FastTrack​ Bikes, Inc. is thinking of developing a new composite road bike. Development will take six years and the cost is $200,000 per year. Once in​ production, the bike is expected to make
$300,000 per year for 10 years. The cash inflows begin at the end of year 7. Assume the cost of capital is
10.0% for parts​ (a), (b), and​ (c) below.
c. With costs remaining at $200,000 per​ year, how long must development last to change the​ decision?
Assume the cost of capital is 14.0% for parts​ (d), (e), and​ (f) below.
d. Calculate the NPV of this investment opportunity. Should the company make the​ investment?
e. How much must this cost of capital estimate deviate to change the​ decision?
f. With costs remaining at $200,000 per​ year, how long must development last to change the​ decision?
c. How long must development last to change the​ decision? For the decision to​ change, development must last enter your response here years, or longer. ​ (Round to two decimal​ places.)

Answers

Answer 1

To change the decision of developing a new composite road bike, the development must last for at least 6.62 years.

To calculate the time at which the decision would change, we need to compare the present value of the cash inflows with the present value of the costs. Since the cash inflows begin at the end of year 7 and last for 10 years, we can calculate the present value of the cash inflows using the formula for the present value of an annuity.

Using a cost of capital of 10%, the present value of the cash inflows is given by:

PV = Cash inflow per year *\([(1 - (1 + r)^(-n)) / r]\)

Where PV is the present value, r is the discount rate (10%), and n is the number of years the cash inflows last (10 years).

PV = $300,000 * \([(1 - (1 + 0.10)^(-10)) / 0.10]\)

PV ≈ $2,427,561.40

The present value of the costs is simply the sum of the costs over the development period, discounted at the same rate. Since the costs remain constant at $200,000 per year for the 6-year development period, the present value of the costs is:

PV = Cost per year * \([(1 - (1 + r)^(-n)) / r]\)

PV = $200,000 *\([(1 - (1 + 0.10)^(-6)) / 0.10]\)

PV ≈ $925,444.28

To change the decision, the present value of the cash inflows must be greater than the present value of the costs. Therefore, we can set up the following inequality:

$2,427,561.40 > $925,444.28

To find the time at which the development must last, we solve for n in the present value of the cash inflows equation:

$2,427,561.40 = $200,000 * \([(1 - (1 + 0.10)^(-n)) / 0.10]\)

Simplifying the equation gives us:

12.138 * \((1 - 1.1^(-n)) = 1\)

Solving for n using a financial calculator or spreadsheet, we find that n ≈ 6.62 years. Therefore, for the decision to change, the development must last for at least 6.62 years.

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Related Questions

Can someone please help me with this!!!!

Can someone please help me with this!!!!

Answers

Answer:

Eh easy aall you have to do is pay 4,305 dolllars

Explanation:

based on the rubric provided and the description of the project, what is the most likely learning objective for this project?

Answers

The most likely learning objective for this project is to develop proficiency in analyzing and evaluating complex data sets to make informed decisions.

The project description suggests that the project involves working with data sets and utilizing analytical skills to inform decision-making. Therefore, the primary learning objective is likely to be focused on developing proficiency in analyzing and evaluating complex data sets. This objective would entail acquiring the knowledge and skills necessary to effectively interpret and extract meaningful insights from the data. Additionally, the objective may involve understanding various data analysis techniques, such as statistical analysis, data visualization, or predictive modeling, depending on the specific requirements of the project.

The learning objective also emphasizes making informed decisions based on the analyzed data. This indicates a need for developing critical thinking and problem-solving skills to apply the insights derived from the data analysis process. It may involve understanding how to identify patterns, trends, and correlations in the data, as well as how to draw logical conclusions and recommendations from the findings. Furthermore, the objective may include the ability to communicate the results effectively, both orally and in written form, to stakeholders or decision-makers, ensuring that the analyzed data is presented in a clear and concise manner that facilitates understanding and informed decision-making.

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For each of the following examples, state which of these approaches is being taken to manage a common resource or supply a public good: social norms, quota, tradable allowance, government provision, or property rights. a. A nonprofit organization spray-paints signs on storm drains reminding everyone that it "drains to the ocean" with a picture of a fish: (Click to select) b. A city starts a free program that collects recyclable glass, paper, and plastic from residents' doorsteps: (Click to select) c. In England, municipal-waste authorities are given a percentage of an overall limit that can be put in the landfill each year. These percentages can be traded among municipalities: (Click to select) d. American bison, which once roamed freely across the Great Plains, are now raised on ranches for commercial purposes: (Click to select)

Answers

Here are the approaches being taken to manage a common resource or supply a public good:a. A nonprofit organization spray-paints signs on storm drains reminding everyone that it "drains to the ocean" with a picture of a fish: Social normsb. A city starts a free program that collects recyclable glass, paper, and plastic from residents' doorsteps: Government provisionc.

In England, municipal-waste authorities are given a percentage of an overall limit that can be put in the landfill each year. These percentages can be traded among municipalities: Tradable allowanced. American bison, which once roamed freely across the Great Plains, are now raised on ranches for commercial purposes: Property rights

approaches being taken to manage a common resource or supply a public good:a. A nonprofit organization spray-paints signs on storm drains reminding everyone that it "drains to the ocean" with a picture of a fish: Social normsb. A city starts a free program that collects recyclable glass, paper, and plastic from residents' doorsteps: Government provisionc are now raised on ranches for commercial purposes: Property rights.

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please help!! Question: Drake begins wearing knee high socks in his videos and concerts? What
happens to the demand for knee high socks?
please helppp!!

please help!! Question: Drake begins wearing knee high socks in his videos and concerts? Whathappens

Answers

The answer would be B because demand would increase, therefore if there are more consumers there will be less product as people keep buying (therefore p decreases)

What are development banks?

Answers

Again I feel special Twice

Answer:

A financial institution that provides risk capital for economic development projects on non commercial basis. They are often established and owned by governments or charitable institutions to provide funds for projects that would otherwise not be able to get funds from commercial lenders.

Source: Wikipedia

a modern cost allocation process that employs multiple cost drivers is:multiple choice contribution costing.job order costing.activity-based costing.process costing.

Answers

The predicted (budgeted) overhead expenditures for the year are divided by the anticipated (budgeted) level of activity for the year to arrive at the predetermined overhead rate.

The proper response is that volume measures are effective drivers of fixed overhead expenses. When the level of activity is quantified in machine hours and direct labor hours, a volume measure is utilized in plant facilities to provide results. It is distinct from the entity used to calculate the budget denominator, which is used to calculate the fixed overhead standard rate. The variance is unfavorably if the denominator of hours is greater than the maximum allowed, and favorably if the converse is true. Predetermined overhead rate, which is often calculated at the start of each period by dividing the projected manufacturing overhead cost by an allocation basis, is used to apply manufacturing overhead to goods or task orders (also known as activity base or activity driver).

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which country has the most donut shops per capita?

Answers

Canada has the most donut shops per capita in the world. There are about 1,500 donut shops per 10 million people in Canada.

Why does Canada have so many donut shops ?

There are a few reasons why Canada has so many donut shops. One reason is that donuts are a popular food in Canada. They are often served for breakfast, lunch, or dinner. Another reason is that there are a number of large donut chains in Canada, such as Tim Hortons and Dunkin' Donuts.

These chains have helped to popularize donuts and make them more accessible to people across the country.

The high number of donut shops in Canada has also led to some innovation in the donut industry. There are now a number of unique and creative donut shops in Canada that offer a variety of different flavors and toppings.

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All of the following are reasons for MAKING an item in your own company operations, Except for which one?
-There is no competent supplier available
-Due to insufficient capacity in your company operations
-To protect your proprietary technology
-To control transportation and warehouse costs

Answers

All of the following are reasons for Making an item in your own company operations, except Due to insufficient capacity in your company operations. The correct option is B.

Why are suppliers important to a company's quality efforts?

Suppliers are critical to the success of your company. They are critical when considering costs, product quality, and on-time delivery to satisfy end users.

For components that are not critical to the organization's operations, the supplier can provide economies of scale. -Instead of letting excess capacity sit idle, the company can use it by creating a material.

Thus, the ideal selection is option B.

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Comprehension and speed are the two most important traits in reading for business. please select the best answer from the choices provided t f

Answers

Answer:

true

Explanation:

But accuracy would be a better option speed is good, so you are always on task and comprehension for big words.

Pls help me with this question!

Pls help me with this question!

Answers

The type of bank that contributes to the national economy by managing accounts and credit lines for both individuals and businesses is a commercial bank. So, the correct choice is option C.

Commercial banks are financial institutions that play a vital role in the economy by providing a wide range of banking services to individuals, businesses, and governments. They accept deposits from customers and offer various types of accounts, including checking accounts, savings accounts, and certificates of deposit. Commercial banks also provide loans and credit lines to individuals and businesses to support their financial needs.

By managing accounts, commercial banks facilitate the safekeeping of funds for individuals and businesses, allowing them to make transactions, earn interest on their deposits, and access their funds conveniently through various banking channels.

Furthermore, commercial banks contribute to the national economy by extending credit lines to individuals and businesses. These credit lines can be used for various purposes, such as financing investments, expanding businesses, purchasing assets, or managing cash flow. By providing credit, commercial banks support economic growth, entrepreneurship, and job creation.

In summary, commercial banks are the type of bank that actively contributes to the national economy by managing accounts and credit lines for both individuals and businesses, playing a crucial role in promoting financial stability and facilitating economic activities.

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In March, Nigel agrees to sell manufactured goods to Marilyn, who agrees to pay for the goods by a promissory note, payable in six (6) months ("Note"). The goods arrive at Marilyn's store, and she sends the signed Note to Nigel. Nigel immediately sells the Note to Carl for value. It turns out that the goods are not well made and fall apart after a few uses. Marilyn's customers start returning the goods to her; and when the Note is due, Marilyn refuses to pay Carl.

Answers

Answer:

Marilyn take a good decision.

Explanation:

Marilyn refuses to pay Carl because Marilyn did not sell any goods due to its bad quality so Marilyn earn no money and is unable to pay Carl. Marilyn will be able to pay Carl if the goods are sold and she has the money but when there is no sale at all, Marilyn is unable to pay for the goods on the due time. Marilyn should return the goods to Nigel instead of paying money for it because these goods are useless and nobody will it at all.

Each department in a process costing system, will use (one, two, none) ______ Work in Process account. one. Department A had a beginning inventory balance ...

Answers

Each department in a process costing system, will use  one Work in Process account.

Each department in a process costing system will use one Work in Process account. In the case of Department A, which had a beginning inventory balance, this balance would be added to the costs incurred in the department during the period. The department's costing system would then allocate these costs to the units of production in the department, and any completed units would be transferred out of the Work in Process account and into the Finished Goods account.

In a process costing system, each department is assigned its own Work in Process (WIP) account. This allows for the tracking of costs and progress specific to each department within the production process. The WIP account serves as an intermediary account between the raw materials inventory and the finished goods inventory.

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Drag each resources to the correct location on the table let’s say you just bought a new cell phone. Listed here are sone of the many resources that went into producing that phone. Categorize the recourses according to factors of reproduction?

Answers

Categorizing resources according to factors of reproduction provides insights into the diverse inputs required for cell phone production, highlighting the interdependence of natural, human, and capital resources in the manufacturing process.

Categorizing the resources that went into producing a new cell phone according to factors of reproduction involves identifying the various inputs involved in its production and classifying them accordingly. The factors of reproduction typically include natural resources, human resources, and capital resources.

Natural resources:

Minerals: These include rare earth metals like lithium, cobalt, and tantalum used in the production of batteries and electronic components.

Fossil Fuels: Oil, natural gas, and coal are utilized in energy-intensive processes involved in manufacturing and transportation.

Human resources:

Labor: Skilled and unskilled workers involved in designing, engineering, assembling, and quality control processes.

Knowledge: Intellectual property, patents, and research and development efforts that contribute to technological advancements.

Capital resources:

Machinery and Equipment: Production machinery, robotics, assembly lines, and testing equipment used in manufacturing facilities.

Infrastructure: Factories, transportation networks, communication systems, and power grids necessary for production and distribution.

It is important to note that this is not an exhaustive list, as the resources involved in cell phone production are diverse and may vary based on the specific components and technologies used. Additionally, the categorization may overlap in some cases. For instance, skilled labor can be considered both a human resource and a capital resource when specialized tools or equipment are required.

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Which of these terms means "paying to communicate with potential clients about your company"? A. Customer support. B. Marketing. C. Advertising. D. Community outreach.

Answers

Marketing means "paying to communicate with potential clients about your company." The correct answer is option B.

Marketing is the action of selling a product or service. Marketing refers to all of the activities that a company does to increase customer demand for a product or service. This includes advertising, selling, and promoting. Businesses must constantly advertise their products to increase sales, attract new customers, and increase brand awareness. In a nutshell, marketing entails promoting a product or service to consumers.

Marketing is a significant aspect of any business because it helps in expanding the customer base and increasing profits. A company's success depends on how well they can market their products or services. To be effective, marketing must be well-targeted, relevant, and appealing to the target market. A company that markets its goods and services well has a better chance of gaining loyal customers and expanding its reach.

Marketing can take many forms, including advertising, direct marketing, public relations, and online marketing. Marketing activities must be aligned with a company's overall marketing strategy. A well-planned and executed marketing strategy can help businesses achieve their goals.

A strategy will assist you in identifying your target market and how best to communicate with them. In short, marketing is a set of strategies aimed at promoting products or services to consumers through various channels such as advertising, sales promotion, public relations, and direct marketing. Marketing is an essential part of any business, and it helps businesses reach new heights.

Hence, option B is the right choice.

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The Golson Company uses the periodic inventory system. Info for 2021 is:Sales $1,325,000BI: $340,000Purchases $600,000Purchase returns $6,000Ending inventory $370,000COGS for 2021 is:

Answers

The Cost of Goods Sold (COGS) for 2021 is $564,000 using the periodic inventory system.

Cost of Goods Sold (COGS) for 2021 using the periodic inventory system.

Cost of Goods Sold (COGS) = Beginning Inventory + Purchases - Purchase returns - Ending Inventory

Beginning Inventory = $340,000

Purchases = $600,000

Purchase Returns = $6,000

Net Purchases = Purchases - Purchase Returns

= $600,000 - $6,000= $594,000

Cost of Goods Available for Sale (COGAFS) = Beginning Inventory + Net Purchases

= $340,000 + $594,000= $934,000

Cost of Goods Sold (COGS) = COGAFS - Ending Inventory

= $934,000 - $370,000= $564,000

Therefore, the Cost of Goods Sold (COGS) for 2021 is $564,000 using the periodic inventory system.

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What do you call a website or e-mail address that is created to look like it comes
from a legitimate source? Choose the answer.
pharming
spoofing
spyware
none of the above

Answers

Answer:

this would be called spoofing.

Spoofing is called as  a website or e-mail address that is created to look like it comes from a legitimate source.

What is legitimate source?

Legitimate source is defined as according to the law, something that is legal is acceptable.

It can also be defined as the electoral register is a genuine source of information that is currently available to the public.

A reputable source is defined as the one that has been written by an expert in their field and is free of errors and bias.

A trustworthy source is defined as the one that offers a detailed, well-reasoned idea, argument, or discussion based on solid evidence.

Thus, spoofing is called as  a website or e-mail address that is created to look like it comes from a legitimate source.

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Which part of effective leadership deals with maintaining equity?

Answers

Answer:

the part where you have to lead

Explanation:

Discuss the impact of this Act on the marketing function​

Answers

Explanation:

COPRA helps consumer very much in marketing work. ... Under this act people are very happy beause this act tell the people the right rate of the items, and all things which helps in consumer to protect them from high market price,fake prices of items,etc.

Question 2(Multiple Choice Worth 5 points)
(02.06 MC)
In general, what kind of people earn the most money?
O People with skills that are in high demand and high in supply
O People with skills that are in high demand but low in supply
O People with skills that are in low demand and low in supply
People with skills that are in low demand but high in supply

Answers

Ans: people with skills that are high in demand but low in supply

They earn the most money since skills also follow the law of supply and demand, so consumers are willing to pay more due to low supply

Which demographic groups does Women in Motion serve?(keep it clear and short)

Answers

The demographic group Women in Motion serve is Women who are all talented and Young giving in their best contribution to Cinema.

What is demographic?

Demographic is referred to defining a set of populations based on the characteristics like age, gender, social status, education, qualification, and so on.

"Women in Motion" has referred to a kind of award which was given to effective young female personalities who are raising the position of women in society and providing a contribution to their growth.

The event has emerged as a go-to platform for starting discussions and influencing perceptions around the representation of women in the arts and entertainment industries.

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Define store records ​

Answers

Answer:

this is an important document that helps an organisation to determine the rate of use of raw materials

which of the following pairings represents the truest agonist-antagonist relationship?a. gluteus maximus and illopsoasb. gracillas and tensor fascia lataec. rectus femoris and semimembranosusd. sartorius and tensor facia latae

Answers

The truest agonist-antagonist relationship is represented by rectus femoris and semimembranosus. Option C is correct.

These muscles are located on opposite sides of the thigh and have opposing functions. The rectus femoris is a quadriceps muscle that extends the leg at the knee and flexes the thigh at the hip, while the semimembranosus is a hamstring muscle that flexes the leg at the knee and extends the thigh at the hip.

When one muscle contracts, the other relaxes, allowing for coordinated movement. This balance between agonist and antagonist muscles is crucial for efficient and effective movement.

Therefore, option C is correct.

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If Company A has a shareholders' deficit, which of the following can it do to improve its debt-to-equity ratio?
O increase its advertising budget to draw in more customers
O borrow money from the bank to buy new equipment
o invest in new facilities to draw in more customers
O sell off part of its inventory and/or equipment

Answers

Answer:

sell off part of its inventory and or equipment

Explanation:

Debt/Equity=  

Total Shareholders’ Equity /

Total Liabilities

​  

NEED HELP ASAP PLEASE
please define these words for me

-Right to Redress

-Secure Credit

-Unsecure Credit

-Collateral

-Principal

-Mortgage

-Insurance

HURRY PLEASE

Answers

I think is a carrot
-beetle juice

Completely controlling a business and keeping all the profits are advantages of a _____; raising capital by selling shares and limited liability are advantages of a _____.

Answers

Completely controlling a business and keeping all the profits are advantages of a Sole Proprietorship; raising capital by selling shares and limited liability are advantages of a corporation.

What differentiates a Sole Proprietorship from a Corporation?

A sole proprietorship can be differentiated from a corporation based on a separate existence.

While a corporation has a separate legal existence, a sole proprietorship is not a legal entity different from the owner.

Thus, completely controlling a business and keeping all the profits are advantages of a Sole Proprietorship; raising capital by selling shares and limited liability are advantages of a corporation.

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In the abc automotive manufacturing company, one person is authorized to make a decision, but input from others is gathered before doing so. This is reflective of which type of buying center?.

Answers

The type of buying center that is reflected when one person is authorized to make a decision, but input from others is gathered before doing so in the ABC automotive manufacturing company is the consultative buying center.

A consultative buying center is a type of buying center in which one person makes a decision, but input from others is gathered before doing so. In this type of buying center, the purchasing decision is made by one person, but other members of the organization are consulted before a final decision is made. This approach is often used in organizations where there is a high level of collaboration and teamwork.The consultative buying center is different from other types of buying centers, such as the democratic and autocratic buying centers.

In a democratic buying center, the decision is made by a group of people, with each member having an equal say in the decision-making process. In an autocratic buying center, the decision is made by a single person, with no input from others.

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The collection of interactions a company has with a customer who has already purchased a product is
called
When dealing with customers face-to-face, a good customer service technique is
to
When speaking with customers over the phone, it is important to be aware of
can change the meaning of what is said.

Answers

If the customer appears to be frustrated the company service agent should try to understand the situation and should be familiar with situation.

What is a customer service technique?

A good service technique is a face-to-face interaction, first listen, summarize the problems, and repeat one should try to get a detailed insight into the problem and understand the client's frustration they should remember to tackle the situation carefully. They should have patience, empathy, and other qualities.

What are three important technique of customer service?

Essentially, the three "p"s of professionalism, patience, and a "people-first" mindset are the three key components of good customer service. Although each customer's experience with customer care is unique, as long as you're adhering to these rules, you're on the right route.

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Answer:

The collection of interactions a company has with a customer who has already purchased a product is

called

✔ customer service

.

When dealing with customers face-to-face, a good customer service technique is

to

✔ maintain eye contact

.

When speaking with customers over the phone, it is important to be aware of

✔ tone of voice

because it can change the meaning of what is said.

Actually got it right.

Have a good one!

The three questions of economics are based on decisions made by economies.
What statement best describes why economies must make these decisions?
Econominc must make these decisions?

Answers

The reason why economies must make these decisions is due to the fact that  because resources are limited.

What are resources?

These are all of the factors of productions that are used to take care of the needs of man. They are what is is used in the production process for all goods.

It is important to note that human needs are unlimited but the resources that are needed for meeting these needs are only few in number.

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Please help me. I will mark you as brainliest !!

The rule of supply and demand says that
A. as price increases, demand decreases
B. supply and demand both increase with price
C. as demand increases, price increases
D. as demand decreases, price increases

Answers

Answer:

The answer is C

Explanation:

Let's say that we have 100 cars unique in the world and each car's value is 10000$. Now, let's say that you have 3 cars like the last ones, 3 cars unique in the world? You won't sell them at 10000$, you have to increase the price because the cars are very rare.

How much is 50000 Mexican Peso in US Dollar ?

Answers

50000 Mexican Pesos (MXN) is equivalent to approximately $2,624.27 US Dollars (USD). This is based on the current exchange rate of 19.25 MXN/USD.

Currency exchange rates fluctuate daily and can be affected by a number of different factors such as economic growth, politics, and central bank policies. The Mexican Peso has weakened against the US Dollar in recent months due to the US-Mexico trade dispute and US tariffs.

This has caused the MXN to become less valuable relative to the USD, resulting in the current exchange rate of 19.25 MXN/USD. The exchange rate is expected to remain volatile in the near future as the trade dispute between the two countries continues.

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