ordering it to pay vendors and employeesschedule 3. Sets standards for federal government accounting d. GASB 4. Type of fund used to account for commercial-type operations of federal 5. Action by which the OMB distributes amounts appropriated by Congress Appropriation f. Revolving fund g. Apportionment agencies Payments of obligations obligation h. FASAB i. Allotment j. Trust fund _6. 7. Reserves budgetary authority from an allotment in anticipation of an 8. Federal equivalent of encumbrances used by state and local governmental k. Deferral I. Commitment units 9. Type of fund that finances Social Security payments

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An act of Congress that gives a department and/or agency authority to Outlays obligate the federal government to make disbursements for goods and services.

Federalism is a system of government in which powers are divided between a central and its constituent states, provinces, etc. It is an institutional mechanism that integrates her two policy areas: one at the central or national level and one at the regional or local level.

"State" means that there is both a central government and 50 state governments. A "republic" is a form of government in which the people hold power and elect representatives to exercise that power.

These numerated powers include, among others, the power to tax, regulate commerce, enact uniform naturalization laws, establish federal courts (subordinate to the Supreme Court), establish and maintain armed forces, and declare war.

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goods and services are configurations of standard parts, subassemblies, or services that can be selected by customers from a limited set while select goods and services are made according to a fixed design

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are combinations of conventional components, components from subassemblies, or services that consumers can choose from a small selection. example: Subway sandwiches and Dell PCs.

Are large-scale, tailored projects like that?

consist of a variety of smaller tasks and activities that must be planned out and completed in order for large, customised projects to be delivered on time and within budget. Characteristics: A wide range of requirements and duties were given to the site along with special, substantial, and sophisticated resources.

Batching, low to moderate volume, numerous routes, a diversity of products, a highly skilled personnel, and customization to the demands of the customer are all traits

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Which of the following is a valid defense in a strict products liability case?
A. comparative negligence
B. contributory negligence
C. assumption of risk
D. consent.

Answers

C. Assumption of risk

The following which is a valid defense in a strict product liability case is the Assumption of risk. If you need a valid defense in a product liability, then use the assumption of risk.

Product liability is an area of law that regulates the responsibility of manufacturers, distributors, suppliers or sellers of a product that is sold to the public for losses that can be caused by these products. While the word "product" can have broad connotations, in the field of law it is usually restricted to private property.

Most countries usually regulate this through legislation, for example by creating specific product liability laws, adding related provisions in civil law, or providing for them in consumer protection laws. The United States and the European Union are considered the two countries with advanced product liability laws, so most systems in other countries are modeled on one or the other.

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dependence on world markets is the reason for which of the following? multiple choice question. supply stability in u.s. agriculture demand stability in u.s. agriculture demand volatility in u.s. agriculture price ceilings in u.s. agriculture

Answers

The following agriculture demands stability in u.s. Option B.

Market globalization brings about increased interdependence between markets. global economy multi-nationality of procurement manufacturing trade and investment activities increasingly cross borders. increased competition between deals and financing;

Globalization lowers manufacturing costs. This means that businesses can offer consumers lower prices. The average cost of goods is an important aspect that helps improve living standards. It also gives consumers access to a wider variety of products. The main motive of multinational corporations is to provide financial support to their own governments. The main motive is profit for foreign countries.

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Which of the following statements about GDP is most accurate? A) Nominal GDP values productions using fixed prices, while real GDP values productions using current prices
B) Nominal GDP values productions using current prices, while real GDP values productions using fixed prices
C) Nominal GDP consistently underestimates the value of production, while real GDP consistently overestimates the value of production
D) Nominal GDP value costs using variable costs, while real GDP values costs using fixed cost

Answers

The statement that is accurate about GDP is  A) Nominal GDP values productions using fixed prices, while real GDP values productions using current prices.

What Is Real GDP (Real Gross Domestic Product)?

Real gross domestic product (GDP) is a measure of an economy's output of all products and services over the course of a year, adjusted for inflation. Base-year prices are used to express real GDP. It is also known as GDP in constant prices, GDP that has been adjusted for inflation, and GDP in constant dollars. Simply expressed, real GDP corrects for price fluctuations and estimates the total economic production of a nation.

Real gross domestic product (real GDP) is a measure of an economy's output of all goods and services during a particular year that has been adjusted for inflation.

Real GDP is frequently referred to as constant price, inflation-corrected, or constant dollar GDP since it is measured in base-year prices.

Therefore, option A is correct.

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1) What are the minimum requirements for a feature?

a) Name, benefit hypothesis and acceptance criteria

b) Acceptance criteria, data models and priority

c) Whatever the Agile Release Train determines is required

d) Benefit hypothesis, acceptance criteria and priority

Answers

Out of the choices provided above, it can be stated that the benefit hypothesis, acceptance criteria and priority are the minimum requirements for a feature. Therefore, the option D holds true.

The benefit hypothesis can be referred to or considered as the method followed in order to decide the approval of a feature in the frameworks related to the same. The benefit hypothesis is most likely complemented by the acceptance criteria and priority as a proposition of the minimum requirements of a feature.

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If the government increased its purchases of goods and services by $12,000, and this resulted in an eventual increase in gdp and income of $60,000, the mps would be equal to _____
A. 0.2
B. 0.4
C. 0.8
D. 2

Answers

Here, the change in saving is 12.000 and change in income is 60,000. Using MPS formula, that is, change in saving /change in income = 12000/60000 = 0.2. option A is the correct.

What Is the Marginal Propensity to Save (MPS)?

Economists can determine households' MPS by income level using information on household income and saving. Because MPS is not constant and can change depending on income level, this calculation is crucial. The MPS often rises with income since each new dollar is less likely to be spent on subsequent purchases as wealth improves and the capacity to meet requirements and wants. However, it's still possible that a consumer's savings and spending patterns might change in response to an increase in income.

Naturally, a higher paycheck enables one to more easily pay for living expenditures, giving one more room to save. A higher pay also opens up access to more expensive items and services.

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jim is opening an interest-accruing checking account which compounds interest monthly. the amount in the account, in dollars, after t years is shown by the following expression. which statement below best describes the exponent, 12t? a. the amount of the initial deposit b. the rate at which the account is increasing c. the number of times the account has compounded since it was opened d. the amount of the yearly earnings

Answers

The interest is compounded monthly, there are 12 compounding periods per year, and the exponent 12t represents the total number of compounding periods over t years. Thus, the correct answer is option c.

The expression given for the amount in the account is likely of the form

[tex]\displaystyle{\displaylines{A = P(1 + r/n)(nt)}}[/tex]

where,

P is the initial deposit,

r is the annual interest rate,

n is the number of times the interest is compounded per year,

t is the time in years.

The exponent 12t in the expression represents the number of times the account has compounded since it was opened.

Therefore, the correct answer is option c. The exponent 12t represents the number of times the account has compounded since it was opened.

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which type of multinational organizational structure is appropriate when local differences are large and the benefits of global integration are small?

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A multinational corporation (MNC) has facilities and different property in at the least one country other than its home, Such organizations have offices and/or factories in special countries and typically have a centralised head office where they coordinate worldwide management.

Reduce the price of manufacturing, mainly the labour fee. seize the moneymaking foreign marketplace against worldwide competition. Avail the competitive advantage internationally. acquire extra performance with the aid of producing in neighborhood markets after which exporting the products.

Multinational corporation (MNC), additionally referred to as transnational organization, any organization that is registered and operates in more than one us of a at a time. normally the employer has its headquarters in a single u . s . and operates absolutely or partially owned subsidiaries in different countries.

A multinational organisation is a corporation that does enterprise in a pick out few countries round the arena and operates centers such as warehouses or distribution centres in at the least one overseas usa. although the enterprise does enterprise in different international locations, its primary consciousness is the home marketplace.

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you are the manager of a local distributor, and your vendor has just increased your price from $1.20/unit to $1.65/unit. however, the price that you can charge your client is locked in via contract at $2.05/unit. what has happened to the margin?

Answers

To keep the budget as intended, the business must evaluate the budget and find more places where expenses can be reduced.

The first job that needs to be accomplished in order to find expenses that can be cut is budget revision. To further improve performance, budget modifications should be made. As a result, money might be redistributed throughout the budget's many operations to provide a higher output. Assume that Mazeppa is now producing 100,000 units per year. If it wants to enhance operational income by $5 for each unit included in the special order, what unit price should it charge the distributor? Calculations in the middle should not be rounded. The business won't have to turn away any of its regular customers in order to fulfil the special order at its existing operational level of 100,000 units. It just needs to produce a contribution margin per unit of if it wants to improve operational income by for each unit in the special order.

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on november 1, alan company signed a 120-day, 8% note payable, with a face value of $21,600. what is the adjusting entry for the accrued interest at december 31 on the note? (use 360 days a year.)

Answers

On November 1, alan's company signed a 120-day, 8% note payable, with a face value of $21,600.

Debit Interest Expense, $288; credit Interest Payable, $288.

Interest payable (21600*0.08*60/360)

A company, abbreviated as co., is a legal entity representing an affiliation of people, whether or not natural, felony or a aggregate of each, with a selected goal. organization contributors proportion a commonplace motive and unite to attain specific, declared dreams.

A corporation is a criminal entity fashioned with the aid of a collection of individuals to engage in and perform a business—business or commercial—business enterprise. A organization can be organized in various methods for tax and financial liability functions relying on the corporate regulation of its jurisdiction.

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what are ups’s business customers looking for when committing to work with ups?

Answers

Ups’s business customers looking for when committing to work with ups is like healthcare, small business, and international market.

What is UPS Business?

UPS is the world's leading parcel delivery company and a leading provider of global supply chain management solutions. We operate one of the world's largest airlines and one of the largest alternative fuel fleets under the global UPS brand. Although UPS's primary business is the worldwide delivery of packages and documents, UPS' service portfolio also includes global supply chain services and trucking.

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the breakeven point in units increases when unit costs a. remain unchanged and sales price increases. b. decrease and sales price increases. c. decrease and sales price remains unchanged. d. increase and sales price remains unchanged.

Answers

The breakeven point in units increases when unit costs d. increase and the sales price remains unchanged.

The break-even point will boom by any of the subsequent: An increase in the quantity of the company's constant costs/costs. A boom within the per unit variable charges/charges.

A low breakeven factor approach that the enterprise will begin making a profit quicker, whereas an excessive breakeven point means extra services or products that want to be sold to attain that factor.

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Do network effects help or hurt innovation? Why? If you were competing in a market where network effects exist, what strategies would be available for you succeed?

Answers

Network effects are sometimes criticized as harming innovation by companies that use them to gain market domination.

Why do you use the word "market"?

The market refers to all sellers and customers in the area or region that is being studied. The topic could include Earth as well as a number of other countries, areas, states, and cities. The forces of supply and demand in the market determine the value, expense, or cost of the items sold.

What kind of market is there?

A market is a setting where a number of individuals exchange products, services, and information. A market is ideally a place where a group of individuals can do business. the two participants

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kansas corporation is reviewing an investment proposal that has an initial cost of $76,500. an estimate of the investment's end-of-year book value, the yearly after-tax net cash inflows, and the yearly net income are presented in the schedule below. yearly after-tax net cash inflows include savings from the depreciation tax shield. the investment's salvage value at the end of each year is equal to book value, and there will be no salvage value at the end of the investment's life. year initial cost and book value yearly after-tax net cash inflows yearly net income 1 $ 43,000 $ 28,000 $ 10,500 2 29,000 25,500 11,500 3 18,500 23,000 12,500 4 11,500 20,500 13,500 5 0 18,000 14,500 $ 115,000 $ 62,500 kansas uses a 14% after-tax target rate of return for new investment proposals. year fv of $1 at 14% fv of an ordinary annuity at 14% pv of $1 at 14% pv of an ordinary annuity at 14% 1 1.140 1.000 0.877 0.877 2 1.300 2.140 0.769 1.647 3 1.482 3.440 0.675 2.322 4 1.689 4.921 0.592 2.914 5 1.925 6.610 0.519 3.433 6 2.195 8.536 0.456 3.889 required: a. calculate the project's payback period. (do not round intermediate calculations.) b. calculate the accounting rate of return on the initial investment. (do not round intermediate calculations. round your answer to 1 decimal place.) c. calculate the proposal's net present value. (do not round intermediate calculations. round your final answer to nearest dollar amount.)

Answers

Payback period of Project is 3 years, accounting rate of return is 16.3% and Net Present value is $4.669

Give a brief account on payback period.

The duration needed to recoup an investment's cost is referred to as the payback period. Simply described, it is the period of time it takes for an investment to break even. The payback period is significant because individuals and businesses invest money primarily in order to be reimbursed. In principle, an investment gets more alluring the quicker its payback is. Anyone can benefit from calculating the payback period by dividing the initial investment by the typical cash flows.

To solve the question :

1. Calculation of payback period :

Year          Annual Net After          Cumulative

                  Tax Cash Flows           Cash Flows

a                          b                                 c          

1                           28.000                   28,000

2                          25.500                   53,500

3                          23.000                    76,500

4                          20,500                    97,000

5                          18.000                     115,000

Initial Cost = 76,500

Payback period of Project = 3 years

2. Calculation of Accounting rate of return on the initial investment :

Calculation of Average Annual Net Income :

Average Annual Net Income

(62500/5) = 12,500

Calculation of Accounting rate of return based on original investment :

a. Average Annual Net Income = 12,500

b. Initial Investment = 76,500

Accounting rate of return :

(Average Annual Net Income/Initial Investment × 100)

= (12.500 / 76,500 × 100)

= 16.3%

3. Calculation of Net present value :

Year        Net Cash Flows    Present value of 1 at 14%        Present value of              

a                       b                         c = 1/1.4^a                              cash flows

0                -$76,500                     1.000                                   -$76,500

1                  $28.000                     0.877                                    $24,556

2                 $25,500                     0.769                                    $19,610

3                 $23,000                     0.675                                    $15,525

4                 $20,500                     0.592                                    $12,136

5                 $18,000                      0.519                                     $9,342

Net Present Value = $4,669

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the minimum points of the average variable cost and average total cost curves occur where the a. average variable cost and average total cost curves intersect. b. marginal cost curve lies below the average variable cost and average total cost curves. c. marginal cost curve intersects those curves. d. slope of total cost is the smallest.

Answers

The minimum points of the average variable cost and average total cost curves occur where --- the marginal cost curve intersects those curves.

Option C is correct .

Why does the MC curve intersect the minimum points of ATC and AVC?

He intersects AVC and ATC at the minimum marginal cost because the curves are equal at the lowest point. At the minimum point, ATC = MC = AVC.

If the average variable cost is the lowest, is the marginal cost the highest?

When average cost is minimal, marginal cost = average cost. This is because the second marginal cost is higher than the average cost. Since the marginal cost is higher than the average cost, the average cost should also be higher.

Marginal cost curve :

The marginal cost (MC) curve is defined as the change in total cost divided by the change in energy production. In a perfectly competitive market, the MC curve is the same as the firm's supply

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historical experience shows that a hospital sometimes receives malpractice claims in the year after the incidents occur. which of the following statements best expresses the general rule for reporting liabilities for such claims, if risk of loss has not been transferred to a third-party insurer? select one: a. liabilities should be recognized in the statements if it is probable that claims will be asserted for incidents occurring before the balance sheet date and the losses can be reasonably estimated. b. no mention is required to be made of these claims anywhere in the financial statements. c. the hospital should have purchased extended insurance. d. a note should be prepared discussing the likelihood that claims will be received after the balance sheet date, but no estimate needs to be made of the possibility of loss.

Answers

If it is likely that claims will be made for occurrences prior to the balance sheet date and the losses may be reasonably predicted, liabilities should be recognized in the statements. (Option C)

What does balance sheet mean?

An organization's assets, liabilities, and shareholder equity are listed on a balance sheet, which is a financial statement. One of the three primary financial statements used to assess a company is the balance sheet. It offers a snapshot of the assets and liabilities of a corporation as of the publication date.

Why is the balance sheet the most crucial document?

The balance sheet is crucial because it informs you and other interested parties about your financial situation. Making better management decisions can be aided by keeping this information current. It can also enhance your operating effectiveness, borrowing capacity, and overall financial stability.

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assuming the 2012 revenue and student enrollment goals are met, what will be the average annual growth rate of tuition for 2009 to 2012?

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The average annual growth rate of tuition for 2009 to 2012 would be 20% if the 2012 revenue and student enrollment goals are met.

Assuming the 2012 revenue and student enrollment goals are met, the average annual growth rate of tuition for 2009 to 2012 can be calculated using the following equation:

Average Annual Growth Rate of Tuition = ((2012 Tuition - 2009 Tuition) / 2009 Tuition) / 3. Where 3 is the number of years between 2009 and 2012.

For example, if the 2012 tuition is $20,000 and the 2009 tuition was $15,000, then the average annual growth rate of tuition for 2009 to 2012 would be calculated as follows:

Average Annual Growth Rate of Tuition = ((20,000 - 15,000) / 15,000) / 3 = 0.2 or 20%

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