A production manager is responsible for a production budget and can potentially earn an additional bonus for minimising producti

Answer:

1. $501.54

2. 1.01

3. -$5,728.56

Explanation:

The calculations are detailed below:

1. For determining the net present value

Year    Cash flow     Discount factor @20%         Present value  

0         $75,000         1                                               $75,000

1          $20,000        0.8333333333                          $16,666.67

2         $25,000        0.6944444444                       $17,361.11

3         $30,000        0.5787037037                       $17,361.11

4         $50,000        0.4822530864                       $24,112.65

The total of cash inflows is                                                   $75,501.54

NPV                                                                              $501.54                                      

The discount factor is to be calculated as follows:

= 1 ÷ (1 + rate) ^ years

2. The benefit-cost ratio is calculated by:

= Total Present Value ÷ Initial Investment

= $75,501.54 ÷ $75,000

= 1.01

3. For net present value as calculated

Year    Cash flow     Discount factor @20%         Present value  

0         $75,000         1                                               $75,000

1          $20,000        0.8064516129                     $16,129.03

2         $25,000        0.650364204                    $16,259.11

3         $30,000        0.5244872613                    $15,734.62

4         $50,000        0.4229735978                    $21,148.68

The sum of cash inflows is                                                 $69,271.44

NPV                                                                            -$5,728.56                                  

The discount factor is to be computed as stated:

= 1 ÷ (1 + rate) ^ years

Answer:

C). Professional Conduct

Explanation:

Ethical conduct is defined by adherence to moral standards such as equity, honesty, and fairness. This type of behavior acknowledges individual differences and upholds equal rights and the dignity and integrity of all. It represents a crucial facet of ‘professional conduct’ fostering professionalism, healthy workplace interactions, mutual understanding, and enhancing productivity. Therefore, option C is the correct choice.

Response: a. $18,000

Clarification:

Cumulative Preferred Shares are types of shares whereby the company consistently pays Preferred dividends and if it cannot do so in any given year, the unpaid amount accumulates until they can pay it later.

In the question posed, the dividends owed to Preferred Shares are calculated as follows:

= 4% * 200,000

= $8,000

In the first year, $8,000 was allocated for dividends.

= 8,000 - 8,000

= 0

This implies that there are no preferred dividends owed from Year 1.

In Year 2, $18,000 was declared for dividends,

= 18,000 - 8,000

= $8,000

This indicates that in Year 2, the company managed to fulfill its Preferred dividends and still had funds available to distribute to Common Shareholders.

In Year 3, $24,000 was dedicated to dividends.

= 24,000 - 8,000

= $16,000

Therefore, in year 3, the company had enough funds to cover its Preferred Dividend commitments, meaning it paid out all of the $8,000 due to the Preferred Shareholders.

Answer:

Joint Venture

Explanation:

A joint venture occurs when two or more firms enter into a partnership agreement to pursue shared goals within a specific timeframe. This collaboration creates synergy through the shared resources of the involved organizations. This scenario is similar, with three organizations forming a contract and agreeing to pool their resources to achieve a mutual objective. Once this goal is accomplished, the partnership (Joint Venture) will be terminated.