Deck 5 Mix Flashcards
When is NPV better than IRR
when cash inflows and outlfows alternate diff amounts because irr is a % and npv is a $
residual income
assetsimputed rate-salessales return
when is a spin off best?
fresh start,
total cost savings calc
initial cost-cost savings
how are days in AR calculated?
% of daily sales taken discount vs % of daily sales no dicount multiply each by days outstanding 10 days and 30 days. dont factor in discount
how is pre-tax profit calculated?
after tax profit/(1-tax rate)
CM ratio*SP=
cm per unit
how are unit sales calculated to get break even sales with a desired profit
take fixed costs+target sales/cmperunit
in what markets are perfect flat, horizontal demand curves?
perfect competition-price takers,not setters
perfect competition has no entry or exit barriers
how is an oliogopoly doffernt from monopolistic?
ensure differntiation and adjust volume where monopolistic plans for differntiation
strategic planning begins with…
defining mission and vison, then sets goals before the plan is started
benefits to JIT
cost reduction
Reduced WIP
quality imporvement
why would a company offer a 2/10 net 30 discount?
to increase its cash and/or keep up with competetors
what type of asset/debt mix poses the greatest risk?
permenet current assets
w/ short term debt bc it does not show a company being able to pay off its debts when st
what factors affect safety stock?
lead time, uncertainty levels in shipment delay, customer dissatisfaction,
