Evaluate the achievability of the company objectives for Montreaux USA. Identify the most salient aspects of the chocolate confectionery industry, globally and domestically, that bear on a new product introduction. Provide support.
Answers
Montreaux USA's objectives of introducing a new premium chocolate product line are achievable if they differentiate their product from competitors and carefully consider taste, packaging, marketing, and pricing.
Montreaux USA's objectives can be evaluated by examining the current state of the chocolate confectionery industry, both globally and domestically. The global chocolate confectionery market is expected to grow at a compound annual growth rate of 5.3% from 2021 to 2026. This growth is attributed to an increase in demand for premium and organic chocolates, as well as a growing awareness of the health benefits of dark chocolate.
Domestically, the U.S. chocolate confectionery market is the largest in the world and is expected to grow steadily over the next five years. However, the industry is highly competitive, with many established players such as Hershey, Mars, and Nestle, and new entrants face significant challenges in gaining market share.
The success of a new product introduction in the chocolate confectionery industry depends on several factors, including taste, packaging, marketing, and pricing. Montreaux USA's objectives of introducing a new premium chocolate product line can be achieved if they can differentiate their product from existing offerings by highlighting unique flavor profiles, attractive packaging, and effective marketing strategies.
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Related Questions
every item on a wbs needs to be on the network diagram.True or False
Answers
False. Every item on a Work Breakdown Structure (WBS) does not need to be on the network diagram. The WBS and the network diagram are two different project management tools that serve different purposes.
A Work Breakdown Structure (WBS) is a hierarchical decomposition of the project scope into smaller, more manageable components. It represents the deliverables, sub-deliverables, and work packages that make up the project. The WBS provides a visual representation of the project's scope and helps in organizing and understanding the work that needs to be done.
On the other hand, a network diagram, also known as a project schedule or a critical path method (CPM) diagram, is a graphical representation of the project's activities and their dependencies. It shows the sequence and relationships between different activities and helps in identifying the critical path, which determines the project's duration.
While the network diagram includes the activities required to complete the project, it does not necessarily include all the elements from the WBS. The network diagram focuses on the project's activities, their dependencies, and their sequencing, while the WBS focuses on breaking down the project's scope into manageable components.
Therefore, it is not necessary for every item on a WBS to be on the network diagram. The network diagram includes the activities required to complete the project, and these activities may correspond to multiple items on the WBS. However, not all elements of the WBS may be represented as separate activities in the network diagram.
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Create a demand curve with the following information:
As a Pizza enthusiast, you regularly eat pizza a couple of times a week. Let's suppose that at $ 5, you consider the prize for this great pizza a bargain, and raise your consumption of pizzas to 10 per month. However, even though pizza is your favorite food, your economic resources are limited, and there is just a limited amount of money you are willing to spend on buying pizza. Therefore:
At $ 5, you buy 25 pizzas per month.
At $ 10, you limit yourself to 20 pizzas per month.
At $ 15, you limit yourself to 15 pizzas per month.
At $ 20, you limit yourself to 10 pizzas per month.
At $ 25, you limit yourself to only 5 pizzas per month.
Answers
If pizza prices rise, the demand curve for pizza will turn to the left. The equilibrium price and the quantity of 150 pizzas are equal to $10. It is acknowledged that pizza request rises 30 units at each cost level.
What factors influence pizza?The price of the pizza, the consumer's income, the price of related goods both substitute and complementary goods and the consumers' tastes and preferences all play a role in determining how much pizza they want.
The demand for pizza will shift to the right if the price of pizza goes up. Whenever a determinant of interest other than cost changes, the interest bend shifts.
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the sovereign immunity doctrine states that a foreign sovereign cannot be sued unless an exception to the foreign sovereign immunities act of 1976 applies. a sovereign is:
Answers
A sovereign is a supreme power or governing authority, often referring to a nation's political entity. The sovereign immunity doctrine means that a foreign sovereign cannot be sued in a U.S. court unless an exception under the Foreign Sovereign.
What is a sovereign?A sovereign is a supreme ruler or a supreme governing authority, either of a nation-state or of an independent state. In legal terms, sovereign refers to a government or a state that has complete and independent power and authority over its territory and citizens, and is not subject to control by any other government or entity.
The sovereign immunity doctrine states that such a government or state is immune from being sued in the courts of another country, unless an exception specified in the Foreign Sovereign Immunities Act of 1976 applies. Hence, the answer is, a sovereign is a supreme power or governing authority, often referring to a nation's political entity.
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ESTIONS
Discuss FOUR phases of business cycle in detail
Answers
Answer:
The answer is below
Explanation
1. Expansion: this is a period in which business is growing at a considerable rate. Such as an increase in production and sales
2. peak: this is a period in which production and prices increase beyond the normal level. This shows there is no longer room for increment.
3. contraction: this is a period in a business cycle in which the productions and sales began to fall due to low patronage and a bad economy.
4. Trout: this is a peak period in which business models lost their values in terms of production and sales. At this point, it is believed that the business cannot get worse.
a service provided by -e-government that requires access to the Internet is _____.
A. RFID tags
B. E-tax returns
C. Radio programming
D. CCTV (Closed circuit TV)
Answers
Answer:
B. E-tax returns
Explanation:
E-tax returns is the electronic filing of tax returns via the internet. It entails online submission of pre-approved tax return forms available on the tax authority's website.
In recent years, governments have put measures to facilitate e-returns. It has simplified the process making it popular among taxpayers. Electronic tax filing has have contributed to having a high number of citizens registering as taxpayers.
Jane, a partner in a CPA firm, borrows $100,000 on a secured note from one of the firm's bank audit clients to build a new dormer on her house. The amount of the loan is material to Jane. Jane will not provide any services to the bank and she is unable to influence the engagement. Jane practices in the same office as the lead partner on the bank's audit. Is Jane's independence impaired under the AICPA code?
a) Yes, because Jane borrowed the money from an audit client while she was a covered member.
b) Yes, because the loan is material to Jane's net worth.
c) No, because the note is secured and is related to Jane's primary residence.
d) No, because Jane is not on the attest team or able to influence the engagement.
Answers
The correct option is A. Yes, because Jane borrowed the money from an audit client while she was a covered member.
Here we can see that Jane is a partner in a CPA firm, she borrows $100,000 on a secured note from one of the firm's bank audit clients to build a new dormer on her house. The amount of the loan is material to jane. Jane will not provide any services to the bank and she is unable to influence the engagement. Jane practices in the same office as the lead partner on the bank's audit
Accounting is the process of recording financial transactions touching on a business. The accounting process consists of summarizing, reading, and reporting those transactions to oversight companies, regulators, and tax collection entities. The chart of bills organizes your finances into five fundamental account types, called bills: property, liabilities, equity, revenue, and fees.
A business needs a system to manipulate its money. Business accounts are used to music the cash balance, debts to the commercial enterprise, debts to creditors, and payroll paid to personnel. The range of debts a commercial enterprise needs will range, but business bills are widely widespread for all agencies.
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According to the indirect method of preparing a cash flow statement, under which category does inventory fall? Under the indirect method of preparing a cash flow statement, a decrease in a , such as inventory, is added to the net income
Answers
Answer:
Cash flow from Operating Activities
Explanation:
Inventories are part of the ordinary course of business and thus any inventory changes will be categorized under Cash flow from Operating Activities.
An increase in the inventory balance will be deducted from Net Income whilst a decrease is added to the net income.
Answer:
" non-cash current asset "
Explanation:
From Pluto Tutorial
Is computer assembly a good job for a teenager?
Answers
No, if they are not educated about computers
Explanation:
Jobs help kids develop a sense of responsibility. Jobs help kids develop a greatest sense os self. To develop a teen under the age of 16 it costs more in insurance and there is extral laws as well so most businesses just don't do it. A best thing you can do is talk to your local shop owners. Go to the shop (during a non busy time) and ask if the owner has some time to walk to you and if not when would be a good time.
please help me!!! I literally have no clue what it is
Answers
Answer:
Critical Thinking,Mathematics, and Operation and Control.
Explanation:
Kristoffer needs to create cell names that match the column headings he has already created. Select the correct navigational path to set those names using the Create from Selection command. Click on the tab on the ribbon and look in the Defined Names gallery.
Answers
Answer:
formula
create from selection
top row
Explanation:
just took the question on edge
The correct navigational path to create cell names that match the column heading using the Create from Selection command is: Click on the Formula tab on the ribbon and look in the Defined Names gallery. Select the range of cells, including the row that includes the name you wish to use. Select Create from Selection. Select Top row and click OK.
What is a cell?Cells are the boxes that appear in an Excel worksheet's grid. On a worksheet, each cell is identified by its reference, the column letter and row number that intersect at the cell's location.
Instead of creating cell names one by one, "Create from Selection" tool can be used to create cell names from a selection. The tool is in the "Defined Names" group of the Formulas menu.
Therefore, the correct path for using the Create from Selection command is first to click on Formula tab and look in the Defined Names gallery. Then select the range of cells, including the row that includes the name wish to use. Select Create from Selection. Select Top row and click OK.
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A group of customers that a business decides to focus its marketing efforts and, ultimately, its products on is a _____. target market niche industrial market consumer market
Answers
Answer:
Target market!!
Explanation:
Hope this helps:)
In what three ways does the government affect production of goods and services in the US economy?
Answers
Melissa plans to become a nurse. What would be a good extracurricular activity for Melissa during high school? O A. O B. O C. O D. joining the cheerleading squad taking charcoal drawing lessons participating in gymnastics volunteering at a health clinic after school
Answers
Answer:
Volunteering at a health clinic after school
Explanation:
If Melissa plans on becoming a nurse, she should look for extracurriculars which could help support her in her future years. Volunteering at a health clinic could provide her with hands on experience opposed to cheerleading or charcoal drawing which are good for hobbies and fun activities. But if Melissa really has a passion to become a nurse she should look for extracurriculars which not only interest her but may be of benefit to her.
The demand in the market for smartphones has increased causing prices to write what effect will this likely have in The demand in the market for smartphones has increased causing prices to right what effect will this likely have in the supply of smart phones
Answers
Answer:
The supply point will increase by moving along the existing supply curve
Explanation:
Erin's weekly health deduction from her check is $5.35. If his employer pays 80% of the premium, how much is her annual premium?
Answers
Answer:
Explanation:
I assume they are asking for the total premium paid per year, but I will also show just the amount she pays per year.
To figure out the total annual premium:
If the employer pays 80%, then the employee pays 20% (100%-80%).
Total Premium x .20% = 5.35
Total Premium = 5.35/.2 (20%)
Total Premium = 26.75 per week
Total annual premium is 26.75 x 52 weeks = 1,391
‘The employee only pays 20% or 5.35 per weekly paycheck. Her annual costs is 5.35 x 52 weeks=278.20
Should citizens participating in
criminal trials should have some requirements such as someone who
has a degree? Or someone who makes at least $20,000 per year? Why
or why not?
Answers
Citizens participating in criminal trials should not be required to have a degree or make a certain amount of money per year. This is because such requirements would create inequalities in the justice system and violate the principle of equal protection under the law that is enshrined in the US Constitution.
First, requiring citizens to have a degree in order to participate in criminal trials would discriminate against those who cannot afford higher education. This would create an unfair advantage for those who are more affluent and better-educated, and it would prevent many people from serving on juries or as witnesses.
Secondly, requiring citizens to make a certain amount of money per year would also create inequalities. Poorer citizens would be excluded from participating in criminal trials, which would violate their rights to equal protection under the law. Moreover, wealth is not necessarily a measure of a person's ability to serve as a juror or a witness. A person's income level does not necessarily correlate with their intelligence, education, or integrity
.In conclusion,citizens should not be required to have a degree or make a certain amount of money per year in order to participate in criminal trials. Doing so would violate the principle of equal protection under the law, create inequalities, and prevent many people from participating in the justice system.
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Please!!!!!!!!!!!!!!!!!!!!please!!!!!!!!!!!!!!!!!
What is Marketing and why is it important in a global economy? How do you interact with and are
affected by marketing daily?
Answers
Answer:
Many companies have become disillusioned with sales in the international marketplace as old markets become saturated and new ones must be found. How can they customize products for the demands of new markets? Which items will consumers want? With wily international competitors breathing down their necks, many organizations think that the game just isn’t worth the effort.
Islanders are getting tired of fish and are looking for alternatives to provide protein to their diet. Elizabeth and Matty decide to work together to build traps to catch the wild pig that are on the island.
Create a simple supply and demand curve that would show the shift in demand
Answers
As there was a decrease in demand for fish among the islanders, Elizabeth and Matty decide to work together to build traps to catch the wild pig that are on the island. Hence the demand curve of fish declined and the supply curve of pigs will rise.
How do supply and demand curves work?The demand curve illustrates how much of a certain good or service customers will be able and willing to purchase at each price over a specific period of time. The supply curve shows how much inventory retailers plan to put up for sale at various prices at the same time. Supply and demand serve as a microeconomic model for determining pricing in a market.
Supply and demand serve as a microeconomic model for determining pricing in a market. The demand curve for products and services can change depending on a number of factors, including changes in population, income, the cost of complementary or substitutive goods, and expectations for future conditions and prices. As a result, a different amount may be demanded at a particular price.
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Matt wants to start a bait shop from an heritance he received. What two strategies could Matt use to start his business?
A. common stock or retained earnings
B. long term goals or liquid assets
C. common stock or short term liabilities
D. short term liabilities or fixed assets
Answers
The two strategies that Matt could use to start his business would be D. short term liabilities or fixed assets .
What strategies would help Mark best ?Matt could use a combination of short-term liabilities and fixed assets to start his bait shop. Short-term liabilities, such as loans or credit lines, can provide the initial funding needed to purchase inventory, equipment, and supplies.
Fixed assets, such as a building or a storefront, can provide a permanent location for the bait shop and help establish a presence in the local community.
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rent received Rs. 10,000/-
Answers
Answer:
Okay, but where is the question or it's free points?
Buying or selling stock is
saving
investing
Otrading
Odiversifying
Answers
Answer:
Trading
Explanation:
1. Saving is saving funds to invest in stocks.
2.
Buying stock is an investment.
3. Trading - meaning buying or selling any stock shares you own is trading.
Refer to Figure 2-4. Suppose the economy is at point A. What is
the opportunity cost of increasing the production of toothbrushes
by 10 units?
Question 12 options:
5 toasters
10 toasters
Answers
The opportunity cost of increasing the production of toothbrushes by 10 units is 10 toasters. The correct option is (b).
Opportunity cost refers to the value of the next best alternative that is forgone or sacrificed when making a decision. It is the cost of choosing one option over another.
In the given diagram, when the economy is at point A same units I.e.30units produced. Here the equal ratio of production of toothbrushes and toasters.(30:30=1).Therefore when we increase production toothbrushes by 10units it will decrease producion of toasters by 10units.
Therefore the opportunity cost of increasing the production of toothbrushes of 10units is 10 toasters.
Thus, the ideal selection is option b.
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The complete question is shown in the attached image.
Alveva is an online beauty subscription service that sends its subscribers a monthly box of four to seven curated make-up and beauty products. Alveva’s monthly subscription service allows customers to test in-trend products before purchasing them at a full price from Alveva’s website. Table 1 (second column) shows the per unit wholesale cost of each product that can be used to create different boxes each month.
After customers receive their subscription boxes, they can indicate the products they did not enjoy through a monthly survey. The Analytics Department at Alveva uses this information to categorize customers into 10 subscriber types. The number of customers that belong to each subscriber type is given in the last row of Table 1. In addition to collecting subscribers’ feedback, the firm also keeps track of the products that the customers receive each month to ensure the delivery of new items in each box. The ones in Table 1 indicate a product that a subscriber type must not receive in their next box. For example, subscriber type 1 must not receive moisturizer A, lipstick C, concealer B, highlighters A and B, and nail polish D in their next monthly box. Assume the same box should be sent to all subscribers of the same type. At most 80000 units of each product type can be used in the subscription boxes each month due to resource limits.
If Alveva charges $8 per item in the monthly subscription box, how should the boxes be curated and assigned to different subscribers to maximize the total profit?
Write the algebraic formulation for this optimization problem.
Solve using Excel or GAMS and report your findings.
The CEO of Alveva would like to limit the number of different boxes created to a maximum of 3 to process boxes faster. In other words, at most 3 types of boxes will be produced, and each box type will be sent to multiple subscriber types (e. G. Box type 1 may be sent to subscriber types 1, 2, 5, and 8). What should be included in these 3 box types, how should they be assigned to different subscribers, and what is the optimal profit? Solve using Excel or GAMS.
Hint for part 2: A (practically) desirable model for this part is a mixed-integer linear program. For this model, you need to introduce a binary variable with three indices (for example, define binary variable uijk, which takes a value of 1 if product i is included in box j for subscriber type k, and 0 otherwise). We recommend using GAMS for solving this model, because GAMS is a more convenient platform for implementing variables with more than 2 indices. If you are unable to model this problem as a mixed-integer linear program, it is OK to model it as a nonlinear program. For this model, you do not need to define the binary variable with three indices. If you adopt this second option, we recommend using GAMS and solver BONMIN. Remember you can select your solver by adding the following before the solve statement: "Option solver=BONMIN;"
Answers
This problem requires the optimization of profit from the sale of subscription boxes with the constraint of limited resources and customer preferences.
To solve this problem, we need to formulate a mathematical model that maximizes the profit by selecting the products to include in each box and assigning them to the appropriate customer types while considering the resource limit and customer preferences. One way to approach this problem is by formulating it as a mixed-integer linear program, where we introduce binary variables to represent the selection of products and assignment of boxes.
We can then use optimization software such as GAMS to solve the problem and obtain the optimal solution. To address the second part of the question, where the CEO wants to limit the number of different boxes to three, we can modify the model to include this constraint and solve it using the same approach.
Overall, this problem requires a thorough understanding of mathematical optimization and the ability to formulate and solve complex optimization problems using software tools.
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Please help--
Spending that is based on the purchase decisions you make that can vary from month to month is a ___
Answers
Halliford Corporation expects to have earnings this coming year of $3.00 per share. Halliford plans to retain all of its earnings for the next two years. For the subsequent two years, the firm will retain 50% of its earnings. It will then retain 20% of its earnings from that point onward. Each year, retained earnings will be invested in new projects with an expected return of 25% per year. Any earnings that are not retained will be paid out as dividends. Assume Halliford's share count remains constant and all earnings growth comes from the investment of retained eamings. If Halliford's equity cost of capital is 10.0%, what price would you estimate for Halliford stock?Complete the steps below using cell references to given data or previous calculations. In some cases, a simple cell reference is all you need. To copy/paste a formula across a row or down a column, an absolute cell reference or a mixed cell reference may be preferred. If a specific Excel function is to be used, the directions will specify the use of that function. Do not type in numerical data into a cell or function. Instead, make a reference to the cell in which the data is found. Make your computations only in the blue cells highlighted below. In all cases, unless otherwise directed, use the earliest appearance of the data in your formulas, usually the Given Data section. Earnings per share $ 3.00 Retention period (years) 2Retention rate (1) 50% Retention rate (2) 20%Expected return 25%Equity cost of capital Year 1 2 3 4 5 6Earnings 25% 25% 12.5% 12.5EPS growth rate (vs. prior year) EPS Dividends Retention rate 100% 100% 50% 50% 20% 20%Dividend payout ratio Dividends Year 5 value of dividends after year 5 Stock price Requirements:1. In cell range D16:116, by using cell references, calculate the earnings per share for years 1:6, respectively (1 pt.). 2. In cell range D19:119, by using cell references, calculate the dividend payout ratios for years 1:6, respectively (1 pt.). 3. In cell range D20:120, by using cell references, calculate the dividends for years 1:6, respectively (1 pt.). 4. In cell D22, by using cell references, calculate the present value in Year 5 of the dividends after year 5 (1 pt.). 5. In cell D23, by using cell references, calculate the price of the stock today(1 pt.). Note: For this particular step, use actual values in your exponents --- do not use cell references in the exponents.
Answers
The price that would be estimated for Halliford stock will be $68.39.
How to calculate the stock price?Growth rate = Rate of return × Retention rate
Year 1 EPS = $3.00
Growth rate for Year 2 and Year 3 = 25% * 100% = 25%
Growth rate for Year 4 and Year 5 = 25% * 50% = 12.50%
Growth rate for Year 6 onwards per year = 25% * 20% = 5%
In conclusion, the price that would be estimated for Halliford stock will be $68.39. The attachment is provided.
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Which type of bankruptcy allows a judge to adjust debts through elimination and reduction based on a person's income? (I took the test and ill put the answer in parenthesis, freebie points i suppose)
Chapter 7
Chapter 9
Chapter 11
(Chapter 13)
Answers
Reorganization bankruptcy under Chapter 13 is intended for borrowers with a steady income who have enough left over each month to at least partially pay off their debts.
What is bankruptcy?Through the legal process of bankruptcy, individuals or other entities who are unable to pay their creditors back can seek partial or complete relief from their obligations. Bankruptcy is often enforced by a court order that is frequently requested by the debtor. By selling assets to pay debts or by coming up with a repayment plan, bankruptcy enables those who are unable to pay their bills to start again. Businesses in financial distress are also protected by bankruptcy rules.
The legislation and bankruptcy procedure are explained in this section. You might be able to seek debt relief through bankruptcy, but you should be aware that this will have a negative, long-term impact on your credit. Your ability to acquire credit lines will be hampered for 7–10 years after bankruptcy.
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The action of working or acting together for a common purpose or benefit is
A.) Analytical Thinking
B.) Cooperation
C.) Integrity
D.) Dependability
Answers
The action of working or acting together for a common purpose or benefit is called cooperation.
What is working together?Working together is described as the means of forming a collaboration through which a shared goal or a common goal is achieved.
Acting or working together so that a common benefit or a common purpose can be fulfilled is highlighted as cooperation. Cooperation allows people working in a team to work cooperatively because all the people work actively so that a shared goal can be achieved. This benefits collectively all the people cooperating.
It can be concluded that the action of working or acting together for a common purpose or benefit is called cooperation.
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Jobs that require lower level skills have better benefits, like health insurance, than jobs that require a college education. Please select the best answer from the choices provided T F
Answers
Answer:
False, jobs requiring a higher level of education have more benefits than jobs that require minimal education.
Answer: f
Explanation:
Perry Enterprises is considering a number of investment possibilities. Specifically, each investment under consideration will draw on the capital account during each of its first three years, but in the long run, each is predicted to achieve a positive net present value (NPV). Listed here are the investment alternatives, their net present values, and their capital requirements, and all figures are in thousands of dollars. In addition, the amount of capital available to the investments in each of the next three years is predicted to be $9. 5 million, $7. 5 million, and $8. 8 million, respectively. A. Assuming that any combination of the investments is permitted, which ones should Perry make to maximize NPV?b. What is the optimal NPV in the combination chosen in part (a)?c. Suppose that the expansion investments are mutually exclusive and only one of them can be made. How does this alter the solution in part (a)?d. Suppose that the test market cannot be carried out unless the advertising campaign is also adopted. How does this contingency alter the solution in (a)?
Answers
To determine the optimal investment strategy for Perry Enterprises, we need to compare the net present values (NPVs) of each investment alternative and consider the available capital in each year.
Given the available capital for each of the next three years:
Year 1: $9.5 million
Year 2: $7.5 million
Year 3: $8.8 million
Now let's analyze each part of the question:
a. Assuming any combination of the investments is permitted, we need to choose investments that maximize the NPV. To do this, we compare the NPVs of each investment alternative with the capital requirements in each year to ensure that the investments are feasible.
b. To determine the optimal NPV in the chosen combination, we sum the NPVs of the selected investments.
c. If the expansion investments are mutually exclusive, and only one can be made, we need to compare the NPVs of the investments and choose the one with the highest NPV. In this case, the solution in part (a) will change, as we can only select one investment.
d. If the test market cannot be carried out unless the advertising campaign is also adopted, we need to consider this contingency. We would need to choose both the test market and the advertising campaign as a combined investment if either one is selected. This alters the solution in part (a) as the two investments become a single entity.
To provide a specific solution and optimal NPV, we would need information on the investment alternatives, their NPVs, and capital requirements. Without this information, it is not possible to determine the exact investments and their respective NPVs. Please provide the specific data, and I will be able to assist you further in determining the optimal investment strategy and NPV.
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Aggie Limo is considering upgrading their fleet of stretch limosines by adding a large flat screen TV. With the flat screen TV, they can charge more money enabling annual revenue for each limosine. There is also a small increase in annual cleaning costs. Flatscreen cost including installation: 1540
Additional annual revenue per car due to flat screen: 832 Additional annual cleaning cost due to flat screen: 148 What is the payback (in years)?
Answers
We must ascertain how long it will take for the additional money brought in by the flat-screen TV to offset the cost of installation and the rise in yearly maintenance expenses in order to calculate the payback period.
The flat screen TV's initial price, including installation, is $1540. The flat screen TV generates $832 more in annual revenue per car, while the higher annual cleaning expenses come out to $148. We divide the initial expense by the net yearly cash flow, which is the difference between the additional revenue and the additional cleaning expense, to determine the payback period: Initial cost x Net annual cash flow equals the payback time. Net annual cash flow is equal to additional revenue minus additional cleaning expenses ($832 minus $148 equals $684). Period of repayment = $1540 / $684 ≈ 2.25 years The addition of the flat-screen TV to the limousine fleet will therefore pay for itself in roughly 2.25 years.
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