Answer:
A principal-agent game.
Explanation:
The principal-agent problem is a conflict in priorities between the owner of an asset and the person to whom control of the asset has been delegated.
The problem can occur in many situations, from the relationship between a client and a lawyer to the relationship between stockholders and a CEO.
Resolving a principal-agent problem may require changing the system of rewards in order to align priorities or improving the flow of information or both
Gifts would be classified as an unearned source of income
Answer: 1.89%
Explanation:
You can use Excel to find the IRR here:
Investment amount should be first as shown and should be in negative.
The cash flows will then follow each other by year.
Use the =IRR formula to select all the cells and the IRR will show.'
IRR here = 1.89%
Answer:
350,000 net income
+69,700 depreciation
+13,300 loss on disposal
433,000 adjusted income
no change in working capital
cash generated from operating activities 433,000
Explanation:
We need to remove from the net incoem the non-monetary terms
The depreication is an accounting concept, it doesn't involve cash disbursements, so it is added.
Also the los son disposal doesn't involve using cash so is also removed.
Rule:
to remove a non-monetary expense we should add it.
to remove a non-monetary gain we should decrease it.