Ash Company reported sales of $400,000 for Year 1, $450,000 for Year 2, and $500,000 for Year 3. Using Year 1 as the base year, what is the revenue trend percent for Years 2 and 3?
A. 88% for Year 2 and 80% for Year 3.
B. 88% for Year 2 and 90% for Year 3.
C. 112.5% for Year 2 and 125% for Year 3.
D. 125% for Year 2 and 112.5% for Year 3.
E. 80% for Year 2 and 90% for Year 3.
Answer: C
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Route Two Tire Company makes a special kind of racing tire. Variable costs are $220 per unit, and fixed costs are $31,000 per month. Route Two sells 500 units per month at a sales price of $300. The company believes that it can increase the price if the tire quality is upgraded. If so, the variable cost will increase to $230 per unit, and the fixed costs will rise by 25%. The CEO wishes to increase the company's operating income by 15%. Which sales price level would give the desired results? (Round your answer to the nearest cent.)
A) $990.00 per unit B) $282.00 per unit C) $318.00 per unit D) $328.20 per unit
Differentiate between particular average and general average
What will be an ideal response?
Tashakori Trucking, a U.S.-based company, is considering expanding its operations into a foreign country. The required investment at Time = 0 is $10 million. The firm forecasts total cash inflows of $4 million per year for 2 years, $6 million for the next 2 years, and then a possible terminal value of $8 million. In addition, due to political risk factors, Tashakori believes that there is a 50% chance that the gross terminal value will be only $2 million and a 50% chance that it will be $8 million. However, the government of the host country will block 20% of all cash flows. Thus, cash flows that can be repatriated are 80% of those projected. Tashakori's cost of capital is 15%, but it adds one percentage point to all foreign projects to account for exchange rate risk. Under these
conditions, what is the project's NPV? A. $1.01 million B. $2.77 million C. $3.09 million D. $5.96 million E. $7.39 million
The probability distribution that can be described by just one parameter is the _____ distribution
a. uniform b. normal c. exponential d. continuous