You estimate that your cattle farm will generate $0.20 million of profits on sales of $4 million under normal economic conditions and that the degree of operating leverage is 5. a. What will profits be if sales turn out to be $3.2 million? b. What will profits be if sales turn out to be $4.8 million? (Do not round intermediate calculations. Enter your answers in millions rounded to 1 decimal place.)
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You estimate that your cattle farm will generate $0.20 million of profits on sales of $4 million under normal economic conditions and that the degree of operating leverage is 5.
a. What will profits be if sales turn out to be $3.2 million?
b. What will profits be if sales turn out to be $4.8 million? (Do not round intermediate calculations. Enter your answers in millions rounded to 1 decimal place.)
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- You estimate that your cattle farm will generate $1 million of profits on sales of $5.7 million under normal economic conditions and that the degree of operating leverage is 8.a. What will profits be if sales turn out to be $5.0 million? (Negative amount should be indicated by a minus sign. Round your answer to 1 decimal place.) b. What if they are $6.4 million? (Round your answer to 1 decimal place.)ou estimate that your cattle farm will generate $1 million of profits on sales of $5.7 million under normal economic conditions and that the degree of operating leverage is 8.a. What will profits be if sales turn out to be $5.0 million? (Negative amount should be indicated by a minus sign. Round your answer to 1 decimal place.) b. What if they are $6.4 million? (Round your answer to 1 decimal place.)You estimate that your cattle farm will generate $0.30 million of profits on sales of $6 million under normal economic conditions and that the degree of operating leverage is 4. a. What will profits be if sales turn out to be $4.5 million? Note: Leave no cells blank - be certain to enter "0" wherever required. Do not round intermediate calculations. Enter your answers in millions. Profit will ✔ Answer is complete and correct. Profit will decrease to $ b. What will profits be if sales turn out to be $7.5 million? Note: Do not round intermediate calculations. Enter your answers in millions rounded to 1 decimal place. 0✔ million. to million.
- You estimate that your cattle farm will generate $0.15 million of profits on sales of $3 million under normal economic conditions and that the degree of operating leverage is 2. a. What will profits be if sales turn out to be $1.5 million? (Leave no cells blank - be certain to enter "0" wherever required. Do not round intermediate calculations. Enter your answers in millions.) Required: profit will to Millions b. What will profits be if sales turn out to be $4.5 million? (Do not round intermediate calculations. Enter your answers in millions rounded to 1 decimal place.) Required: profit will to MillionsYou estimate that your sheep farm will generate 1.5 million of profits on sales of 4.4 million under normal economic conditions, and that the degree of operating leverage is 6.3. What will sales be if profits turn out to be 1.9 million? Enter your answer in millions, rounded to two decimal places. Number millionAs Financial Manager what would be your decision on assets and investment matters to meet profit maximization? Analyze carefully and encircle your best answer. A financial manager must choose between four alternative Assets: 1, 2, 3, and 4. Each asset costs P35,000 and is expected to provide earnings over three years as described below. 1. Based on the profit- maximization goal, the financial manager would choose ASSET YEAR YEAR A. Asset 1 1 2 B. Asset 2 21,000 | 15,000 | 6,000 9,000 15,000 | 21,000 3,000 20,000 | 19,000 6,000 12,000 | 12,000 1 C. Asset 3 2 D. Asset 4 4
- Pls solve all. If we consider the storage cost of $0.35/bu at the beginning, recalculate the following questions: 1. Suppose the elevator buys 100,000 bushels of corn on Nov 1 at $2.00/bu in cash market, and store the corn to sell in the cash market until Jun 1 at $2.30/bu. What is the elevators gain or loss in cash market? 2. On Nov 1, the elevator could sell corn futures contract at $2.50/bu and buy the contract back on Jun 1 at $2.4/bu. What is the elevators gain or loss in futures market? 3. Calculate the basis for both Nov 1 and Jun 1. 4. Calculate the total return of corn to the elevator through such hedging in the futures market? 5. What is the net profit/loss through above hedging in the futures market?For example, if you a simple average of 5 year of either income or cash flow of:year 1 100year2 100year 3 100year 4 100year 5 100total 500average 100cap rate 0.2value 500 Now you go to the balance sheet as of the valuation date and have a cash balance of $500 and the industry working capital benchmark is $200, is it fair to add $300 to the value of the business? That is really the question. In practice, particularly matrimonial valuations, some practitioners would opine, if the owner sells the business they would realize $500 in value plus $300 in excess working capital for a total value of $800. Remember the value included the $300 ($100 each year), possibly not distributed cash flow/earnings, is that really value?A company is thinking in investing in one of two potential new products for sale. The projections are as follows: year Revenue/cost £ (Product S) Revenue/cost £ (Product V) 0 (150,000) outlay (150,000) outlay 1 14000 15000 2 24000 25333 3 44000 52000 4 84000 63333 a) Calculate the payback period for both products in years and months, not as a decimal. Please present answer to nearest month.b) Calculate NPV of both products (to 1 d.p.) assuming a discount rate of 7%.c) Which product should be chosen and why?d) Calculate the IRR for Product V only using 1% and 17% to 2 d.p.e) Outline the advantages and disadvantages of the IRR and payback using appropriate academic sources.
- A company is thinking of investing in one of two potential new products for sale. The projections are as follows: Year Revenue/cost £ (Product A) Revenue/cost £ (Product B)0 (150,000) outlay (150,000) outlay 1 24,000 12,0002 24,000 25,3333 44,000 52,0004 84,000 63,333 1.Calculate the payback period for both products in years and months, not as a decimal. Please present answer to nearest half a month.The Borstal Company has to choose between two machines that do the same job but have different lives. The two machines have the following costs: Year Machine A Machine B $42,500 10,500 10,500 10,500 + replace $52,500 9,000 9,000 9,000 9,000 + replace 4 These costs are expressed in real terms. Suppose that technological change is expected to reduce costs by 10% per year. There will be new machines in year 1 that cost 10% less to buy and operate than A and B. In year 2, there will be a second crop of new machines incorporating a further 10% reduction, and so on. Suppose you are Borstal's financial manager. If you had to buy one or the other machine and rent it to the production manager for that machine's economic life, what annual rental payment would you have to charge at the end of the first year and how would this alter in subsequent years given the expected technological changes? Assume a 9% real discount rate and ignore E taxes. (Do not round intermediate calculations. Enter your…Your company is expected to earn (as a cash flow) $3 million next year, $3.06 million the following year, $3.1212 the year after that, and it will continue to grow by 2% per year indefinitely. Using a discount rate of 8%, what is the value of the company? (Do not round intermediate calculations. Report your result in millions of dollars. Round the final answers to 2 decimal places. Omit $ sign and the word “million” in your response. For example, if your answer is $1,234,567 just write 1.23.)