Answer:
a. True
An increase in interest rate on bond will affect intel's decision, as the bonds, market provides firms an opportunity to borrow money.
If Intel has enough of its own funds to build the new factory without borrowing, an increase in interest rates still affects Intel’s decision about whether to build the factory
a. True
Even if Intel can raise it's own resources to build the new factory without borrowing, the increase in the rates of bond will still affects it's decision, as the increase in the rates of bond will make the market more attractive.
Explanation:
a. True
An increase in interest rate on bond will affect intel's decision, as the bonds, market provides firms an opportunity to borrow money.
If Intel has enough of its own funds to build the new factory without borrowing, an increase in interest rates still affects Intel’s decision about whether to build the factory
a. True
Even if Intel can raise it's own resources to build the new factory without borrowing, the increase in the rates of bond will still affects it's decision, as the increase in the rates of bond will make the market more attractive.
Answer: profitability
Explanation: The internal rate of return method differs from the net present value method in that it results in finding the profitability of the potential investment.
In capital budgeting which is the process by which companies determine whether a new investment or expansion opportunity is worthwhile and if undertaken, could either yield net profits or losses for the company, both the net present value (NPV) (present value of cash inflows minus the present value of cash outflows over a given period time) and the internal rate of return (IRR) methods are employed.
How does the IRR method determine profitability? - This it does by using a percentage value rather than a dollar amount and therefore is advantageous in representing the possible returns of investments by comparing it with other alternative investments.
Answer:
Accrual Principle
Explanation:
The accrual principle is when a transaction is recorded in the time period that it occurs. In this case, recording a Friday transaction on Friday.
Answer:
The correct answer is letter "B": Increased price elasticity of demand for the DVD player industry because XBOX are substitutes.
Explanation:
Price elasticity of demand reflects the changes in quantity demanded for a good or service as a result of changes in price. It is calculated by dividing the percentage change in quantity demanded by the percentage change in price. If the result is equal to or greater than one (1) the demand is elastic.<em> It means a minimum change in price has a major impact on the quantity demanded volume.
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Thus, <em>if XBOX implements DVD features, DVD players will face an increase in their price elasticity of demand because changing DVD players' prices could change their quantity demanded by far because consumers will prefer purchasing an XBOX which is a substitute.</em>
