Answer:
a
Explanation:
In your own words, discuss the payback period, NPV (net present value), and IRR (internal rate of return) methods for capital budgeting analysis. What result does each method provide the user? What are the limitations of each of these methods? Which method would you find most useful in making the best investment decisions for your business and why?
Answer:
The net present value (NPV) is the most important and useful method of capital budgeting analysis. It is basically calculated by determining the present value of all the future cash flows generated by a project and then subtract the original investment cost. If the answer is positive (positive NPV) then the project should be profitable and the company should go ahead with it. The limitation of NPV results from the discount rate used to calculate the present value, since it is extremely important to use the proper discount rate and not one that is too low or too high.
The second most useful tool is the internal rate of return (IRR) which is very related to the NPV. The IRR shows us basically at what discount rate the NPV would equal 0. Generally if the IRR is higher than the discount rate the NPV should be positive.
The payback period shows us how much time it takes a project to recover the original amount of money invested in it. The payback period is only useful for some industries where early obsolescence might be a problem. E.g. technological firms only approve projects with very short payback periods because their products might be obsolete in just one or two years.
The Fed has decided to expand the money supply, leading to lower interest rates. As a partner in a tech start-up, you react to these lower interest rates by deciding to expand your operations and begin marketing your new artificial intelligence prototype. What impacts would this decision have on the macroeconomy
Answer:
reducing unemployment and raising GDP and increasing the investment part of GDP
Explanation:
This is the expansion monetary policy. Hiring more people results in business expansion, which reduces unemployment. In addition, more goods and services will be available that will increase GDP as a result of trade expansion. Finally, as business investment increases, so does the share of investment in GDP.correct answer is reducing unemployment and raising GDP and increasing the investment part of GDPBrodrick Company expects to produce 20,000 units for the year ending December 31. A flexible budget for 20,000 units of production reflects sales of $400,000; variable costs of $80,000; and fixed costs of $150,000. If the company instead produces and sells 26,000 units for the year, calculate the expected level of income from operations.
Answer:
For 20,000 units, we have 170,000
For 26,000 units, we have 266,000
Explanation:
Here, we are to calculate the expected level of income from operations.
Formulas that can come in handy from the table are;
Variable amount per unit = sales/number of units
contribution margin = Sales - Variable cost
Income from operations = Contribution margin - fixed cost
Please, kindly checked attached image for tabulated result calculations.
which of the following is the features of memorandum. (a) no salutation (b) dear ma/sir (c) it contains letter headed paper (d) it contains e-mail
Answer:
(c) it contains letter headed paper
Explanation:
A memorandum can be referred to as it's short form called a Memo. A memorandum is an official means of communicating internally with the staff or employees of an organization about the day to day running or operations of such an organization.
Features of a Memorandum ( Memo) includes:
a) It is always typed or written on the company's letter headed paper.
b) It includes the person or persons who the memo is been addressed to
c) It includes the name and signature of person writing the memo.
d) Subject or title of the memo.
e) Information about the subject of the memo.
A company purchased $1,800 of merchandise on July 5 with terms 2/10, n/30. On July 7, it returned $200 worth of merchandise. On July 12, it paid the full amount due. Assuming the company uses a perpetual inventory system, and records purchases using the gross method, the correct journal entry to record the payment on July 12 is:
Answer:
The correct journal entry to record the payment on July 12 is:
Accounts Payable $1,600(debit)
Discount Received $32 (credit)
Cash $1,568 (credit)
Explanation:
When Company Purchases Merchandise
Merchandise Inventory $1,800 (debit)
Accounts Payable $1,800 (credit)
When Company Returns some Merchandise
Accounts Payable $200 (debit)
Merchandise Inventory $200 (credit)
When Company pay for the Inventory on 12 July
Note : Payment is made within the Cash discount period and it is eligible for the 2% Cash Discount.
Accounts Payable $1,600(debit)
Discount Received $32 (credit)
Cash $1,568 (credit)
The correct journal entry to record the payment on July 12 is:
Accounts Payable (debit) - $1,600
Discount Received (credit) - $32
Cash (credit) - $1,568
A journal entry is the process of recording any transaction, whether it is commercial or not. An accounting diary that displays the debit, as well as credit balances of a corporation, lists transactions.
The journal entry will be:
1. Merchandise Inventory (debit) - $1,800
Accounts Payable (credit) - $1,800
2. Accounts Payable (debit )- $200
Merchandise Inventory (credit) - $200
3. Accounts Payable (debit)- $1,600
Discount Received (credit) - $32
Cash (credit)- $1,568
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Blissful Blankets' target profit is $520,000. Each blanket has a contribution margin of $21. Fixed costs are $320,000. The number of blankets Blissful Blankets need to sell in order to achieve its target profit is
Answer:
40,000 blankets
Explanation:
Number of blankets that needed to be sold to achieve a desired profit = Fixed costs + Targeted profit / Contribution margin
= ($320,000 + $520,000) / $21
= 40,000 blankets
Write any two features of RTGS.
Features of RTGS Transaction
Realtime online fund transfer.
Used for high value transactions.
Safe and secure.
Reliable and backed by RBI.
Immediate clearing.
Funds credited on a one-on-one basis.
Transactions executed on an individual and gross basis.
You are the General Manager of a regional chemical company. In the course of producing your bulk chemicals, large amount of particles and smoke are emitted through your plant's smokestack. The level of pollutants is well below current EPA regulations, and you are violating no laws, but neighborhood groups are complaining about minor health problems caused by the smoke. After investigating numerous alternatives, you find the most effective solution would be to install a "scubber" system which will remove 90% of the pollutants and ash. The cost of the "scrubber" system is $10 milion and your company's annual profits are $2 million. Who are you company's stakholders to consider in this scenario and would you install it?
Answer:
The answer is explained below
Explanation:
The companies board of directors as well as you would consider whether it is best to install the scubber system. When determining whether to install the scubber system both short and long term consequences are to be considered. If presently, the level of pollution is legal, you need to consider if in the future it would be legal? if the installation of the scubber system would affect the public relations of the company. After considering all this, it would be better to install because the pollution can lead to death, and the neighborhood can sue the company. Also the EPA regulations can be regulated.
Who may pay for the services of alcoholic beverage in a private club
Answer:
Members Only
Explanation:
Felicia is very warm and accepting to both of her two children, but she also sets firm rules that the children must follow with very few exceptions. The characteristics that best describe her are:
Answer:
Responsive and demanding
Explanation:
according to Baumrind, there are four parenting styles :
Authoritative
authoritarian
permissive
Neglectful
Parenting behaviour are divided into two dimensions :
demandingness - when a parent controls their child's actions
Responsiveness - refers to the extent to which the parent accepts and recognises their child's needs
Claremont Company specializes in selling refurbished copiers. During the month, the company sold 180 copiers at an average price of $3,000 each. The budget for the month was to sell 175 copiers at an average price of $3,200. The expected total sales for 180 copiers were.
Answer:
$576,000
Explanation:
Since the company sold 180 copiers, each at $3,000
175 budgeted for the month was sold at $3,200
Therefore, we sum the above
$3,000 + $3,200
=$6,200
Also, multiply the above outcome with the actual copiers sold
$6,200× 180
=$1,116,000
Therefore; to get the expected total sales for 180 copiers;
$3,000 × 180
=$540,000
Then
=$1,116,000- $540,000
=$576,000
Nick won $1000 lottery prize He can't decide what he should spend the money con buy a console, a bike ,a watch or a trip . He gives up the bike and the watch but he rally wants the console. In the end he saves it all for the trip. Which item is the opportunity cost of Nick's trip?
Answer: Console
Explanation:
Opportunity cost is what one forgoes in order to get somethings else. Opportunity cost is as a result of limited resources hence a choice has to be made.
From thw question, we are told that
Nick won $1000 lottery prize and he can't decide what he should spend the money on buy as he wanted a console, a bike ,a watch or go on a trip. We are further told that he gives up the bike and the watch but he really wants the console and that in the end he saves it all for the trip.
The opportunity cost here is the console. He wasn't really interested in the bike or watch but he really as very interested in the console and he eventually gave up on the console for the trip.
Generally speaking, personal selling often works better than other forms of promotion if Select one: a. the complexity of the product increases. b. the value of the product decreases. c. the number of potential customers increases. d. the role of social media increases.
Answer:
a. the complexity of the product increases.
Explanation:
Generally speaking, personal selling often works better than other forms of promotion if the complexity of the product increases.
Personal selling can be defined as a promotional process in which a sales person engages a customer and tries to convince him or her to buy a product. The process involves a face-to-face interaction or communication and as such it is also referred to as the face-to-face selling.
Basically, it is a purchase situation involving a face-to-face interaction between the sales person and the customers, in an attempt to sell a product to them.
Also, note that if the complexity of the product increases, the most effective, efficient and best form of promotion would be personal selling because the sales person will have to explain and demonstrate to the potential customers how to use the product.
Hence, products that are technically complex or have complex features such as mobile phones, office equipments, factory equipment, cars are usually sold using the personal selling method. Any organization or business entity using the personal selling method must ensure their sales personnel have good interpersonal skills, ability, outspoken and very friendly with people.
Tanning Company analyzes its receivables to estimate bad debt expense. The accounts receivable balance is $390,000 and credit sales are $1,300,000. An aging of accounts receivable shows that approximately 5% of the outstanding receivables will be uncollectible. What adjusting entry will Tanning Company make if Allowance for Doubtful Accounts has a credit balance of $2,500 before adjustment? a. Bad Debt Expense65,000 Allowance for Doubtful Accounts65,000 b. Bad Debt Expense19,500 Allowance for Doubtful Accounts19,500 c. Bad Debt Expense22,000 Allowance for Doubtful Accounts22,000 d. Bad Debt Expense17,000 Allowance for Doubtful Accounts17,000
Answer:
d. Debit Credit
Bad Debt Expense $17,000
Allowance For Doubtful Accounts $17,000
Explanation:
Estimates of uncollectible ( $390,000× 5%) = $19,500
Less: Allowance For Doubtful Accounts Credit= ($2500)
Bad Debt Expense= $17,000
Dag runs a hardware store. He learned that customers process the price of $9.99 as significantly lower than the price of $10.00 because of the reduced digit count in the price point. Accordingly, he follows this rule to set up the prices for all products. Dag uses a ________ strategy.
Answer: Psychological pricing
Explanation: The psychological pricing policy refers to a pricing strategy which could be said to have given rise to the use of price points whereby price of products are not perfectly rounded to rational whole numbers such example is when a product which cost $10.00 as in the scenario above is instead attached a price of $9.99. These imperfectly rounded numbers tend to have a greater psychological effect on buyers than perfectly rounded figures as buyers seem to portray these numbers as being lower than they are in actual sense.
duties of an office clerk
Answer:
what do you need to know
Dave and Ellen are newly married and living in their first house. The yearly premium on their homeowner's insurance policy is $450 for the coverage they need. Their insurance company offers a 5 percent discount if they install dead-bolt locks on all exterior doors. The couple can also receive a 2 percent discount if they install smoke detectors on each floor. They have contacted a locksmith, who will provide and install dead-bolt locks on the two exterior doors for $50 each. At the local hardware store, smoke detectors cost $7 each, and the new house has two floors. Dave and Ellen can install them themselves.
a. How many years will it take Dave and Ellen to earn back in discounts the cost of the dead-bolts?
b. How many years will it take Dave and Ellen to earn back in discounts the cost of the smoke detectors?
c.Would you recommend Dave and Ellen invest in the safety items, if they plan to stay in that house for about 5 years?
Answer:
1.Annual discount for dead-bolts $22.50
Recovery period 4.44 years
2.Annual discount for smoke alarms $9.00
Recovery period 1.5 years
3. Yes
Explanation:
1. Calculation for the years it will take Dave and Ellen to earn back the cost of the dead-bolts
a. We were going to calculate for the Annual discount for dead-bolts using this formula Annual discount for dead bolts =Discount percent × Annual premium
Let plug in the formula
Annual discount for dead-bolts =0.05 × $450
Annual discount for dead-bolts =$22.50
b. We are to find Recovery period using this formula Recovery period=Cost of dead bolts / Annual discount for dead-bolts
Let plug in the formula
Recovery period= (2 × $50) / $22.50
Recovery period=100/$22.50
Recovery period= 4.44years
2. Calculation for the years it will take Dave and Ellen to earn back the cost of the smoke detectors
a. We are going to calculate for the Annual discount for smoke alarms using this formula Annual discount for smoke alarms =Discount percent × Annual premium
Let plug in the formula
Annual discount for smoke alarms =0.02 × $450
Annual discount for smoke alarms =$9.00
b. We are going to find the Recovery period using this formula Recovery period=Cost of smoke alarms / Annual discount for smoke alarms
Let plug in the formula
Recovery period=(2 × $7) / $9.00
Recovery period=14/$9.00
Recovery period= 1.5 years
3. Yes I Would recommend both Dave and Ellen to invest in the safety items, if they plan to stay in that house for about 5 years as they should recover most of their costs within the planned tenancy of the house and for their personal safety they should install the items regardless of all the recovery time period.
In a monopolistically competitive market, a. the entry of new firms creates externalities. b. the absence of restrictions on entry by new firms ensures that there will be no deadweight loss. c. there are always too many firms in the market relative to the socially-optimal number of firms.
Better choose A variant
mark, a civil engineer, entered into a contract with david. as per the contract, mark agreed to design and build a house for david for a specified fee. mark provided david with an estimation of the total cost and the contract was mutually agreed upon. however, during construction, when mark increased the price due to a miscalculation on his part, david refused to pay the amount. this scenario is an example of a _____ mistake.
Answer:
Unilateral Mistake
Explanation:
In a contract between two parties, a unilateral mistake occurs when one party in the contract makes a mistake regarding cost, the definition of a term or word, or measurement. The outcome of such a mistake is usually a conflict between the two parties. To resolve this problem, the contract could be canceled (if the other party becomes aware of the mistake), or reformed (if only one party is aware of the mistake).
When Mark made a mistake about the cost of building the house for David, he made a unilateral mistake as the mistake was committed by him alone. David's refusal of the amended cost is resulting in a conflict that would likely lead to the cancellation of the contract.
A company pays an employee $3,000 for a five-day work week, monday–friday. the adjusting entry on december 31, which is a wednesday, is a debit to wages expense, $1,800, and a credit to wages payable, $1,800. true
Answer: True
Explanation:
From the question, we are told that a company pays an employee $3,000 for a five-day work week from Monday to Friday. This means that the employee receives a daily payment of ($3,000/5) = $600.
On Wednesday which is the third day, he will be paid ($600 × 3) = $1800. Therefore , the adjusting entry on December 31, which falls on a Wednesday will be to debit the wages expense, $1,800, and then credit to wages payable of $1,800.
Raggs, Ltd. a clothing firm, determines that in order to sell x suits, the price per suit must be p=120 - 0.5 x. It also determines that the total cost of producing x suits is given by C (x)=2500 + 0.25 x ^2. a) Find the total revenue, R (x). b) Find the total profit, P (x). c) How many suits must the company produce and sell in order to maximize profit? d) What is the maximum profit? e) What price per suit must be charged in order to maximize profit?
Answer:
A) R(x) = 120x - 0.5x^2
B) P(x) = - 0.75x^2 + 120x - 2500
C) 80
D) 2300
E) 80
Explanation:
Given the following :
Price of suit 'x' :
p = 120 - 0.5x
Cost of producing 'x' suits :
C(x)=2500 + 0.25 x^2
A) calculate total revenue 'R(x)'
Total Revenue = price × total quantity sold, If total quantity sold = 'x'
R(x) = (120 - 0.5x) * x
R(x) = 120x - 0.5x^2
B) Total profit, 'p(x)'
Profit = Total revenue - Cost of production
P(x) = R(x) - C(x)
P(x) = (120x - 0.5x^2) - (2500 + 0.25x^2)
P(x) = 120x - 0.5x^2 - 2500 - 0.25x^2
P(x) = - 0.5x^2 - 0.25x^2 + 120x - 2500
P(x) = - 0.75x^2 + 120x - 2500
C) To maximize profit
Find the marginal profit 'p' (x)'
First derivative of p(x)
d/dx (p(x)) = - 2(0.75)x + 120
P'(x) = - 1.5x + 120
-1.5x + 120 = 0
-1.5x = - 120
x = 120 / 1.5
x = 80
D) maximum profit
P(x) = - 0.75x^2 + 120x - 2500
P(80) = - 0.75(80)^2 + 120(80) - 2500
= -0.75(6400) + 9600 - 2500
= -4800 + 9600 - 2500
= 2300
E) price per suit in other to maximize profit
P = 120 - 0.5x
P = 120 - 0.5(80)
P = 120 - 40
P = $80
Page 576 14.3. Recent Changes in Capitalism This animation explores different reasons why people work long hours even when their professional or financial situation would enable them to dial back. A key concept in this context is that of the opportunity cost of leisure. How is this concept best explained
Answer:
The summary including its perceived task is demonstrated in the following segment on the interpretation.
Explanation:
The further you pay, then you pass up to make a change from generating income. This would be called opportunity cost since taking a short break is losing the chance to go somewhere else (i.e. gain further extra cash).This is much less the continuation of something like a withheld opportunity than that of the recovery on the alternative you picked.Suppose the countries of Iceland and Norway set up a free trade area, eliminating all trade barriers between themselves but maintaining tariffs on imports from the rest of the world. Now, Iceland begins to import wool from Norway. However, Iceland had previously been importing wool from England, which produced wool more cheaply than both Iceland and Norway. What is this an example of
Answer:
Trade Bloc
Explanation:
Trade Bloc is a type of agreement between two sovereign nations in which barriers to trade are either reduced or totally eliminated between the two nations. This type of agreement can either be one agreement between several nations or a part of a regional organization.
So, the example of Iceland and Norway is an example of a trade bloc.
Which best describes a way people can use personal loans? to buy a house to buy a bicycle to pay for college to pay for groceries
Answer:
c. to pay for college
Explanation:
just took the test
Answer:
C. to pay for college
Explanation:
Suppose a monopoly firm produces bicycles and can sell 10 bicycles per month at a price of $700 per bicycle. In order to increase sales by one bicycle per month, the monopolist must lower the price of its bicycles by $50 to $650 per bicycle. The marginal revenue of the 11th bicycle is
Answer:
$150
Explanation:
A monopoly is when there's only one firm operating in an industry
Marginal revenue is the change in revenue when one extra unit of a product is sold.
=( $700 × 10) - (650 × 11) = $150
A firm is issuing new debt to finance some capital investment project. The firm will issue 20,000 new $1,000 face-value bonds that will mature in 20 years. The bonds have a coupon rate of 8% and are currently priced at par. The flotation costs that are associated with this new bond issue are expected to be $10 per bond. Further, the company has a marginal tax rate of 34%. Given this information, the before-tax cost of debt is _______________.
Answer:
8.09%
Explanation:
the coupon paid by each bond = $1,000 x 8% = $80
the net amount of money received from each bond = $990
n = 20
now we must find the yield to maturity:
YTM = {coupon + [(face value - market value)/n]} / [(face value + market value)/2]
YTM = {$80 + [($1,000 - $990)/20]} / [($1,000 + $990)/2] = $80.50 / $995 = 0.0809 = 8.09%
In her research paper, Kirstein copied a few paragraphs from a renowned author's work verbatim without placing them within quotation marks or citing the source. The review board rejected her paper on grounds of plagiarism. In this scenario, Kirstein has committed:_________.
Answer:
Word-for-word.
Explanation:
Word for word plagiarism is seen to be an unethical form of writing where the said student or researcher is seen to copy a fellow researchers works verbatim and particularly word for word with also quotation marks too. In as much as this is a bad form for writers, people are always seen to commit themselves in still doing it. This can cause a lawsuit in some places depending on the researcher whose work is been stolen/copied.
In all, it is been tagged an act of intellectual dishonesty which comes with uneasy consequences when it is done to a wrong person; a plagiarized assignment may lead to a failing grade, a suspension, or an expulsion.
You are the owner of a local Honda dealership. Unlike other dealerships in the area, you take pride in your "No Haggle" sales policy. Last year, your dealership earned record profits of $1.5 million. However, according to the local Chamber of Commerce, your earnings were 10 percent less than either of your competitors. In your market, the price elasticity of demand for midsized Honda automobiles is 4.5. In each of the last five years, your dealership has sold more midsized automobiles than any other Honda dealership in the nation. This entitled your dealership to an additional 30 percent off the manufacturer’s suggested retail price (MSRP) in each year. Taking this into account, your marginal cost of a midsized automobile is $11,000. What price should you charge for a midsized automobile if you expect to maintain your record sales?
Answer:
$11880
Explanation:
Given that:
In a local Honda Dealership;
Last year, your dealership earned a record profits of $1.5 million
according to the local Chamber of Commerce, your earnings were 10 percent less than either of your competitors.
The Price Elasticity of demand E = - 4.5
Marginal cost of a midsized automobile = $11,000
Let assume that In your market, you compete against two other dealers
From The above given data , the objective is to determine the What price should you charge for a midsized automobile if you expect to maintain your record sales.
So; in order to achieve that ; we consider the scenario of an Oligopoly market by using the markup formula for homogeneous product Cournot Oligopoly which can be represented as:
[tex]P = (\dfrac{n*E}{1+ n*E})*MC[/tex]
[tex]P = (\dfrac{3*(-4.5)}{1+(3*-4.5)})*11000[/tex]
[tex]P = (\dfrac{-13.5}{1+(-13.5)})*11000[/tex]
[tex]P = (\dfrac{-13.5}{-12.5})*11000[/tex]
P = 1.08 × 11000
P = $11880
Hence. the price you should charge for a midsized automobile if you expect to maintain your record sales is $11880
Assume that you work for a company that produces different types of flavored salty snacks for many different target markets (for example, flavored potato chips or flavored sunflower seeds). One part of your job is to explore regularly what flavors your potential customers might like. Taste preferences constantly change, and you may not always be aware of all the flavors people crave. With the above research objective in mind, which type of research would you most likely conduct on a regular basis
Answer:
Focus group
Explanation:
The focus group refers to the people who are involved in a group to discuss about the topic that is related to the research of the market or the analysis of something or discussing for the new product.
It is an open discussion so that everyone who is in a group put their ideas and analyzed it what reactions would be received from an entire population
Since in the question, the taste and preferences changes constantly and the problem is that you are not aware of the flavours what actually people want so it should be discussed in a group so that proper analysis could be made by considering everyone perceptions
Therefore this research represent the focus group
How does the ability to discriminate correctly affect his or her earnings? A. If the negotiated price is higher than the reservation price, a sale is lost, and if the negotiated price is lower than the reservation price, some profit is lost. B. If the negotiated price is higher than the reservation price, some profit is lost, and if the negotiated price is lower than the reservation price, a sale is lost. C. If the reservation price is higher or lower than the reservation price, revenue is gained. D. If the reservation price is higher or lower than the reservation price, a sale is lost. E. If the negotiated price equals the reservation price, profit equals zero.
Answer:
if the negotiated price equals the reservation price profit is zero