Which model can be used to analyze the direct and indirect costs to help firms determine the actual cost of specific technology

Answer:

a) This policy would be advantageous if the demand for sterile needles has elastic characteristics and the cross-price elasticity of demand linking drugs and sterile needles is high and

b) This policy would be unfavorable if the demand for sterile needles is characterized as inelastic while the cross-price elasticity between drugs and needles is high and

Explanation:

a) Under what conditions is this policy viewed as beneficial?

This policy is advantageous when the demand for sterile needles is elastic and the corresponding cross-price elasticity with drugs shows a positive and high relationship.

The elastic demand for sterile needles indicates that the quantity demanded increases more significantly in response to price changes.

The positive cross-price elasticity suggests that as the price of needles decreases, the demand for drugs decreases, assuming they are substitutes. Therefore, as the price of sterile needles approaches zero, the

b) Under what conditions is this policy seen negatively?

This policy turns unfavorable when the demand for sterile needles is inelastic and the cross-price elasticity relating drugs to needles is high and

An inelastic demand for sterile needles suggests the quantity demanded does not increase much with price reductions.

After the dividend, the company's:

a. book value per share will become $6.31.

b. price-earnings ratio will adjust to 13.88.

c. shareholder value per share will amount to $18.60.

d. stock price will be $19.00.

e. earnings per share will equal $.94.

The result is: b

To determine the ex-dividend price per share on the day the dividend is distributed, we follow this method:

Ex-dividend Price = Share price before dividend - dividend amount per share

Ex-dividend price = $18.6 ($19 - $0.40)

Using this ex-dividend price, we can calculate the P/E ratio after the dividend.

P/E = $18.6/$1.34 = 13.88059

Answer:

Net Present Value = $ 34,310.45  

Explanation:

The Net Present Value (NPV) represents the difference between the present value of cash inflows and outflows. A positive NPV indicates a favorable investment decision, while a negative value suggests otherwise.

NPV of a project

NPV = Present Value of Cash inflows - Present Value of Cash outflow  

The cash inflow is characterized as an annuity.

Present Value of annuity= A × 1 - (1+r)^(-n)/r  

A refers to Annual cash flow, - 65,000, r is the discount rate at 12%, and the term is 5 years.

Calculation for Present Value of cash inflow equals 65,000 × (1 - (1.12)^(-5)/0.12) =  234,310.45.

The initial investment is 200,000.

Thus, the Net Present Value calculation is  -  234,310.45  -200,000 = 34,310.45  

Net Present Value = $ 34,310.45  

Answer:

c and m

Explanation:

Considering the provided information,

Consumption function: C = CC + cY

Investment function: I = mr

where,

Y indicates total income

r represents the interest rate

The equation describing the IS curve can be stated as:

Y = C + I

Y = CC + cY + mr

Y - cY = CC + mr

(1 - c)Y = CC + mr

(1 - c)Y - CC = mr

The slope of the IS curve is determined by differentiating 'r' with respect to 'Y',

Thus, the slope is contingent upon the variables c and m.