inputs is $400‚000 per day. First scenario assuming that total fixed cost equals $1‚000‚000: * TLC 4‚000‚000 * TFC $1‚000‚000 * TVC 4‚400‚000 * AVC 22. * ATC 27. * WP (L) 4. * TC 5‚400‚000 * TR 5‚000‚000 TR = $5‚000‚000 › $4‚400.000 TVC PROFIT= -$600‚000 (loss) Price = $25.›$22. AVC = -$3. Layoffs= loss $600‚000/$80. = 7‚500 workers After laying off 7‚500 workers‚ this firm is running at a profit of $200‚000
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Professional Publishing; 2001. Francis X. McConville; The pilot plant real book; A unique Handbook for the chemical process industry; 4-7; FXM Engineering and Design; 2002. 7. Energy balance General energy balance on double wall CSTR T Ta Tc T _
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(1) Total cost represents the lowest total dollar expense needed to produce each level of output q. TC rises as q rises. (2) Fixed cost represents the total dollar expense that is paid out even when no output is produced. FC is unaffected by any variation in the quantity of output. (3) Variable cost represents expenses that vary with the level of output and includes all costs that are not fixed. TC=FC+VC 2. Definition of marginal cost The marginal cost of production is the additional cost incurred
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Assignment 1 NPV: = -PF + FV /(1+r) PV = FV/(1+r) or PV = C1/1-r + C2/(1-r)2 + .. + CT/(1-r)T Rate of return: R=(Vf-Vi)/Vf Rate r compounded m times a year: FV = C(1+r/m)mt 10% semiannually = 10.25% annually‚ Hence 10.25 is said to be the Effective Annual Yield (EAY) 1+EAY = (1+r/m)mt Assignment 2 Perpetuity The value of D received each year‚ forever: PV = D/r Annuity The value of D received each year for T years: PV = (D/r)*[1 – 1/(1+r)T] Growing Perpetuity PV = D/(R-g) R: the
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soon followed. In 1908‚ the public telephone network began service in Nairobi‚ the capital‚ and in Mombasa. In Nairobi that year‚ eighteen telephone subscribers were connected. In the 1980s‚ growth of Kenya ’s network occurred on a larger scale. KP&TC undertook three telecommunications development programs: the First Program ran from 1979 to 1983; the Second Program began in 1984 and was completed in 1988; and World Bank funding for the Third Program was negotiated in 1985-86‚ with disbursements
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QUEUING THEORY HISTORY • Queuing theory had its beginning in the research work of a Danish engineer named A.K. Erlang. • In 1909‚ Erlang experimented with fluctuating demand in telephonic traffic. • 8 years later‚ he published a report addressing the delays in automatic dialing equipment. • At the end of World War II‚ Erlang’s early work was extended to more general problems and to business applications of waiting lines. M/M/1 SINGLE - CHANNEL WITH POISSON Azenith Cayetano
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Challenges faced by Indian IT: 1. Uncertain global economy: The Indian IT outsourcing industry gets about 75% of its revenues from US and Europe. The renewed concern regarding the European sovereign debt has led to companies slowing down their IT spending. BFSI segment has been the biggest contributor to Indian IT revenues. As shown in the figure below‚ the recent turmoil in Europe & US has resulted in slowing demand in BFSI segment. Source: Business Standard 2. Protectionist measures: There
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Kenco Engineering Corporation Strategy-Driven Costing & Lean Management Kenco Engineering Corporation Strategy-Driven Costing & Lean Management Question 1) Generally Accepted Accounting Principles require that product costs include all manufacturing costs and only manufacturing costs. Activity-based costing usually does not include all manufacturing costs and will often include nonmanufacturing costs. Therefore‚ ABC is not currently acceptable under GAAP. Kenco’s costing system is
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But there was another thought that kept coming back to the 47 year old leader of this highly successful $1.8 billion consulting firm (See Exhibit 1 for a twenty year growth history). If this represented the tip of McKinsey’s knowledge and expertise iceberg‚ how well was the firm doing in developing‚ capturing‚ and leveraging this asset in service of its clients worldwide? Although the Practice Olympics was only one of several initiatives he had championed‚ Gupta wondered if it was enough‚ particularly
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Equity Valuation Lecture Map Definitions of Value Book value‚ Liquidation value‚ Intrinsic value‚ Market value Dividend discount models Constant-growth Multi-stage growth Value Metrics and Determinants of Value Current earnings and growth P/E Lesmond 1 Book Value of Equity The firm’s equity value‚ or stock value‚ is stated right on the firm’s books This is NOT the market value of equity Book value per share of Equity is the value of common equity on the books‚ divided
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