Answer:
$12,615.21
Explanation:
we need to determine the future value of the loan:
future value = present value x (1 + interest rate)ⁿ
present value = $12,000n = 365 days (compounded daily)interest rate = 5% / 365 days = 0.05/365 = 0.000136986future value = $12,000 x (1 + 0.000136986)³⁶⁵ = $12,000 x 1.051267496 = $12,615.21
Skolits Corp. issued 15-year bonds 2 years ago at a coupon rate of 7.3 percent. The bonds make semiannual payments. If these bonds currently sell for 103 percent of par value, what is the YTM?
Answer:
6.94%
Explanation:
The yield to maturity can be computed using excel rate function found below:
=rate(nper,pmt,-pv,fv)
nper is the coupons that bond has left to pay i.e 26 semiannual coupons in 13 years
pmt is the semiannual coupon amount i.e $1000*7.3%*6/12=36.5
pv is the current market price i.e 103%*$1000=$1030
fv is the face value of $1000
=rate(26,36.5,-1030,1000)=3.47%
semiannual yield =3.47%
annual yield =3.47% *2=6.94%
Select the appropriate reporting method for each of the items listed below.
Item Reporting Method
1. Accounts payable.
2. Current portion of long-term debt.
3. Sales tax collected from customers.
4. Notes payable due next year.
5. Notes payable due in two years.
6. Advance payments from customers.
7. Commercial paper.
8. Unused line of credit.
9. A contingent liability with a probable likelihood of
occurring within the next year and can be estimated.
10. A contingent liability with a reasonably possible likelihood
of occurring within the next year and can be estimated.
Answer:
Items --- Reporting Method
1 . Accounts payable - Current liability
2 . Current portion of long-term debt - Current liability
3 . Sales tax collected from customers - Current liability
4 . Notes payable due next year - Current liability
5 . Notes payable due in two years - Long-term liability
6 . Advance payments from customers - Current liability
7 . Commercial paper - Current liability
8 . Unused line of credit - Disclosure note only
9 . A contingent liability that is probable likelihood of occurring within the next year and can be estimated - Current liability
10 . A contingent liability that is reasonably possible likelihood of occurring within the next year and can be estimated - Disclosure note only
Gullett Corporation had $32,000 of raw materials on hand on November 1. During the month, the Corporation purchased an additional $81,000 of raw materials. The journal entry to record the purchase of raw materials would include a:
Answer:
Dr Raw materials $81, 000
Cr Accounts payable $81,000
Explanation:
Preparation of the journal entry to record the purchase of raw materials for Gullett Corporation
Since we were told that the Corporation already had the amount of $32,000 of raw materials on hand in which they later purchased an additional amount of $81,000 of the raw materials this means we are going to record the Journal entry by Debiting Raw materials with the amount of $81, 000 which is the additional amount of the raw materials purchased and to Credit Accounts payable with the same amount of $81,000.
Dr Raw materials $81, 000
Cr Accounts payable $81,000
(To record purchase of raw materials)
Meade Nuptial Bakery makes very elaborate wedding cakes to order. The company has an activity-based costing system with three activity cost pools. The activity rate for the Size-Related activity cost pool is $1.22 per guest. (The greater the number of guests, the larger the cake.) The activity rate for the Complexity-Related cost pool is $36.21 per tier. (Cakes with more tiers are more complex.) Finally, the activity rate for the Order-Related activity cost pool is $83.33 per order. (Each wedding involves one order for a cake.) The activity rates include the costs of raw ingredients such as flour, sugar, eggs, and shortening. The activity rates do not include the costs of purchased decorations such as miniature statues and wedding bells, which are accounted for separately. Data concerning two recent orders appear below: Ericson Wedding Haupt Wedding Number of reception guests 72 191 Number of tiers on the cake 6 4 Cost of purchased decorations for cake $ 21.45 $ 77.65 Assuming that all of the costs listed above are avoidable costs in the event that an order is turned down, what amount would the company have to charge for the Ericson wedding cake to just break even
Answer:
$409.88
Explanation:
The computation of the amount that the company have to charge for break even is shown below:
Particulars Ericson Wedding Rate Amount
Guest 72 $1.22 $87.84
Tiers 6 $36.21 $217.26
Orders 1 $83.33 $83.33
Decoration 1 $21.45 $21.45
Total $409.88
We simply applied the number of units with the rate so that the final amount could come
Feldpausch Corporation has provided the following data from its activity-based costing system: Activity Cost Pool Total Cost Total Activity Assembly $ 1,398,250 65,800 machine-hours Processing orders $ 69,451 2,520 orders Inspection $ 184,800 2,400 inspection-hours The company makes 920 units of product W26B a year, requiring a total of 1,290 machine-hours, 61 orders, and 40 inspection-hours per year. The product's direct materials cost is $57.55 per unit and its direct labor cost is $13.56 per unit. The product sells for $123.50 per unit. According to the activity-based costing system, the product margin for product W26B is:
Answer:
$16,125.15
Explanation:
DATA:
Activity Cost Pool Total Cost Total Activity
Assembly $1,398,250 65,800 machine hours
Processing orders $ 69,451 2,520 orders
Inspection $ 184,800 2,400 inspection-hours
Units produced = 920
Machine hours required = 1290
Processing orders required= 61
Inspection hours required = 40
Direct material cost = 57.55
Direct labor cost = 13.56 per unit
Selling price = 123.50
Solution
Sales Revenue (920 ×$123.5) $113,620
LESS: Costs
Direct Materials (920 × $57.55) $52,946
Direct labor (920 ×$13.56) $12,375.2
Assembly (1,398,250/65,800) = 21.25 × 1290= $27412.5
Processing (69,451/2,520) = 27.55 × 61 = $1681.15
Inspection (184,800/2,400) = 77 x 40 = $3080
Total Cost ($97494.65)
Product margin $16,125.15
You plan to borrow $35,000 at a 7.5% annual interest rate. The terms require you to amortize the loan with 7 equal end-of-year payments. How much interest would you be paying in Year 2
Answer:
$2,250
Explanation:
Since terms require you to amortize the loan with 7 equal end-of-year payments, it implies that interest will be paid on the amount outstanding balance for a whole year.
The would be paid in Year 2 can therefore be calculated as follows:
Equal amount of the loan principal = Loan amount / Number of equal end-of-year payments = $35,000 / 7 = $5,000
Loan balance outstanding throughout Year 2 = Loan amount - Year 1 end-of-year payment = $35,000 - $5,000 = $30,000
Year 2 interest payable = Loan balance outstanding throughout Year 2 * Annual interest rate = $30,000 = 7.5% = $2,250.
Therefore, you would be paying $2,250 interest in Year 2.
E6-23 (similar to) Aunt Betty Bakery reported net sales revenue of $ 59 comma 000 and cost of goods sold of $ 17 comma 000. Compute Aunt Betty's correct gross profit if the company made either of the following independent accounting errors. a. Ending merchandise inventory is overstated by $ 4 comma 000. b. Ending merchandise inventory is understated by $ 4 comma 000.
Answer:
a. Ending merchandise inventory is overstated by $4,000.
net sales revenue of $59,000
cost of goods sold of $17,000 + $4,000 = $21,000
gross profit = $38,000
Since ending inventory was overstated, it means that COGS were understated.
b. Ending merchandise inventory is understated by $4,000.
net sales revenue of $59,000
cost of goods sold of $17,000 - $4,000 = $13,000
gross profit = $46,000
Since ending inventory was understated, it means that COGS were overstated.
Footsteps Co. has a bond outstanding with a coupon rate of 5.4 percent and annual payments. The bond currently sells for $1,007.49, matures in 18 years, and has a par value of $1,000. What is the YTM of the bond
Answer: 5.33%
Explanation:
Use a financial calculator to get this faster.
On the calculator input the following.
FV = 1,000 because when it matures in 18 years it will be worth this
PV = -1007.49 as that is the current value. Should be in negative.
PMT = 54 because the coupon payments are 5.4% from the par of $1,000 which is $54.
N = 18
Click compute / CPT and then click I/Y.
You should get a YTM of 5.33%.
railway cabooses just paid its annual dividend of 1.70 per share. The company has been reducing the dividends by 11.3 percent each year. How much are you willing to pay today to purchase stock in this company if your required rate of return is 12 percent?
Answer:
8.24
Explanation:
According to the given situation, the computation of purchase stock is shown below:-
Purchase price = Dividend in paid in next year ÷ (required rate of return - Growth rate)
= (1.70 ÷ (1 - 0.113)) ÷ (0.12 - (-0.113))
= 1.92 ÷ 0.233
= 8.24
Therefore for computing the purchase price we simply applied the above formula.
McHale Company does business in two customer segments, Retail and Wholesale. The following annual revenue information was determined from the accounting system's invoice information:
20Y5
Retail $249,570
Wholesale $366,685
Total Revenue $616,255
20Y4
Retail $265,500
Wholesale $324,500
Total Revenue $590,000
Prepare a horizontal analysis of the segments. Round percentages to one decimal place. Enter negative values as negative numbers
Answer:
McHale Company
Horizontal Analysis of the segments
For the years 20Y4 and 20Y5
20Y5 20Y4 Difference amount Difference Percent
Retail $249,570 $265,500 $15,930 6.0%
Wholesale $366,685 $324,500 $42,185 13.0%
Total revenue $616,255 $590,000 $58,115 3.85%
Difference Percent Working
Retail= $15,930 / $265,500 * 100 = 6%
Wholesales = $42,185 / $324,500 * 100 = 13%
Total revenue = $58,115 / $590,000 * 100 = 3.85%
Webby Inc. is a web development company. Webby’s monthly production function for developing websites is given in the table below. Webby pays $4,000 a month in rent for office space and equipment. It pays each programmer $3,000 a month. There are no other production costs. Fill in the table of production costs.
Answer and Explanation:
The computation of the filling of the given table for the production cost is shown in the attachment below:
As we know that
Total cost = Fixed cost + variable cost
Average fixed cost = fixed cost ÷ websites
Average Variable cost = Variable cost ÷ websites
Therefore the average total cost is
= Average fixed cost + average variable cost
The marginal cost is
= Change in total cost ÷ change in quantity
These formulas are used to complete the table as given below.
1. The roles of money Brian is heading out to lunch. He goes to the bank and withdraws $30 from his savings account. He heads to a local deli that sells half sub sandwiches for $4.99 and whole subs for $7.99. Brian decides that he's pretty hungry and goes for the whole. He pays with a $10 bill and tells the cashier to keep the change. Identify what role money plays in each of the following parts of the story. Hint: Select each role only once. Role of Money Medium of Exchange Unit of Account Store of Value Brian can easily determine that the whole sandwich, while twice as long as the half, is priced at less than twice as much. Brian accumulates money in his savings account for future purchases. Brian buys his lunch with a $10 bill.
Answer:
Brian can easily determine that the whole sandwich, while twice as long as the half, is priced at less than twice as much.
unit of accountBrian accumulates money in his savings account for future purchases.
Store of valueBrian buys his lunch with a $10 bill.
Medium of exchangeExplanation:
Money's four functions are:
Medium of exchange = you can use money to purchase or sells goods and services. Unit of account = money helps us to understand the relative value of goods and services, since the higher the price, the higher the value of a good or service is. Store of value = you can save money for future useStandard of deferred payment = money allows people to take or hand out loans that will be repaid in the futureA North Face retail store in Chicago sells 500 jackets each month. Each jacket costs the store $100 and the company has an annual holding cost of 25 percent. The fixed cost of a replenishment order (including transportation cost) is $100. The store currently places a replenishment order for Q.
1. What is the annual holding and ordering cost?
2. On average, how long does a jacket spend in inventory?
3. If the retail store wants to minimize ordering and holding cost, what order size do you recommend?
4. How much would the optimal order reduce holding and ordering cost relative to the current policy?
Answer:
(1) The annual holding cost is =$6250, The ordering costs is = 500 units
(2) The total cost is = $7450
(3)224 unit
(4) $1,864.30
Explanation:
Solution
Given that:
The annual demand = 520 units * 12
= 6,240 units
The cost per order = $100 per order
The Carrying Cost = 0.25% * $100
= 25 per unit per year
Thus
(1) The Ordering quantity = 500 units every month
The annual holding cost =0.5*quantity ordered*holding cost
The Annual Holding cost = 0.5*500*25
Annual Holding cost =$6250
(2) The ordering (Annual)cost = number of orders *cost per order
Annual ordering cost =(500*12/500)*100
Annual ordering cost =$1200
Total cost = 6250+1200=7450
(3)Thus
EOQ=(2*D*S/h)^0.5
EOQ=(2*6240*100/25^)0.5
EOQ=223.43
=224 unit
(4)The ordering cost =(6240/224)*100=2785.70
Holding cost=0.5*224*25
=2800
Total cost= 2785.70+2800
Total cost=5585.70
Total savings = 7450 - 5585.70
= $1,864.30
A company is evaluating a new 4-year project. The equipment necessary for the project will cost $3,050,000 and can be sold for $670,000 at the end of the project. The asset is in the 5-year MACRS class. The depreciation percentage each year is 20.00 percent, 32.00 percent, 19.20 percent, 11.52 percent, and 11.52 percent, respectively. The company's tax rate is 34 percent. What is the aftertax salvage value of the equipment?
Answer:
$718,606.4
Explanation:
The first step is to calculate the accumulated depreciation
=$3,050,000×(0.2+0.32+0.192+0.1152)
= $3,050,000×0.8272
= $2,522,960
The accumulated depreciation is then subtracted from the book value in purchase to get the book value on sale
= $3,050,000-$2,522,960
= $527,040
The next step is to subtract the book value on sale from the salvage value
= $527,040-$670,000
= -$142,960
Loss of - $142,960
The tax gain on disposal can be calculated as follows
= -$142,960×34/100
= -$142,960×0.34
= -$48,606.4
Therefore, the after-tax salvage value can be calculated as follows
= salvage value-tax disposal
= $670,000-(-48,606.4)
= $670,000+$48,606.4
= $718,606.4
Hence the aftertax salvage value of the equipment is $718,606.4
An associate professor of physics gets a $200 a month raise. She figures that with her new monthly salary she can buy more goods and services than she could buy last year.
a. Her real and nominal salary have risen.
b. Her real and nominal salary have fallen.
c. Her real salary has risen and her nominal salary has fallen.
d. Her real salary has fallen and her nominal salary has risen.
Answer:
a. Her real and nominal salary have risen
Explanation:
Her nominal salary is the amount she earns. the $200 increase is an increase in her nominal salary.
Her real salary is calculated in the amount of goods and service she can purchase given her income. Since with the $200, she can buy more goods and services, her real salary has also increased.
Waterway, Inc. manufactures two products: missile range instruments and space pressure gauges. During April, 50 range instruments and 200 pressure gauges were produced, and overhead costs of $87,550 were estimated. An analysis of estimated overhead costs reveals the following activities.
Activities Cost Drivers Total Cost
1. Materials handling Number of requisitions $40,800
2. Machine setups Number of setups 25,750
3. Quality inspections Number of inspections 21,000
$87,550
The cost driver volume for each product was as follows.
Cost Drivers Instruments Gauges Total
Number of requisitions 420 630 1,050
Number of setups 225 260 485
Number of inspections 265 225 490
Air United, Inc. manufactures two products: missil
Air United, Inc. manufactures two products: missil
Determine the overhead rate for each activity.
Overhead Rate
Materials handling $
Machine setups $
Quality inspections $
Answer:
Results are below.
Explanation:
Giving the following information:
Activities Cost Drivers Total Cost
Materials handling Number of requisitions $40,800
Machine setups Number of setups 25,750
Quality inspections Number of inspections 21,000
Cost Drivers Instruments Gauges Total
Number of requisitions= 1,050
Number of setups= 485
Number of inspections= 490
We need to use the following formula for each activity:
Predetermined manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base
Materials handling= 40,800/1,050= $38.86 per requisition
Machine setups= 25,750/485= $53.1 per setup
Quality inspections= 21,000/490= $42.86 per inspection
What will a bond be worth on the day it matures? Group of answer choices $0 $100 its face value (plus remaining coupon, if applicable) its remaining coupon, if applicable
Answer: Its face value (plus remaining coupon
Explanation:
On the day a bond matures it is to be paid back to the investors therefore it will be at it's face value to reflect the amount owed to investors. The last coupon may still have to be paid so it also be added to the bond on this date.
For example, if a bond is issued at $100 face value and will.mature in 5 years but is currently trading at $95, at the end of the 5th year it will be trading at $100 because that it what the Issuer of the bond will pay back.
George's Chemicals allocates overhead based on machine hours. Selected data for the most recent year follow. Estimated manufacturing overhead cost $235,000 Actual manufacturing overhead cost $244,200 Estimated machine hours 20,300 Actual machine hours 22,700 The estimates were made as of the beginning of the year, while the actual results were for the entire year. The predetermined manufacturing overhead rate per machine hour is closest to
Answer:
$11.58 per machine hour
Explanation:
Given that: Estimated Manufacturing overhead cost =$235,000, Actual manufacturing overhead cost = $244,200 Estimated machine hours = 20,300, Actual machine hours= 22,700
The predetermined manufacturing overhead rate per machine hour = Estimated manufacturing overhead cost / Estimated machine hours
= $235,000 / 20,300
= $11.5763
= $11.58 per machine hour
A stock has an expected return of 15.0 percent, its beta is 0.90, and the risk-free rate is 5.3 percent. What must the expected return on the market be
Answer:
16.07%
Explanation:
The computation of the expected return on the market is shown below
As we know that
Expected Return on stock = Risk free return + beta ( Expected Market Rate of Return - Risk free return )
15 % = 5.3% + 0.90 × (Expected Market Rate of Return - 5.3%)
15 % - 5.3% ÷ 0.90 = Expected Market Rate of Return - 5.3%
10.77% = Expected Market Rate of Return - 5.3 %
So, expected market rate of return is
= 10.77 + 5.3%
= 16.07%
We simply applied the above formula
CDB stock is currently priced at $80. The company will pay a dividend of $4.57 next year and investors require a return of 10.8 percent on similar stocks. What is the dividend growth rate on this stock
Answer:
The answer is 5.09%
Explanation:
The model used in this question is the Dividend Discount Model and it is one of the methods used in determining the price of stock. Here, the price of stock had already been determined. We are looking for one of the variables (growth rate) used in determining the price.
The formula for determining price of stock is:
Po = D1/r - g
Where Po is the price of stock
D1 is the dividend for next year
r is the rate of return
g is the dividend growth rate
$80 = $4.57/0.108 - g
Cross multiply:
8.64 - 80g = 4.57
80g = 8.64 - 4.57
80g = 4.07
g = 4.07/80
g =0.05088
g = 5.09%
Ideally, you should develop a risk management plan for a specific project because _________
A. Engaging in planning activities demonstrates professionalism
B. Your boss is committed to using project management techniques in every project
C. The scale of a particular project â the size and complexity â require it
D. The Project Management Institute recommends it
Answer: Option B
Explanation:
A risk management plan is a document which is prepared by the project manager to eliminate the risks and chances of any loss or issues related to the project.
Every project has to follow the risk management plan to ensure the safety of the people and capital invested in the project.
It is also contained in the documents of the risk assessment plan which has to be followed by project manager and people.
It is decided during the baseline, the risks and the cures related to the project. As the boss and the project manger is committed to follow the risk management techniques it should be considered on a priority basis.
Identify each person below as structurally, frictionally, or cyclically unemployed.
a. Jake recently lost his job as a dishwasher. Minimum-wage legislation keeps employers from adding more of the low-skill positions for which he qualifies, so he has been unable to find work.
b. Rosa is a real estate agent. House sales in her area have declined because the region has been going through a recession. She has no clients and is currently looking for a new full-time job.
c. Latasha just graduated from college and is looking for a full-time position with an investment banking firm.
Answer and Explanation:
Structurally unemployed: It refers to mismatch between both the available jobs and the unemployed skills
Frictionally unemployed: This condition occurs when the workers or labors are not employed and looking for the work
Cyclically unemployed: It arise when where the aggregate demand for goods and services can not encourage full employment in an economy. This takes place during times of sluggish economic growth or times of economic contraction
Based on the explanation, the classification is as follows
a. Structurally unemployed
b. Cyclic unemployed
c. Frictionally unemployed
You are offered the right to receive $1000 per year forever, starting in one year. If your discount rate is 5%, what is this offer worth to you
Answer:
Worth of the offer =$20,000
Explanation:
The worth of this offer is the present value of the annual cash inflow receivable forever discounted at the given interest rate. The cash inflow receivable forever is known as a perpetuity
The present of a cash inflow receivable forever is given below:
PV = A× 1/r
A- annual cash inflow, r- discount rate, PV - Present value of a perpetuity
A- 1,000, r- 5%
PV = 1,000 × 1/0.05
PV = $20,000
Worth of the offer =$20,000
Huprey Co. is the defendant in the following legal claims. For each of following claims, does Humphrey (a) record a liability, (b) disclose in notes, or (c) have no disclosure. 1. Humphrey can reasonably estimate that a pending lawsuit will result in damages of $1,280,000it is probable that Huprey will lose the case. Have no disclosure. Disclose in notes. Record a liability. 2. It is reasonably possible that Huprey will lose a pending lawsuit. The loss cannot be estimable. Record a liability. Disclose in notes. Have no disclosure. 3. Huprey is being sued for damages of $2,400,000. It is very unlikely (remote) that Huprey will lose the case. Disclose in notes. Record a liability. Have no disclosure.
Answer:
1. Record a liability.
2. Disclose in notes.
3. Disclose in notes.
Explanation:
The issue here relates to a Contingent Liability which is a provision that is recorded in the books as a liability if there is a likelihood that the firm will incur it in future. This is usually done for law suits.
The general rule is: Record a liability if the loss is probable and estimable.
If a loss is not probable, disclose it in the notes.
If a loss is not estimable, disclose it in the notes.
1. Loss is both estimable and it is probable that Humphrey will lose the case. It should be recorded as a liability.
2. It is probable that Humphrey will lose the case however, loss is not estimable. Disclose in the notes.
3. It is not probable that Humphrey will lose the case. Disclose in the notes.
Given the following data for Glennon Company, compute (A) total manufacturing costs and (B) costs of goods manufactured:
A B
Direct materials used $270,000 Beginning work in process $40,000
Direct labor 200,000 Ending work in process 20,000
Manufacturing overhead 300,000 Beginning finished goods 50,000
Operating expenses 350,000 Ending finished goods 30,000
A) $750,000 $790,000
B) $770,000 $750,000
C) $790,000 $810,000
D) $770,000 $790,000
2) Carr Company is considering two capital investment proposals. Estimates regarding each project are provided below:
Project Soup Project Nuts
Initial investment $400,000 $600,000
Annual net income 30,000 46,000
Net annual cash inflow 110,000 146,000
Estimated useful life 5 years 6 years
Salvage value -0- -0-
The company requires a 10% rate of return on all new investments.
Present Value of an Annuity of 1
Periods 9% 10% 11% 12%
5 3.890 3.791 3.696 3.605
6 4.486 4.355 4.231 4.111
The annual rate of return for Project Soup is:
A) 55%.
B) 7.5%.
C) 27.5%.
D) 15.0%.
Answer:
1. Glennon Company
Total manufacturing costs and costs of goods sold:
C) $790,000 $810,000
2. Carr Company
Annual Rate of Return for Project Soup:
B) 7.5%.
Explanation:
1A) Total Manufacturing costs
Direct materials used $270,000
Beginning work in process 40,000
Direct labor 200,000
Ending work in process (20,000 )
Manufacturing overhead 300,000
Total manufacturing costs $790,000
1B) Costs of goods sold:
Beginning finished goods 50,000
Costs of goods manufactured 790,000
less Ending finished goods (30,000)
Cost of goods sold $810,000
2) Project Soup Project Nuts
Initial investment $400,000 $600,000
Annual net income 30,000 46,000
Net annual cash inflow 110,000 146,000
Annual Rate of Return = Annual net income/Initial Investment
= $30,000/$400,000 x 100 = 7.5%
Helen worked for ABC Motors for 25 years. The president of ABC said to her: "In consideration of your past service for 25 years, I promise to give you a new car next week." However, he did not give the car. Is this promise legally enforceable
Answer:
No, legal consideration is absent
Explanation:
According to the given situation, the President of ABC company was promised to Helen to give a new car next week as Helen worked for 25 years. But the president did not give the car as he promised to the Helen.
In this case, there was a promise which was verbal, not in the way of legal consideration, which means there is no proof so that Helen can claim from the president.
Therefore the correct answer is No, legal consideration is absent
Costs that remain constant in total dollar amount as the level of activity changes are called Group of answer choices
Answer: Fixed Costs
Explanation:
1. Characteristics of oligopoly An oligopolistic market structure is distinguished by several characteristics, one of which is market control by a few large firms. Which of the following are other characteristics of this market structure? Check all that apply. Either similar or identical products Difficult entry Neither mutual interdependence nor mutual dependence No entry Mutual interdependence
Answer:
----Either similar or identical products --------Difficult entry
----Mutual interdependence
Explanation: An Oligopolistic market is a market characterized by few sellers of large firms who sell either similar or differentiated products. Here, Each firm is mutually interdependent as any action from any firms influences the actions of the rest of the competing firms , therefore decisions are made using strategic planning and consideration as competing firms are ready to counter react to any change in any new market action.
Market entry is difficult Because of the already established customer base of the successful operating firms dominating the market.Also venturing into the market requires high capital, technology or additional government licences. Examples of Oligopolistic firms are oil and gas firms, airlines, mass media etc
Market entry is difficult Because of the already established customer base of the successful operating firms dominating the market.
Also venturing into the market requires high capital, technology, or additional government licenses.
The correct options are:
Either similar or identical productsDifficult entry Mutual interdependence
An Oligopolistic market is a market characterized by few sellers of large firms who sell either similar or differentiated products. Each firm is mutually interdependent as any action from any firm influences the actions of the rest of the competing firms.
Therefore decisions are made using strategic planning and consideration as competing firms are ready to counter-react to any change in any new market action.
To know more about the Characteristics of oligopoly, refer to the link below:
https://brainly.com/question/13023410
Specter Co. has identified an investment project with the following cash flows. Year Cash Flow 1 $ 820 2 1,130 3 1,390 4 1,525 a. If the discount rate is 10 percent, what is the present value of these cash flows
Answer:
$3,765.26
Explanation:
Present value is the sum of discounted cash flows.
Present value can be calculated using a financial calculator
Cash Flow in year 1 = $ 820
Cash Flow in year 2 = 1,130
Cash Flow in year 3 = 1,390
Cash Flow in year 4 = 1,525
I = 10
PV = $3,765.26
To find the PV using a financial calacutor:
1. Input the cash flow values by pressing the CF button. After inputting the value, press enter and the arrow facing a downward direction.
2. After inputting all the cash flows, press the NPV button, input the value for I, press enter and the arrow facing a downward direction.
3. Press compute
I hope my answer helps you
It's important to note that sometimes private solutions to externalities do not work. For example, this occurs when an excessive amount of time or money must be spent for parties to reach an agreement. This describes the problem of .
In the case when an excessive amount should be spending so this represents the problem of the Transaction cost.
What does a transaction cost?
Transaction cost is the cost that is typically in money or time format. It is the cost involved in the context of time or money when a decision is made or an agreement has been reached.
So according to the given situation, there is an excessive amount of time or money spent on parties so that it could be reached to an agreement
Therefore it represents the transaction cost.
Learn more about cost here: https://brainly.com/question/24468619