Answer:
Explanation:
If a company(Marriott in this case) uses a single hurdle rate to decide whether an investment should be undertaken or not, some projects that need to be accepted would end up being rejected and vice versa. For example,
if Marriott's hurdle rate is 10% and it's evaluating
project A with a 15% cost of capital &
project B with a 6% cost of capital .
Evaluation:
Project A would probably lead to a negative NPV because the cost of capital is higher (meaning it is riskier than the firm) hence could be rejected, but using the company hurdle rate of 10% to evaluate it could make its NPV positive. This would ignore the actual additional risk of the project.
An appraised price is an evaluation of a property's fee-based totally on a given factor in time.
An appraised cost is an evaluation of a property's value based totally on a given factor in time. The evaluation is accomplished by means of a professional appraiser for the duration of the mortgage origination technique. The appraiser is normally selected by way of the lender but the appraisal is paid for by way of the borrower.
Actual property professional opinion is typically towards the idea of paying extra than a property's appraised price. Even if you make up the difference on below-appraised assets, you may have assets well worth much less than what you paid.
If buyers are few and far among whilst you list your house, there may be a hazard the marketplace cost may be lower than the appraised price. then again, in case you're seeing a ton of interest in your own home from a couple of consumers, you could discover that the marketplace value is better than the appraisal value.
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Answer:
The equivalent units of production for materials is 570.
Explanation:
Equivalent units measures the number of units completed to the extend of in puts introduced to the outputs.
<u>Calculation of equivalent units of production for materials.</u>
Units completed and transferred (450 × 100%) 450
Units in ending work in process ( 60 × 20 %) 12
Total equivalent units of production for materials 570
Conclusion :
The equivalent units of production for materials is 570.
<span>it must include limited resources and making a choice.
Economy is the knowledge that teach us how to allocate limited resource in order to obtain as much value as possible.
To obtain that kind of value, it will involve making a choice after considering our situation, our capabilities, and our competitors</span>
Rony as the managing director of a fabric manufacturing company enjoys an employee benefit called <u>perquisites</u><u> (D)</u>.
Let's discuss each employee benefit option we have:
Novated lease is an employee benefit that allows an employer pays for its employee car lease and car runnit costs out of its employee's salary package. An employee will choose a car he wants and a novated lease arrangement is set up between the employee, employeer, and car agent. The employer then will pay directly to the car agent from the employee's salary. The employee may save tax and running costs using this kind of leasing.
Fiscal Incidence is the combined overall economic impact of both government taxation and expenditure on the real economic income of individuals. Fiscal incidence happens when the econonmic incidence of taxation is combined with the economic incidence of government expenditure. Fiscal incidence is the overall increase or decrease in welfare that individual enjoys from the state's taxing and spending policies.
Swaps is a derivative contract which stated that the two parties will exchange the cash flows or liabilities from two different financial instruments. Swaps usually are based on a notional principal amount. The most common kind of swap is an interest rate swap.
Perquisites or fringe benefits are benefits an employee received over and above his standard salary. Some of these components are taxed separately and someother are tax-exempted. Perquisites may be classified into 3 different types:
- Taxable perquisites
- Tax-exempted perquisites
- Perquisites taxable only by employee
By offering perquisites to its employee, a company may increase its employee productivity, loyalty and retention. Prequisites could also be used as an attraction for top talent.
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Complete Question:
Rony is the managing director of a fabric manufacturing company. In order to limit the profit of the company and therefore, the txes on the business the management pays a hefty amount to Rony as year-end bonuses. The company also pays for his family cavations and foreign trips. The benefits enjoyed by Rony are called ____
a. Novated leases
b. Fiscal incidences
c. Swaps
d. Perquisites
