What is your advice to danielle? danielle hastings was recently hired as a cost analyst by carenet medical supplies inc. one of danielleās first assignments was to perform a net present value analysis for a new warehouse. danielle performed the analysis and calculated a present value index of 0.75 . the plant manager, jerrod moore, is very intent on purchasing the warehouse because he believes that more storage space is needed. jerrod asks danielle into his office and the following conversation takes place: jerrod: danielle, youāre new here, arenāt you? danielle: yes, i am. jerrod: well, danielle, iām not at all with the capital investment analysis that you performed on this new warehouse. i need that warehouse for my production. if i donāt get it, where am i going to place our output? danielle: well, we need to get product into our customersā hands. jerrod: i agree, and we need a warehouse to do that. danielle: my analysis does not support constructing a new warehouse. the numbers donāt lie; the warehouse does not meet our investment return targets. in fact, it seems to me that purchasing a warehouse does not add much value to the business. we need to be producing product to satisfy customer orders, not to fill a warehouse. jerrod: the headquarters people will not allow me to build the warehouse if the numbers donāt add up. you know as well as i that many assumptions go into your net present value analysis. why donāt you relax some of your assumptions so that the financial savings will offset the cost? danielle: iām willing to discuss my assumptions with you. maybe i overlooked something. jerrod: good. hereās what i want you to do. i see in your analysis that you donāt project greater sales as a result of the warehouse. it seems to me that if we can store more goods, then we will have more to sell. thus, logically, a larger warehouse translates into more sales. if you incorporate this into your analysis, i think youāll see that the numbers will work out. why donāt you work it through and come back with a new analysis. iām really counting on you on this one. letās get off to a good start together and see if we can get this project accepted
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Business, 21.06.2019 19:00
Spirula trading inc sublets a part of its offices building to jade inc. for a period of ten years . where will the company disclose this information?
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Business, 22.06.2019 06:40
Self-interest achieve societyās economic goals because producers know which goods consumers want the most. as consumers and producers exercise their freedom to act in their own self-interest, markets will produce the desired goods at the lowest possible cost. consumers and producers both operate based on societyās economic goals. consumers know which goods can be produced at the lowest cost. there is a wide variety of desired goods and services in a market system because producers determine what to produce. consumers change their minds frequently. there is always a need to produce something new and improved. individual wants are diverse. what is produced is ultimately determined by consumers, because if the goods offered are not what consumers want, consumers will not buy them. producers, because they are driven by profits. producers, because they determine what to produce. consumers, because they participate in marketing surveys.
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Business, 22.06.2019 12:50
Afirmās production function is represented by q(m,r) = 4m 3/4r1/3, where q denotes output, m raw materials, and r robots. the firm is currently using 6 units of raw materials and 12 robots. according to the mrts, in order to maintain its output level the firm would need to give up 2 robots if it adds 9 units of raw materials. (a) true (b) false
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Business, 22.06.2019 14:30
Your own record of all your transactions. a. check register b. account statement
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What is your advice to danielle? danielle hastings was recently hired as a cost analyst by carenet m...
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