Vandelay Industries is considering the purchase of a new machine for the production of
latex. Machine A costs $3,210,000 and will last for six years. Variable costs are 37
percent of sales, and fixed costs are $350,000 per year. Machine B costs $5,455,000
and will last for nine years. Variable costs for this machine are 32 percent of sales and
fixed costs are $240,000 per year. The sales for each machine will be $12.4 million per
year. The required return is 9 percent, and the tax rate is 24 percent. Both machines will
be depreciated on a straight-line basis. The company plans to replace the machine when
it wears out on a perpetual basis.
Calculate the EAC for each machine. (A negative answer should be indicated by a
minus sign. Do not round intermediate calculations and enter your answers in dollars,
not millions of dollars, rounded to 2 decimal places, e.g., 1,234,567.89.)
System A
System B
4

Answers

Answer 1

The Equivalent annual cost for the Machine A and B is $5,083,947.72 and $5,461,499.68 respectively,

What is an Equivalent annual cost?

In accounting, this refers to the annual cost of owning, operating, and maintaining an asset over its entire life.

Machine A:

Cost of Machine = $3,210,000

Useful Life = 6 years

Annual Depreciation = Cost of Machine / Useful Life

Annual Depreciation = $3,210,000 / 6

Annual Depreciation = $535,000

Annual OCF = [Sales - Variable Costs - Fixed Costs] * (1 - tax)+ tax * Depreciation

Annual OCF = [$12,400,000 - 37% * $12,400,000 - $350,000] * (1 -0.24) + 0.24 * $535,000

Annual OCF = $7,462,000 * 0.76 + 0.24 * $535,000

Annual OCF = $5,799,520

NPV = -$3,210,000 + $5,799,520 * PVIFA(9%, 6)

NPV = -$3,210,000 + $5,799,520 * 4.48592

NPV = $22,806,182.76

EAC = NPV / PVIFA(9%, 6)

EAC = $22,806,182.76 / 4.48592

EAC = $5,083,947.72

Machine B:

Cost of Machine = $5,455,000

Useful Life = 9 years

Annual Depreciation = Cost of Machine / Useful Life

Annual Depreciation = $5,455,000 / 9

Annual Depreciation = $606,111.11

Annual OCF = [Sales - Variable Costs - Fixed Costs] * (1 - tax)+ tax * Depreciation

Annual OCF = [$12,400,000 - 32% * $12,400,000 - $240,000] * (1 -0.24) + 0.24 * $606,111.11

Annual OCF = $8,192,000 * 0.76 + 0.24 * $606,111.11

Annual OCF = $6,371,386.67

NPV = -$5,455,000 + $6,371,386.67 * PVIFA(9%, 9)

NPV = -$5,455,000 + $6,371,386.67 * 5.99525

NPV = $32,743,055.93

EAC = NPV / PVIFA(9%, 9)

EAC = $32,743,055.93 / 5.99525

EAC = $5,461,499.68

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Related Questions

What happens if people believe that government spending on library books will encourage even more reading and increase the private purchases of books

Answers

Answer:

That will be a good thing. Reading is great for everyone.

Fiscal policy will have a larger impact on the economy than if people didn't increase their purchases of books is the happens if people believe that government spending on library books will encourage even more reading and increase the private purchases of books. Hence, option B is correct.

What is Fiscal policy?

The use of taxation and expenditure by the government to affect the economy is known as fiscal policy. Fiscal policy is often used by governments to encourage robust, long-term growth and to lower poverty.

Tax reductions and greater public spending are the two main manifestations of expansionary fiscal policy. Both of these measures aim to boost overall demand while reducing budget surpluses or adding to deficits.

Using taxation and spending by the government to influence the economy. escalating taxes. tax that is levied at a higher rate of taxation as income increases. Important phrases.

Thus, option B is correct.

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The options were attached below-

What happens if people believe that government spending on library books will encourage even more reading

1. A person risks losing most or all of his or her money in (a) a savings account (b) an elective savings program (c) a speculative investment (d) a conservative investment

Answers

The answer is C) speculative investment

Another name for back rushing is?

Answers

Answer:

Ruffing

Hope this helps!!!

On July 1, Shady Creek Resort borrowed $400,000 cash by signing a 10-year, 9% installment note requiring equal payments each June 30 of $62,328. What is the journal entry to record the first annual payment

Answers

Answer:

                             Journal Entry

                                    Debit       Credit

Interest Expense      $36,000

Notes Payable          $26,328

Cash                                             $62,328

Workings

Interest portion for one year = 400,000 * 9% = $36,000

Total installment paid = $62,328

So, principal portion repaid = $62,328 - $36,000

 = $26,328

Select the education and qualifications that are most helpful for Human Resources careers. Check all that apply.

integrity
long-term planning skills
communication skills
bachelor’s degree
research skills
creativity
organizational skillsWhich is the best estimate for the percent equivalent of 7/15

Answers

Answer:

2 4 5 7

Explanation:

Answer:

2,4,5,7

Explanation:

If a $5,000 coupon bond has a coupon rate of 13 percent, then the coupon payment every year is (a) $650. (b) $1,300.

Answers

The Answer is in the question click this link to find out the answer phs.dcsdk12.org good luck!

On January 1 2021 Salvatore Company leased several machines from Nola Corporation under a three year operating lease agreement. The lease calls for semiannual payments of $15,000 each payable on June 30 and December 31 of each year. The machines were acquired by Nola at a cost of $90,000 and are expected to have a useful life of five years with no expected residual value Required Prepare the appropriate journal entries for the lessor from the beginning of the lease through the end of 2021. Of no entry is required for a transaction/event, select "No Journal entry required" in the first account field.)

Answers

Answer and Explanation:

The journal entries are shown below:

1. Equipment $90,000  

               To Cash $90,000

(Being the cost of the building is recorded)

For recording this we debited the equipment as it increased the assets and credited the cash as it decreased the assets  

2. Cash $15,000  

         To Lease Revenue  $15,000

(Being the recognition of revenue is recorded)  

For recording this we debited the cash as it increased the assets and credited the lease revenue as it also increased the revenue

3. Cash $15,000  

          To Lease Revenue  $15,000

(Being the recognition of revenue is recorded)  

For recording this we debited the cash as it increased the assets and credited the lease revenue as it also increased the revenue

4. Depreciation $18,000  ($90,000 ÷ 5 years)

          To Accumulated depreciation $18,000

(Being the depreciation expense is recorded)

For recording this we debited the depreciation as it increased the expenses and credited the accumulated depreciation as it decreased the assets    

Novak Corporation is preparing its 2014 statement of cash flows, using the indirect method. Presented below is a list of items that may affect the statement. Using the code below, indicate how each item will affect Novak’s 2014 statement of cash flows.

Code Letter

Effect

A Added to net income in the operating section
D Deducted from net income in the operating section
R-I Cash receipt in investing section
P-I Cash payment in investing section
R-F Cash receipt in financing section
P-F Cash payment in financing section
N Noncash investing and financing activity
(a) Purchase of land and building.
AR-I and DR-IR-F and ADR-F and DP-FP-IR-FNR-I and A

(b) Decrease in accounts receivable.
R-F and AR-FNR-I and DR-I and ADR-F and DAP-FR-IP-I

(c) Issuance of stock.
R-FAR-IDP-FR-F and AP-IR-F and DNR-I and DR-I and A

(d) Depreciation expense.
R-IP-FP-IR-F and DR-FNR-F and AR-I and AR-I and DAD

(e) Sale of land at book value.
R-F and DP-IADR-FR-IP-FNR-I and DR-I and AR-F and A

(f) Sale of land at a gain.
DR-I and DNR-IR-FR-F and AR-I and AR-F and DP-IAP-F

(g) Payment of dividends.
R-I and AP-IP-FDNAR-I and DR-IR-FR-F and DR-F and A

(h) Increase in accounts receivable.
R-F and ANAP-FP-IR-FR-I and DR-IR-I and AR-F and DD

(i) Purchase of available-for-sale investment.
ADR-I and DR-I and AR-F and DR-F and AP-FR-FNR-IP-I

(j) Increase in accounts payable.
R-F and DDR-F and AAR-IP-IR-FNR-I and DP-FR-I and A

(k) Decrease in accounts payable.
R-I and DNP-FR-F and AR-IR-I and AR-F and DDAP-IR-F

(l) Loan from bank by signing note.
R-I and DR-I and ANP-IDP-FR-F and DR-F and AAR-IR-F

(m) Purchase of equipment using a note.
R-F and DP-IR-FR-I and ANR-F and AP-FR-IR-I and DAD

(n) Increase in inventory.
NR-IP-FR-FP-IDR-I and DR-I and AAR-F and AR-F and D

(o) Issuance of bonds.
AP-FR-F and DNR-I and DR-F and ADR-FR-IP-IR-I and A

(p) Redemption of bonds payable.
R-I and DR-I and AR-IR-F and DP-FR-F and ADP-IANR-F

(q) Sale of equipment at a loss.
R-F and DNR-F and AR-I and DADR-I and AR-FR-IP-IP-F

(r) Purchase of treasury stock.

Answers

Answer: The answers are provided below

Explanation:

a) Purchase of land and building = P-I

This will be a cash payment in investing section

b) Decrease in accounts receivable = A

This will be added to the net income in the operating section

c) Issuance of stock = R-F

This will be a cash receipt in financing section

d) Depreciation expense = A

This will be added to the net income in the operating section

e) Sale of land at book value = R-I

This will be a cash receipt in investing section.

f) Sale of land at a gain = R-I and D

This will be a cash receipt in investing section and deducted from the net income in the operating section

g) Payment of dividends = P-F

This will be a cash payment in financing section

h) Increase in accounts receivable = D

This will be deducted from net income in the operating section

i) Purchase of available-for-sale investment = P-I

This will be a cash payment in investing section

j) Increase in accounts payable = A

This will be added to the net income in the operating section

k) Decrease in accounts payable = D

This will be deducted from net income in the operating section

l) Loan from bank by signing note = R-F

This will be a cash receipt in financing section

m) Purchase of equipment using a note = N

This will be a noncash investing and financing activity

n) Increase in inventory = D

This will be deducted from net income in the operating section

o) Issuance of bonds = R-F

This will be a cash receipt in financing section

p) Retirement of bonds payable = P-F

This will be a cash payment in financing section

q) Sale of equipment at a loss = R-I and A

This will be a cash receipt in investing section and will be added to the net income in the operating section

r) Purchase of treasury stock = P-F

This will be a cash payment in financing section

Which of the following BEST describes how credit unions affect the national economy?

OA. They offer financial services to people with a common bond.
OB. They loan money to banks and other financial institutions.
OC. They offer loans to struggling government institutions.
OD. They audit and evaluate stock markets.

Answers

╭── ⋅ ⋅ ── ✩ ── ⋅ ⋅ ──╮

The best answer that describes how credit unions affect the national economy is:

OA. They offer financial services to people with a common bond.

Credit unions are not-for-profit financial cooperatives that are owned and operated by their members. They offer financial services, such as loans and savings accounts, to individuals and businesses who have a common bond, such as living in the same community or working for the same employer. By providing access to affordable financial services, credit unions help to promote financial stability and economic growth in their communities. However, credit unions generally do not loan money to banks or other financial institutions, offer loans to struggling government institutions, or audit and evaluate stock markets.

╰── ⋅ ⋅ ── ✩ ── ⋅ ⋅ ──╯

e) Sarah needs fewer skilled workers to make violins. What do think Sarah should do? Justify your answer. you​

Answers

Answer:

learn

Explanation:

factors leading to the increased use of project management - select all that apply a) increased customer focus b) knowledge explosion c) compression of the product life cycle d) decreased customer focus

Answers

The increased use of project management was due to a number of factors. These include an increased customer focus that has led companies to view projects from the customer's perspective, and an explosion of knowledge that has increased the complexity of many projects.

In addition, compression of the product life cycle has increased the need to complete projects quickly and efficiently, while reduced customer focus has forced companies to focus on projects to remain competitive. By utilizing project management, companies are able to better understand customer needs, allocate resources more efficiently, and manage project timelines with greater precision. This has enabled them to create products and services that meet customer requirements and remain competitive in the market.

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If a savings account has a nominal interest rate of 2% and compounds quarterly, what is the effective annual interest rate?

Answers

Answer:

To calculate the effective annual interest rate (EAR) from a nominal interest rate with quarterly compounding, you can use the following formula:

EAR = (1 + (r/n))^n - 1

Where:

r is the nominal interest rate (expressed as a decimal), which is 2% in this case (0.02).

n is the number of compounding periods per year, which is 4 (quarterly compounding).

Plugging in the values, we have:

EAR = (1 + (0.02/4)) - 1

= (1 + 0.005) ⁴- 1

= (1.005) 1

≈ 0.0202

Therefore, the effective annual interest rate for a savings account with a nominal interest rate of 2% and quarterly compounding is approximately 2.02%.

Which are possible employers in the Financial career cluster? Check ALL that apply.
O private company
O government
O nonprofit organization
bank
Ostock market

Answers

Quants are particularly sought-after in the trading sector, where they use algorithms to pinpoint the most profitable trading opportunities.

What are the possible employers in the Financial career?

Asset managers, banks, hedge funds, insurance companies, and private equity firms all use quants to help with opportunity and risk detection.

Retail sales, insurance services, banking and related services, and business financial management.

Therefore, Employees can work for themselves in the insurance sales, tax preparation, financial planning, and investment management industries.

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Race and gender are examples of _____.
social issues
personality disorders
discrimination
diversity issues

Answers

Answer:

I think the answer is D.

I believe it would be diversity issues

The topic sentence in each step of a process analysis should identify?

Answers

The topic sentence in each step of a process analysis should identify the reason for doing the step. The correct option is C.

What is the main function of a process analysis essay?

A process analysis essay explains how to carry out a task or how a process operates. The steps for writing a process analysis essay are the same regardless of the situation. The procedure is broken down into distinct, definite steps. A step-by-step process is used in almost everything writers do.

Product analysis is carried out as part of the Define Scope process to produce a comprehensive scope at the end. The goals and description of the product as stated by the client or sponsor are examined during the product analysis process. It is anticipated that analysis will lead to concrete project deliverables.

Thus, the ideal selection is option C.

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Your Question seems incomplete, most probably your complete question was:

The topic sentence in each step of a process analysis should identify:

a

the outcome of the step

b

the final product

c

the reason for doing the step

d

pitfalls of the step

Based on your research, complete the following:

Discuss how your selected country's culture impacts the ethical reasoning of its people.
Describe how the country's ethical reasoning might disrupt global business.

Answers

Culture can significantly impact ethical reasoning, creating conflicts between different cultural norms and values that can disrupt global business, but a nuanced and culturally sensitive approach can help companies navigate these challenges.

Culture can have a significant impact on ethical reasoning, as it shapes people's values, beliefs, and attitudes towards different ethical issues. For example, in some cultures, there may be a strong emphasis on individualism and personal achievement, while in others, collectivism and group harmony may be prioritized. This can lead to different perspectives on issues such as corporate responsibility, environmental sustainability, and human rights.

In some cases, a country's ethical reasoning can disrupt global business by creating conflicts between different cultural norms and values. For example, a company that operates in a country with a strong emphasis on individualism may struggle to meet the expectations of stakeholders in a country with a more collectivist culture. Similarly, a company that operates in a country with a lax regulatory environment may face criticism and backlash from stakeholders in countries with stronger regulatory standards.

One specific example of cultural differences impacting global business can be seen in the case of labor standards. In some countries, there may be a cultural acceptance of low wages and poor working conditions, which can create challenges for companies that operate in those countries and are subject to pressure from consumers and investors to improve labor standards. At the same time, companies that prioritize high labor standards in countries with low cultural expectations may face challenges in maintaining profitability and competitiveness.

Overall, understanding the cultural factors that shape ethical reasoning is important for global businesses to navigate the complex ethical and social issues that arise in different contexts. By taking a nuanced and culturally sensitive approach, companies can build trust and credibility with stakeholders while also maintaining a competitive edge in the global marketplace.

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7 the follow table contains the demand from the last 10 months :

7 the follow table contains the demand from the last 10 months :

Answers

Explanation:

Month Actual Demand Month Actual Demand

1 31 6 36

2 34 7 38

3 33 8 40

4 35 9 40

5 37 10 41

Show Work and answer the following:

a.) calculate the single exponential smoothing forcast for these data using a of .30 and an initial forecast ( F1) of 31.

b.) calculate the exponential smooting with trend forecast for these data using an a of .30, & of .30, and an initial trend forecast ( T1) of 1, and an initil exponentailly smoothed forecast F1 of 30,

c.) calculate the mean absolute deviation (MAD0 for each forecast

How can a company take advantage of viral diffusion in a rapidly growing market?

a. They can give opinion leaders free products to use.
b. They can identify and court opinion leaders in a particular market.
c. All of these are ways for companies to take advantage of viral diffusion in a rapidly growing market.
d. They can encourage experts in the field to use the product first.
e. They can create a partnership with opinion leaders to help further develop the technology.

Answers

Answer:

The answer is D

Explanation:

I think so

The answer is d. They can encourage experts in the field to use the product first is the advantage of viral diffusion in a rapidly growing market

Which marketing tactic qualifies as product proliferation in a developed market?

Product proliferation is a strategy used by businesses to increase the range of products they provide in a market or submarket in order to saturate the market and reduce the amount of unmet demand (Mainkar, Lubatkin, & Schulze, 2006).

Product proliferation, pricing games, and preserving surplus capacity are the key strategies used by businesses in established markets to thwart entrants.

a dominator strategy for market share. Market share dominance is not one of Porter's general competition strategies. The best-cost provider, low-cost provider, differentiation, and concentrated low-cost are the four main general categories of competitive strategy.

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When the quantity of a financial security supplied or demanded changes at every given interest rate in response to a change in factor, this causes a shift in the supply or demand curve. True or False

Answers

The statement is false the quantity of financial security supplied or demanded changes at every given interest rate in response to a change in a factor, as it doesn't cause a shift in the supply or demand curve.  

A change in quantity supplied or demanded in response to a change in factors such as income, or other relevant variables causes a movement along the existing supply or demand curve, rather than a shift in the curve itself.

This movement along the curve reflects a change in the quantity demanded or supplied at different price levels, while the supply or demand curve remains in its original position.

On the other hand, a shift in the supply or demand curve occurs when there is a change in a non-price factor affecting the supply or demand of financial security.

Examples of such factors could include changes in consumer preferences, technology, government regulations, or expectations about the future.

When one of these factors changes, the entire supply or demand curve shifts to a new position, reflecting a change in the quantity supplied or demanded at each given price level.

Thus, in the case of a given interest rate, it would result in a movement along the supply or demand curve.

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You purchase Rayovac batteries from Wal-Mart. You send in your battery receipt and a form with your name, address, and UPC code to Rayovac. Rayovac sends you a check for $5.00. What type of discount is this? O A sale O A gift card O A rebate O A coupon​

Answers

Answer:

a rebate because companies like that and paint companies give out rebates

What motivates people to buy certain products?

Answers

advertisement, reviews
It might motivate someone to buy a product because they might either want it, or need it.

On October 1, 2016, Adams Company paid $4,200 for a two-year insurance policy with the insurance coverage beginning on that date. As of December 31, 2016, which of the following account balances are correct after adjusting entries have been made?a. Prepaid insurance $4,200, and Insurance expense $0.b. Prepaid insurance $0, and Insurance expense $4,200.c. Prepaid insurance $2,100, and Insurance expense $2,100.d. Prepaid insurance $3,675, and Insurance expense $525.

Answers

Answer:

d. Prepaid insurance $3,675, and Insurance expense $525.

Explanation:

Preparation of the journal entry to determine which of the following account balances are correct after adjusting entries have been made

Based on the information given the account balances that are correct after adjusting entries have been made will be PREPAID INSURANCE $3,675, and INSURANCE EXPENSE $525.

First step is to calculate the amount the company pay per month

Amount pay per month=$4,200/24 months

Amount pay per month = $175 per month

Last step

Since Three months have been used which are October, November, and December which means that $175 per month × 3 months = $525 which will be recorded as INSURANCE EXPENSE while the balance in PREPAID INSURANCE will be $4,200 - $525 = $3,675

QUESTION 39
Which of the following is true regarding an exclusive agency listing?
The broker has the exclusive right to sell the property for a specified period of
O The broker operating under this listing is entitled to a commission only if he or
The seller has the right to sell the property himself or herself without being ob
O The seller must pay the broker his or her commission irrespective of who foun

Answers

Regarding an exclusive agency listing, the correct statement is:

Only if the broker who operates under this listing finds a buyer for the property is entitled to a commission.

Who are Brokers?

Brokers are professionals who connect buyers and sellers of a variety of assets, including stocks, bonds, real estate, and commodities. By bringing together buyers and sellers and assisting them in negotiating deals that are advantageous to both parties, their function is to facilitate transactions.

Brokers are licensed professionals who help clients buy, sell, or rent homes in the real estate industry. They may work for a real estate agency or independently and typically receive a commission based on the transaction's value. Market research, property advertising, showing properties to potential buyers, and contract negotiation are all responsibilities of brokers. They are also in charge of making sure that the transaction goes according to all of the legal and regulatory requirements.

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Reggie, who is 55, had AGI of $35,200 in 2022. During the year, he paid the following medical expenses:
Drugs (prescribed by physicians)
Marijuana (prescribed by physicians)
Health insurance premiums-after taxes
Doctors' fees
Eyeglasses
Over-the-counter drugs
$ 570
1,470
1,280
1,320
445
270
Required:
Reggie received $570 in 2022 for a portion of the doctors' fees from his insurance. What is Reggie's medical expense deduction?

Answers

Reggie's medical expense deduction is $7,276.

AGI, or adjusted gross income, is a person's total income minus certain deductions and is used to calculate taxable income.

Reggie, who is 55 years old, had an AGI of $35,200 in 2022. During the year, he incurred the following medical expenses:

Drugs (prescribed by physicians): $5,701

Marijuana (prescribed by physicians): $1,470

Health insurance premiums-after taxes: $1,280

Doctors' fees: $1,320

Eyeglasses: $445

Over-the-counter drugs: $270

Reggie was reimbursed $570 by his insurance company for a portion of the doctors' fees. To calculate his medical expense deduction, we first need to subtract any reimbursements from his total medical expenses.

Total medical expenses: $5,701 + $1,470 + $1,280 + $1,320 + $445 + $270 = $10,486

Reimbursements: $570

Medical expenses after reimbursements: $10,486 - $570 = $9,916

To claim a medical expense deduction, the expenses must exceed a certain percentage of AGI, which varies depending on the taxpayer's age. For taxpayers who are 65 or younger, the threshold is 7.5% of AGI. For taxpayers who are over 65, the threshold is 7%.

Since Reggie is 55 years old, the threshold is 7.5% of his AGI or $35,200 x 0.075 = $2,640.

Therefore, Reggie can deduct the portion of his medical expenses that exceed $2,640.

Amount of medical expenses that exceed the threshold: $9,916 - $2,640 = $7,276

Therefore, Reggie's medical expense deduction is $7,276.

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Type the correct answer in the box Spell all words correctly.
Identify the sales promotion technique based on the given scenario.
Tara's company has launched a new perfume. The company recently received some bad publicity. Tara is planning to rebuild a strong relationship
with her customers by investing in techniques that improve the company's reputation and earn public goodwill. Tara is looking to improve her
company's reputation through______________.

Answers

Loyalty Points to Customers. Explanation: An vital sales advertising method that matches nicely into this method is the sales advertising technique.

What is a client loyalty program?

By definition, a patron loyalty software is a advertising approach that recognizes and rewards customers who purchase or have interaction with a brand on a routine basis. A enterprise can also dole out factors or perks, and graduate clients to higher stages of loyalty the more they buy.

A ordinary instance of client loyalty is Starbucks. The enterprise has managed no longer solely to preserve its customers but additionally to make bigger its patron base thru exemplary loyalty programs.

What are the 6 ranges of customer loyalty?

They are: suspect, prospect, first-time customer, repeat customer, consumer and advocate.

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Joe bought a stock at $57 per share. The price promptly fell to $55. Joe held on to the stock until it again reached $57, and then he sold it once he had eliminated his loss. If other investors do the same to establish a trading pattern, this would contradict _______. Multiple Choice the strong-form EMH the semistrong-form EMH technical analysis the weak-form EMH

Answers

Weak-form EMH


Explanation:
Weak form efficiency is also called The random walk theory States that past volume, Price movements and earnings do not affect the Price of a stock and cannot be used to forecast it’s future directions. Weak form efficiency States that prices of future securities Are random and not determined by past events and that there is no relationship between past information in current market prices.


The principle of weak form efficiency has been contradicted because other investors are making use of Joe’s past information to create a trading pattern.



Hope this helps

The first interview in the hiring process is called a

Answers

The first interview in the hiring process is typically referred to as an initial or preliminary interview.

The CEO is interested in learning more about probability and how it works. The CEO is also asking about how probability and analytics can be integrated into the business model. In the process of looking for information on probability, you find that it is important to understand optimization and forecasting and how they can be applied to benefit the business. Do some research and present the results for the CEO. The following is the necessary information to complete this lab assignment. Deliverables Step 2: Probability Research • Considering the CEO's request, you determine that some research needs to take place. • Define the following terms for the CEO and locate some chart examples of each type of analysis. o Probability o Optimization o Forecasting Step 3: Integrating Data Research for Business • In one to two paragraphs, discuss what role probability and statistics play in business decisions. • In one to two paragraphs, discuss any ethical considerations when doing probability. • Summarize by explaining why probability is a good method for the CEO to consider.

Answers

Step 2: Probability Research Probability, Optimization, Forecasting.

Step 3: Integrating Data Research for Business.

Probability:

Probability is a branch of mathematics that deals with the likelihood of events occurring. It is a measure of uncertainty and is expressed as a number between 0 and 1, where 0 represents impossibility and 1 represents certainty.

Optimization:

Optimization involves finding the best possible solution from a set of alternatives. It aims to maximize desired outcomes or minimize undesirable ones, considering constraints and objectives.

Forecasting:

Forecasting is the process of predicting future events or outcomes based on historical data and statistical models. It helps businesses anticipate demand patterns, market trends, and other factors that can influence decision-making.

Step 3: Integrating Data Research for Business

Probability and statistics play a crucial role in business decisions. They provide a framework for analyzing and interpreting data, assessing risks, making predictions, and supporting evidence-based decision-making.

When working with probability, ethical considerations are important. It is essential to ensure that data used in probability analysis is collected ethically, respects privacy and confidentiality, and adheres to relevant legal and regulatory requirements.

Probability is a valuable method for the CEO to consider because it provides a systematic and quantitative approach to analyzing uncertainty and making informed decisions.

By integrating probability into the business model, the CEO can better understand risks, optimize resource allocation, improve forecasting accuracy, and ultimately enhance strategic decision-making and business performance.

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Return on Invested Capital (ROIC) is a profitability ratio that measures how effective the firm is at generating a return for investors who have provided capital (bondholders and stockholders). The ROIC calculation answers three questions: How tax efficient is the firm? How effective are the firm’s operations? How intensively does the firm use capital? Comparing the answers to these questions between firms can help you understand why one firm is more profitable than another and where that profitability is coming from.
In the following, Apple’s ROIC is compared to Blackberry’s. The income statement and balance sheet are provided for both firms. While the ROIC calculation for Blackberry is completed below, you have to complete the calculation for Apple by supplying the correct income statement and balance sheet information. As you fill in this information, the components of Apple’s ROIC will be
calculated along with some supporting ratios. Use these subcomponents and supporting ratios to compare Apple and Blacberry’s performance. Where does Apple’s advantage come from?
This activity demonstrates the calculation of ROIC and the comparison of firm performance, supporting Learning Objective 5-1 and 5-2.
Instructions
Use the income statement and balance sheet information for Apple to fill in the missing items in the calculation of Apple’s ROIC and supporting ratios. Once filled in correctly, compare Apple’s performance to that of Blackberry. Where does Apple have an advantage? Where does Blackberry have an advantage?
Apple, Inc. Blackberry
Income Statement YE Sept 2012 YE Mar 2012
Net sales 156,508
Cost of sales 87,846
Gross margin
Research & development expense 3,381
Selling, general & admin expense 10,040
other operating 0
Total operating expenses
Operating margin
Interest & dividend income 0
Interest expense 0
Other Income / Expense 522
Total Other income
Earnings before taxes
Provision for taxes 14,030
Net income (loss)
Short-term marketable securities
Components 0 Inventories 791 Total current assets
Long-term marketable securities
Other assets
18,423
11,848
1,559
2,600
930
0
0
21
354
Balance sheet YE Sept 2014 YE Mar 30 2012
Cash & cash equivalents 10,746 247
Accounts receivable 10,930 0
Finished goods 0 1,027
68,662
13,421
55,241
522
55,763
41,733
6,575
5,089
1,486
21
1,507
1,153
1,527 3,062 0 1,208
2,733
0 2,645
0
Apple Inc Microsoft Corporation
18,383
Other Current Assets 16,803
Fixed Assets: PP&E (net) 15,452 3,927
0 102,959
57,653
176,064
38,542
19,312
7,071
13,731
3,389
0
Long term assets 6,660
Total assets
Accounts payable Deferred revenue
Total current liabilities Long-term debt
Deferred tax liabilities Other long-term liabilities Long-term liabilities
21,175 0
0 0
Accrued expenses 11,414 0
744
other 5,953
Deferred revenue - non-current 0 0
0
Other non-current liabilities 19,312 242
Total long-term liabilities 242

Return on Invested Capital (ROIC) is a profitability ratio that measures how effective the firm is at

Answers

Here is the ROIC calculation for Apple, Inc.:

The ROIC calculation

Net income (loss) $14,030

Interest expense $0

Taxes $14,030

Net operating profit after taxes $28,060

Average invested capital $176,064

Return on invested capital (ROIC) 15.9%

The following table compares Apple's ROIC to that of BlackBerry:

Company | ROIC

------- | --------

Apple | 15.9%

BlackBerry | 4.9%

As you can see, Apple's ROIC is significantly higher than BlackBerry's. This is due to a number of factors, including Apple's higher gross margin, operating margin, and net income.

Apple also has a lower tax rate than BlackBerry, which helps to boost its ROIC.

Here are some of the reasons why Apple has an advantage over BlackBerry:

Apple has a stronger brand and a more loyal customer base.Apple's products are more innovative and user-friendly than BlackBerry's products.Apple has a more efficient supply chain and a more effective marketing strategy.

Blackberry does have some advantages over Apple, such as its strong security features and its experience in the enterprise market. However, these advantages are not enough to offset Apple's overall advantages.

Overall, Apple is a more profitable company than BlackBerry. This is due to a number of factors, including Apple's strong brand, innovative products, efficient supply chain, and effective marketing strategy.


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tình hình kinh tế và triển vọng phát triển của việt nam

Answers

Answer:

English plzzz

Explanation:

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