1. Formulate demand forecasting equation using High-low demand foresting method by considering the following observations from...
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1. Formulate demand forecasting equation using High-low demand foresting method by considering the following observations from 10 years data. Average House hold Income(X) Demand(Y) Highest observation 24 180 Lowest observation 16 120 2. A company has an investment costing $500 with the following expected net cash flows after tax and before depreciation. 12 3 4 5 Net Cash Flows 12 13 15 16 18 Required: Using 8% cost of capital determine the following and decide whether the Year project is accept or not. A. Payback period (PBP), B). Net Present value(NPV) C). Profitability Index 1. Formulate demand forecasting equation using High-low demand foresting method by considering the following observations from 10 years data. Average House hold Income(X) Demand(Y) Highest observation 24 180 Lowest observation 16 120 2. A company has an investment costing $500 with the following expected net cash flows after tax and before depreciation. 12 3 4 5 Net Cash Flows 12 13 15 16 18 Required: Using 8% cost of capital determine the following and decide whether the Year project is accept or not. A. Payback period (PBP), B). Net Present value(NPV) C). Profitability Index
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1 HighLow Method Formula The formula for developing a cost model using the highlow method is as follows Variable cost per unit Highest Activity cost L... View the full answer
Related Book For
Principles of Supply Chain Management A Balanced Approach
ISBN: 978-1337406499
5th edition
Authors: Joel D. Wisner, Keah-Choon Tan, G. Keong Leong
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