Find:
a) K/ L
b) Y/ L
c) Total Output
As;
Y =(K) . (L)
Year
K (Capital)
L (Labor)
1
200
1000
2
250
1000
3
250
1250
4
300
1200
Find:
a) K/ L
b) Y/ L
c) Total Output
As;
Y =(K) . (L)
Year | K (Capital) | L (Labor) |
1 | 200 | 1000 |
2 | 250 | 1000 |
3 | 250 | 1250 |
4 | 300 | 1200 |
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Related questions
The Laurenster Corporation has determined the cli-
ent will pay them a $10,000 bonus if they complete
the project in 14 weeks or less.
The associated normal times and costs as well as the
crash times and costs are shown below.
| Activity | Normal time | Crash time | Normal cost | Crash cost |
| a | 3 | 2 | 600 | 1200 |
| b | 6 | 4 | 1200 | 2400 |
| c | 5 | 2 | 1200 | 2400 |
| d | 4 | 3 | 1200 | 1800 |
| e | 7 | 6 | 1200 | 1800 |
| f | 7 | 4 | 1200 | 3000 |
| g | 5 | 1 | 2400 | 4800 |
| h | 5 | 2 | 1200 | 3000 |
| i | 5 | 3 | 1800 | 2400 |
| j | 2 | 2 | 300 | 300 |
| k | 4 | 4 | 300 | 300 |
| l | 3 | 3 | 300 | 300 |
Considering the costs involved to crash the project determine if the Laurenster Corporation should
crash the project to 14 weeks to receive the bonus.
the answer for the problem isYes. The cost to crash is $2,200 i need to know why or how?
1.)Company ABC has sales of $1,650,000, cost of goods sold of$600,000, EBIT of $450,000, interest expense of $70,000, and a taxrate of 27%. If the company paid $57,000 in dividends what is theaddition to retained earnings.
2.)At the beginning of the year, a firm had current assets of$121,306 and current liabilities of $124,509. At the end of theyear, the current assets were $122,418 and the current liabilitieswere $103,718. What is the change in net working capital?
3.)
Use the Income Statement and Balance Sheet below to calculatethe companies free cash flow.
Income Statement | 2017 |
Net Sales | 675 |
Cost of goods sold | 210 |
Depreciation | 50 |
EBIT | 415 |
Interest Paid | 15 |
EBT | 400 |
Taxes (30%) | 120 |
Net Income | 280 |
Dividends | 105 |
Addition to Retained Earnings | 175 |
Assets | 2016 | 2017 | Liabilities and Shareholders equity | 2016 | 2017 |
Current Assets | Current Liabilities | ||||
Cash | 100 | 125 | Accounts Payable | 200 | 250 |
Accounts Receivable | 250 | 350 | Notes Payable | 150 | 225 |
Inventory | 400 | 375 | |||
Total Current Assets | 750 | 850 | Total Current Liabilities | 350 | 475 |
Long term debt | 300 | 250 | |||
Fixed Assets | Stockholders equity | ||||
PPE | 1500 | 1700 | Common stock | 300 | 300 |
Accumulated Depreciation | 400 | 450 | Retained earnings | 900 | 1075 |
Net PPE | 1100 | 1250 | Total Shareholderâs Equity | 1200 | 1375 |
Total Assets | 1850 | 2100 | Total Liabilities & Equity | 1850 | 2100 |
4.)A firm has net working capital of $900. Long-term debt is$4,200, total assets are $8,000, and fixed assets are $4,300. Whatis the amount of the total liabilities?
Given the table below and assuming a 12% discount rate for each project:
| Year | Project X | Project Y |
| 0 | (10,000) | (10,000) |
| 1 | 6,500 | 1000 |
| 2 | 3,000 | 3,000 |
| 3 | 3,000 | 3,000 |
| 4 | 1,000 | 6,500 |
i. Calculate the NPV for each project
ii. These are very similar cash flows, but can you explain why the NPV for each project is different?
iii. What do you expect the IRR for each project to be with respect to the NPV? Explain your answer.
iv. Which project would you recommend for implementation and why?
Textbook healthcare finance 6th edition L Gapenski & K Reiter (2016)
