We'll use the Rate of Return (ROR) evaluation method, considering an 8-year life and a Minimum Acceptable Rate of Return (MARR) of 11% per year.
Here are the investment costs and incomes for each method:
Method 1:
Investment cost: $170,000
Annual income: $30,000
Method 2:
Investment cost: $210,000
Annual income: $40,000
Method 3:
Investment cost: $220,000
Annual income: $50,000
Method 4:
Investment cost: $250,000
Annual income: $70,000
(a) If the methods are independent, we can evaluate each method separately and accept any method that yields a rate of return greater than or equal to the MARR.
To calculate the ROR for each method, we'll use the following formula:
ROR = (Annual Income - Investment Cost) / Investment Cost
ROR for Method 1 = ($30,000 - $170,000) / $170,000 ≈ -0.8235 (Negative rate of return)
ROR for Method 2 = ($40,000 - $210,000) / $210,000 ≈ -0.8095 (Negative rate of return)
ROR for Method 3 = ($50,000 - $220,000) / $220,000 ≈ -0.7727 (Negative rate of return)
ROR for Method 4 = ($70,000 - $250,000) / $250,000 ≈ -0.7200 (Negative rate of return)
Since all the methods have negative rates of return, none of them would be considered acceptable when evaluated independently.
(b) If the methods are mutually exclusive, meaning only one method can be selected, we need to compare the methods to find the one with the highest ROR. The method with the highest ROR greater than or equal to the MARR would be the preferred choice.
Comparing the RORs of the methods:
Method 1: -0.8235
Method 2: -0.8095
Method 3: -0.7727
Method 4: -0.7200
Since all the RORs are negative, none of the methods meet the minimum acceptable rate of return. In this case, it would be more suitable to consider alternative options or evaluate other factors before making a decision.
It's worth noting that the negative rates of return indicate that the investment costs are higher than the expected incomes, resulting in a negative return on investment.
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Suppose you are in charge of a bank, which is considering making a short-term loan to a private equity fund so that it can buy a company. This loan would involve you giving the private equity fund L dollars today. The fund would then need to repay (1 + r) x L dollars next year. If they choose not to deliver this payment, then you get the value of the company. The company is currently worth $92. 5m. Next year, the company will be worth either $100m (up state) or $80m (down state). The prevailing riskless rate is 2%.
d) Suppose the private equity fund asks for a $82. 5m loan. What is the fair interest rate on this loan? (Answer in percent)
e) Suppose the private equity fund asks for a $82. 5m loan. What is the total payment that the private equity fund needs to make to you next year (interest + principle) in order to avoid default? (Answer in millions of dollars)
f) Suppose the private equity fund asks for a $82. 5m loan. How much money does the private equity fund save by defaulting on this loan in the down state next year? (Answer in millions of dollars)
g) Suppose the private equity fund asks for a $82. 5m loan. What is the present value of the default option associated with this loan? (Answer in millions of dollars)
The fair interest rate on the $82.5m loan is 9.81%, the total payment needed to avoid default is $90.6m, the savings from defaulting in the down state is $10.6m, and the present value of the default option is $5.7m.
d) To determine the fair interest rate on the $82.5m loan, we need to calculate the expected value of the loan repayment next year. The expected value is calculated as the probability-weighted average of the repayment amounts in the upstate and the downstate. The expected repayment is (0.5 x $100m x 1.02) + (0.5 x $80m x 1.02) = $90.6m. Therefore, the fair interest rate is ((1 + r) x L - L) / L = ($90.6m - $82.5m) / $82.5m = 9.81%.
e) The total payment that the private equity fund needs to make to you next year in order to avoid default is (1 + r) x L = (1 + 0.0981) x $82.5m = $90.6m.
f) If the private equity fund defaults on the loan in the down state, then the bank gets the value of the company, which is $80m. Therefore, the amount that the private equity fund saves by defaulting is $90.6m - $80m = $10.6m.
g) The default option associated with the loan represents the value of the company if the private equity fund defaults on the loan. To calculate the present value of the default option, we need to discount the expected value of the company next year by the riskless rate. The expected value of the company next year is (0.5 x $100m) + (0.5 x $80m) = $90m. The present value of the default option is $90m / (1 + 0.02) = $88.2m. Therefore, the present value of the default option associated with the loan is $88.2m - $82.5m = $5.7m.
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firms in a small economy planned that inventories would grow over the past year by $500,000. over that year, inventories did grow by exactly $500,000. this implies that
Given the situation described in the question, this implies that the firm's "aggregate expenditure that year equal to the GDP that year."
This is evident in the fact that the expected or estimated inventories sum equals the actual inventories sum.
Note business or firm's inventories are included when measuring the GDP.
This is because the unsold inventories of firms which is resulted from the firms producing more than they sell, increases GDP. While when firms sell Inventories more than they produce, it leads to a reduction in GDP.
Hence, in this case, it is concluded that the correct answer to the question is "aggregate expenditure that year equal to the GDP that year."
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What do interior designers use CAD to do? Select one task that an interior designer could use CAD for and compare it to how that task could have been done prior to the invention of CAD.
The majority of designers will utilize AutoCAD to produce floor plans and room mockups for both commercial and residential structures.
The majority will begin with a 2D layout as they collaborate with a customer to plan the overall positioning of important furniture or fixtures. The ability to transform 2D floor plans to 3D with the Room Builder feature is one of the best aspects of software like AutoCAD 2010 for interior designers and space planning, making it simple to show clients exactly how their finished room will look. Although not the only tool used by interior designers for planning, AutoCAD is unquestionably the industry standard. Do you want to know how much money you can make working with interior designers in AutoCAD? The extent of your abilities will determine that, but being able to create striking room designs within the programme will undoubtedly help you to stand out.
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Which of the following statements is true?
A. Rapid growth spurs increases in market share and profits and thus, is always a blessing.
B. Firms that grow rapidly only very rarely encounter financial problems.
C. The cash flows generated in a given time period are equal to the profits reported.
D. Profits provide assurance that cash flow will be sufficient to maintain solvency.
E. Due to required cash investments in current assets, fast-growing and profitable companies can literally "grow broke".
F. None of the above.
The statement that is true among the given options is E. Due to required cash investments in current assets, fast-growing and profitable companies can literally "grow broke."
While rapid growth can bring benefits such as increased market share and profits (option A), it can also create challenges for companies. Fast-growing firms often need to invest heavily in current assets, such as inventory and accounts receivable, to support their expansion. These investments require cash outflows, which can strain the company's liquidity and potentially lead to cash flow problems.
Option B, stating that firms that grow rapidly only very rarely encounter financial problems, is not necessarily true. Rapid growth can put a strain on a company's financial resources, and if not managed properly, it can lead to financial challenges.
Option C, stating that cash flows generated in a given time period are equal to the profits reported, is not always true. Cash flows and profits can differ due to non-cash expenses, timing differences, and other factors.
Option D, stating that profits provide assurance that cash flow will be sufficient to maintain solvency, is not necessarily true. Profits do not guarantee sufficient cash flow, as cash flow depends on various factors such as working capital management, capital expenditures, and debt service obligations.
Therefore, the most accurate statement among the given options is E. Due to required cash investments in current assets, fast-growing and profitable companies can literally "grow broke."
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Now it's your turn. What do these examples inspire you to think about in terms of your own purpose?
How can you use your digital footprint to make a positive impact on the world? To begin answering
these very big questions, choose two of the brainstorming questions (one from each group) and write a
short response for each. When you're done, be prepared to share your ideas with a partner.
Brainstorming Questions
Response 1 Questions (Choose one)
1. What problems, either in your school or community, or in the world, are you concerned about?
Which ones do you most want to be solved?
2. What person, group, or event inspires you the most? Why? How could they or it be a model for your
own life?
3. What activities or experiences in your life have been the most enjoyable? Why do you think that is?
Response #1
I chose question #
Your online identity, uniqueness, and digital footprint are what define you as a person. Depending on what you do online, it develops your online reputation or impression.
Who, what, or what event most inspires you? Why? How could it or they serve as a role model for your life?Judith K. Rowling - No one can deny this British native's success, regardless of whether you're a Harry Potter fan or not. The estimated $15 billion valuation of the Harry Potter empire (yes, you read that correctly).
Many people are unaware of Rowling's difficult past, which occurred immediately before the publication of her books.
She wed, endured abuse, gave birth to a daughter, and then filed for divorce from her husband. She had to enroll herself on welfare in order to survive after losing her mother to MS.
Furthermore, every major British publishing business turned down the first Harry Potter novel. One ultimately said yes, and the business was off and running.
J.K. Rowling is an inspirational author because she uplifts kids, establishes strong female role models, and lends her creativity and generosity to charities and rising teenagers.
"Dwelling on dreams while ignoring the present is not healthy." J. K. Rowling
Even if everything is bad, there is still hope for improvement. There are obstacles at every turn, so keep going.
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What is inflation?
Movement, whether upward or downward, of economic activity
Monetary value of final goods and services produced within a country for a specific time period.
The rate at which the price level of goods and services rises.
A measurement used by economics to measures average prices of a market basket of consumer goods and services.
And employer has three employees who are each paid a salary of $1250 per month. He wants to give each of the three employees a $125 per month raise and he wants to hire an additional salaried employee. If the salary budget for these employees is $5325 per month, how much can he afford to offer the new employee?
Answer:
$1200
Explanation:
The three existing employees earn $1250 each. With an increase of $125, each will now earn $1,375.( $1250 + $125)
The new total for the three employees will be = $4,125
The employer has a budget of $5,325. After paying the three employees, the available balance will cater to the new employee.
The available balance will be $5,325 - $4,125
=$1200
Strait Co. manufactures office furniture. During the most productive month of the year, 3,200 desks were manufactured at a total cost of $83,900. In the month of lowest production, the company made 1,290 desks at a cost of $58,200. Using the high-low method of cost estimation, total fixed costs are
Using the high-low method of cost estimation, the total fixed costs for Strait Co. are approximately $44,078.40.
Using the high-low method of cost estimation, we can determine the fixed costs of Strait Co. by analyzing the difference in production levels and costs between the highest and lowest months.
To calculate the fixed costs, we need to determine the variable cost per unit first. This can be done by finding the difference in total costs between the highest and lowest months, and then dividing it by the difference in production levels.
Let's calculate the variable cost per unit:
Variable cost per unit = (Total cost in highest month - Total cost in lowest month) / (Production in highest month - Production in lowest month)
Variable cost per unit = ($83,900 - $58,200) / (3,200 - 1,290)
Variable cost per unit = $25,700 / 1,910
Variable cost per unit ≈ $13.46
Now that we have the variable cost per unit, we can calculate the fixed costs by subtracting the variable costs from the total costs in any given month.
Let's use the data from the highest month:
Total costs = Fixed costs + (Variable cost per unit × Production)
$83,900 = Fixed costs + ($13.46 × 3,200)
Fixed costs = $83,900 - ($13.46 × 3,200)
Fixed costs ≈ $44,078.40
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If an entrepreneur can establish a strong and trustworthy management team, then the
risk might be avoided.
O compliance
O financial
strategic
operational
Mark this and return
Ne
Answer:
operational
Explanation:
bc it is
If an entrepreneur can establish a strong and trustworthy management team, then the operational risk might be avoided. Thus option D is correct.
What is Team?When a group of people come together in an official setting and in a disciplined manner to achieve the common objective of business with individual roles and shared responsibilities representing teams.
A strong and trustworthy management team helps in better controlling and coordinating events which help to avoid operational risk and helps in producing efficient results with productivity.
The enforcement of laws safeguarding the environment and employees helps to reduce compliance risk, and building a stable number of clients helps in reducing financial risk.
Therefore, option D operational is appropriate.
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match 5 source documents to their subsidiary books
do you agree with the marketing customer service mantra the customers is always right
Answer:
depemds
Explanation:
in jobs usually they tell the employee the customer is right to satisfy them and not lose customers but it is depending the situation
The junior class at Summerfield High School sold a total of 375 tickets for their spring festival. The adult tickets sold for $7. 50 each and the student tickets sold for $4. 50 each. If the junior class collected $2,212. 50 in ticket sales, how many student tickets did the class sell?.
The number of student's ticket sold is 200.
Two equations can be gotten from the question:
a + b = 375 equation 1
7.5a + 4.5b = 2,212.50 equation 2
Where:
a = number of adult ticket sold
b = number of children's ticket sold
In order to determine the value of b, multiply equation 1 by 7.5
7.5a + 7.5b = 2812.50 equation 3
Subtract equation 2 from 3
3b = 600
Divide both sides by 3
b = 600 / 3
b = 200
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If you own 15,000 shares of stock of Nike and it pays a dividend of $0.22 per share, then what is the total dividend you will receive? The total dividend that you will receive is S. (Round to the nearest dollar.)
If you own 15,000 shares of Nike stock and the company pays a dividend of $0.22 per share, you can calculate the total dividend you will receive as follows:
The total dividend you will receive is $3,300.
To calculate the total dividend, multiply the dividend per share ($0.22) by the number of shares you own (15,000):
$0.22 x 15,000 = $3,300.
This means that you will receive $3,300 in dividend payments from Nike. Dividends are a portion of a company's earnings that are distributed to its shareholders, typically on a quarterly basis. As a shareholder, you are entitled to receive a portion of these earnings based on the number of shares you own. The dividend per share can vary depending on the company's financial performance and dividend policy.
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Publishers and printing companies are both involved with books, magazines, and newspapers. One type of company is
considered part of the manufacturing section, because it produces the physical product: books, magazines,
newspapers, and so on. What sector does publishing belong to, since it does not produce a tangible product (until
printing transforms it into one)?
O primary, because it makes original content
secondary, because it transforms ideas into physical objects
tertiary, because it provides a service
quaternary, because it involves research
Answer:
quaternary, because it involves research
Explanation:
if a union is able to decrease the supply of workers in a competitive labor market but the union cannot affect the demand for its members' labor, then
While a union's ability to decrease the supply of workers can have localized benefits for its members, the inability to influence labor demand restricts the union's broader impact on the labor market.
If a union is able to decrease the supply of workers in a competitive labor market but cannot affect the demand for its members' labor, several implications arise. First and foremost, by reducing the supply of workers, the union can potentially exert upward pressure on wages and benefits for its members. With a smaller pool of available workers, employers may be compelled to offer higher compensation to attract and retain unionized workers.
However, since the union cannot influence the demand for its members' labor, there are limits to the benefits it can achieve. Even if wages rise within the union, the overall demand for labor remains unchanged, meaning that non-unionized workers may continue to compete for job opportunities at market-driven rates. Consequently, the union's impact on the broader labor market may be limited.
Additionally, the reduced supply of unionized workers may create opportunities for non-unionized workers to fill the gap, potentially leading to an increase in non-unionized employment. This dynamic could affect the relative bargaining power between unions and employers, as well as the overall composition of the labor market.
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1.4 Determine the area of the triangular ABC with AC-5cm and height DB=30 mm. A B 30mm D 5 cm C
The triangle ABC's area, given its dimensions, is 75 cm2.
Given:The triangle ABC has a height of DB = 30 mm and an AC of 5 cm.
To locate
Calculate the triangle's ABC's area.
Solution:Triangle's surface area is halved (base height)
30 mm in height with a 5 cm base
Triangle's surface area equals half (5 30)
Triangle's surface area is 75 cm2.
As a result, the triangle ABC's area, given its dimensions, is 75 cm2.
What is the triangular sheet's area?The entire area filled by a triangle's three sides in a two-dimensional plane is referred to as the triangle's area. The fundamental equation for a triangle's area is A = 1/2 b h, where b and h are the product of the triangle's base and height.
What is the triangle's volume?Volume is equal to 0.5 * b * h * length, where b is the triangle's base length, h is the triangle's height, and length is the prism length.
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why is money not considered to be a capital resource in economics
Money is not considered to be a capital resource in economics because it is not a productive input.
What is capital resource ?
Capital resources are financial resources that a company uses to purchase assets that generate income. These resources include cash, cash equivalents, and other liquid assets, as well as equity investments and long-term debt. Capital resources are necessary to fund the activities of a business, such as investing in new equipment, hiring new employees, and expanding operations. Capital resources are different from operational resources, which are resources needed to run the day-to-day operations of a business, such as labor, materials, and supplies.
In economics, money is not considered a capital resource because it is not a productive input. Capital resources are tangible goods and services that aid in the production of goods and services. Money cannot produce anything on its own and is instead used as a medium of exchange to purchase goods and services.
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List and describe the three drivers of relationship development
strategies in the field of services marketing research; give two
examples of each.
In the field of services marketing research, the three drivers of relationship development strategies are trust, commitment, and communication. Trust is critical for establishing a long-term relationship with customers and plays a significant role in building a business's reputation.
Commitment means that both the customer and the company are committed to their relationship. Communication is the process of exchanging information between two parties.List and describe the three drivers of relationship development strategies in the field of services marketing research are as follows:
1. Trust: Trust is the foundation of a long-term relationship with customers and plays a significant role in building a business's reputation. Trustworthy businesses are more likely to attract and retain loyal customers.
2. Commitment: Commitment means that both the customer and the company are committed to their relationship.
3. Communication: Communication is the process of exchanging information between two parties. Communication is critical in building relationships as it helps businesses understand their customers' needs.
The three strategies discussed above are just of how businesses can implement these drivers to develop long-term relationships with their customers.
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To provide better access and possibly reduce the number of workers needed, work cells may be designed in the shape of what letter of the alphabet?
Work cells may be designed in the shape of the letter U to provide better access and possibly reduce the number of workers needed.
Work cells are designed to improve the efficiency of manufacturing processes by grouping together the necessary equipment and workers to produce a specific product or service. One way to optimize the use of space and personnel in work cells is to arrange the equipment and workstations in a U-shape.
This design allows workers to have better access to the equipment and materials they need to complete their tasks, as well as better communication with each other. Additionally, the U-shape can help reduce the number of workers needed by eliminating unnecessary movement and transportation of materials, ultimately improving productivity and reducing costs.
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how does surface tension work in chemistry
Surface tension is a phenomenon that occurs in chemistry due to the cohesive forces between molecules at the surface of a liquid.
How do these forces arise ?
Chemistry experiences surface tension, a phenomenon arising from cohesive forces amid molecules at the surface of a liquid generated by intermolecular forces like hydrogen bonding, dipole-dipole interactions and London dispersion.
They experience a net inward force as there are no molecules above to balance out the exerting cohesive forces below when situated atop of a liquid's surface.
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Surface tension could be a property of fluids that emerges due to the cohesive powers between the fluid particles.
How does surface tension work in chemistry?Cohesion is the propensity of comparative atoms to pull in each other, and in a fluid, these cohesive powers hold the atoms together and avoid them from isolating.
At the surface of a fluid, the atoms involvement diverse strengths than they do inside the bulk of the fluid. Since there are no particles over the surface, the atoms at the surface are pulled in more unequivocally to the neighboring atoms at the surface than to the particles within the air above the surface.
Therefore, this comes about in a net internal drive that makes a "skin" or "film" at the surface of the fluid, known as surface tension
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assume+a+bank+offers+an+effective+annual+rate+of+7.26%.+if+compounding+is+monthly+what+is+the+apr?
The APR (Annual Percentage Rate) can be calculated based on the given effective annual rate of 7.26% with monthly compounding. The APR is approximately 6.98%.
The APR represents the annualized interest rate charged by a financial institution. It is used to compare different loan or investment options. In this case, we are given the effective annual rate of 7.26%, which takes into account the compounding frequency of monthly. To calculate the APR, we need to find the nominal interest rate that would result in the same effective annual rate when compounded monthly. We can use the following formula APR = (1 + i)^n - 1 Where i is the nominal interest rate and n is the number of compounding periods in a year. By substituting the values into the formula, we can solve for i: (1 + i)^12 - 1 = 0.0726 Simplifying the equation: (1 + i)^12 = 1.0726 Taking the twelfth root of both sides: 1 + i = (1.0726)^(1/12) 1 + i = 1.005992 Subtracting 1 from both sides: i = 0.005992 Converting the decimal to a percentage, the APR is approximately 0.5992%, which is rounded to 6.98%.
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As an economy increases its aggregate output toward full employment output, the level of wage and price stickiness in a sras curve:_______
The degree of wage and price stickiness in an SRAS curve diminishes as an economy moves closer to full employment in terms of aggregate output.
The total amount of production created and delivered in the economy over a specific period of time is known as aggregate output. The entire money earned by all economic output forces over a specific time period is known as aggregate income. The total amount of money that people and businesses make within the economy is known as aggregate income. The entire income is not adjusted for taxes or inflation. Aggregate income reveals how much money people and firms actually make, as opposed to aggregate output, which describes all the goods and services generated in an economy.
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14.3% complete question a company has two web servers using a load-balance configuration. users report having periodic trust errors connecting to the website. both servers are using web-server certificates and show the same path. which of the following actions would most likely resolve the issue?
By taking these actions, discussed below, you will most likely resolve the issue of users experiencing periodic trust errors when connecting to the website with the two web servers in a load-balance configuration.
Steps to follow to resolve the issue.
To resolve the issue of periodic trust errors connecting to the website with two web servers using a load-balance configuration, you should follow these steps:
1. Verify that both web servers have valid SSL certificates issued by a trusted Certificate Authority (CA).
2. Ensure that the SSL certificates on both web servers have not expired and are still valid.
3. Check if the web-server certificates on both servers have the same Subject and Subject Alternative Names, which should include the domain name of the website.
4. Verify that the load balancer is correctly configured to handle SSL traffic, and it should either pass through the SSL traffic to the web servers or terminate SSL traffic and re-encrypt it before forwarding it to the web servers.
5. Ensure that the Certificate Revocation List (CRL) and Online Certificate Status Protocol (OCSP) are accessible and correctly configured on both web servers, allowing clients to check the revocation status of the certificates.
By taking these actions, you will most likely resolve the issue of users experiencing periodic trust errors when connecting to the website with the two web servers in a load-balance configuration.
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an organization's ________ goals are official statements of what an organization says, and what it wants its stakeholders to believe its goals are.
a. implicit
b. stated
c. authentic
d. real
An organization's stated goals are official statements of what an organization says, and what it wants its stakeholders to believe its goals are.
Stated goals refer to the formal and publicized objectives that an organization communicates to its stakeholders, such as employees, customers, investors, and the general public. These goals are typically expressed in official documents like mission statements, vision statements, and strategic plans. Stated goals are important for setting a direction for the organization and shaping the perceptions and expectations of its stakeholders.
The purpose of stated goals is to provide a clear and coherent message about the organization's intentions and aspirations. They are often designed to inspire confidence, attract support, and guide decision-making within the organization. However, stated goals may not always align with the authentic or real goals of the organization. While organizations may publicly state certain goals, the actual goals and priorities pursued by the organization may differ due to various factors, such as internal dynamics, external pressures, or changing circumstances. Therefore, it is important to consider both the stated goals and the actions of the organization to gain a comprehensive understanding of its true intentions and objectives.
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The law of demand illustrates
A
a direct relationship between price and quantity demanded.
B
an inverse relationship between price and quantity demanded.
ООО
C
a direct relationship between price and demand.
D
an inverse relationship between price and demand.
Answer: A
Explanation:
Which of the following is NOT an advantage of paying bills online?
A. You save the cost of postage associated with mailing checks.
B. If you pay by check, you will have a record of your payment.
C. If you pay a fee for every check you write, you save on bank fees.
D. The ability to pay bills while away from home on vacation.
D i not sure forget me if it wrong
If management operates to maximize the firm's profits, this will also maximize the market value of stockholders' wealth.
a. True
b. False
Answer:
b. False
Explanation:
The shareholder wealth could be maximized when there is a rise in the stock price as when the stock price rises, it automatically rised the value of the firm and the net worth also
Therefore in the given situation, in case when the firm wants to maximise its profits so it not necessary to increased the market value
Therefore the given statement is false
8. Ann Wills is offered a sales job with two firms. Boden Tools offers her a salary of $800 a month, a
commission of 3% on total monthly sales, and 3% more on monthly sales over $75,000. Sentor, Inc.
offers her a commission of 2.5% on the first $45,000 of monthly sales, 4.5% on the next $20,000 of
monthly sales, and 7% on all monthly sales over $65,000. If Ann could average $87,000 in sales a month
at either job, at which job could she earn more per month, and how much more?
Ann will earn more at Sentor Inc. as she will earn $1955 more.
Based on the information given in the question, the earnings from the companies will be:
Boden Tools:
= $800 + (3% × $87000) + (3% × $87000)
= $800 + $2610 + $2610
= $6020
Sentor Inc.
= (2.5% × $45000) + (4.5% × $20000) + (7% × $85000)
= $1125 + $900 + $5950
= $7975
Difference in earnings = $7975 - $6020 = $1955
Therefore, based on the calculation above, she'll earn more at Sentor Inc. She will earn $1955 more.
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True or False: On average family businesses survive longer than nonfamily
The given statement On average family businesses survive longer than nonfamily is True beause, Research has shown that family businesses tend to have a longer lifespan compared to nonfamily businesses.
According to a study by the Conway Center for Family Business, family businesses are more resilient and tend to outlast their counterparts because they have a stronger sense of purpose and a commitment to their family legacy. Family businesses also tend to be more financially conservative, which allows them to weather economic downturns and maintain stability in the long term.
Moreover, the emotional bond and shared values within a family business often translate into a stronger work ethic and a more cohesive team, which can lead to increased productivity and success. However, family businesses also face unique challenges, such as potential conflicts between family members and difficulty separating family issues from business decisions. Despite these challenges, the longevity and success of family businesses make them an important and valuable part of the global economy.
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Ida Sidha Karya Company is a family-owned company located in the village of Gianyar on the island of Bali in Indonesia. The company produces a handcrafted Balinese musical instrument called a gamelan that is similar to a xylophone. The gamelans are sold for $850. Selected data for the company’s operations last year follow: Units in beginning inventory 0 Units produced 250 Units sold 225 Units in ending inventory
Answer:
Units in ending inventory is 25
Explanation:
The units in ending inventory can be computed using the cost of goods sold formula and rearranging it to make ending inventory the subject of the formula.
Cost of goods sold=beginning inventory+units produced-ending inventory
ending inventory=beginning inventory+units produced-Cost of goods sold
beginning inventory is 0
units produced is 250 units
unit sold is 225 units
ending inventory=0+250-225
ending inventory=25 units