Answer:
The correct answer is B.
Explanation:
Giving the following information:
Cash flow= $2,250
n= 4
i= 5%
Additional investment= $3,000
<u>First, we need to calculate the future value using the following formula:</u>
FV= {A*[(1+i)^n-1]}/i
A= annual deposit
FV= {2,250*[(1.05^4) - 1]} / 0.05
FV= 9,697.78 + 3,000
FV= $12,697.78
<u>Now, the present value:</u>
PV= FV/(1+i)^n
PV= 12,697.78/(1.05^4)
PV= $10,446.5
Answer:
c.
More items purchased when prices drop
Explanation:
Lets determine the two variables and their relation in each of the cases.
a)
Quality decreases. Quantity purchased decreases. Both item decreasing is a positive relation and thus would not yield a negative slope.
b)
Spending rises. Income rises. Both items increasing is a positive relation and thus would not yield a negative slope.
c)
Purchases increase. Price decrease. One item increases while the other decreases and thus is a negative relationship with a negative slope.
d)
Qty sold increases. Quality increases. Both items increasing is a positive relation and thus would not yield a negative slope.
Hope that helps.
The denominator of the fixed asset turnover ratio is AVERAGE FIXED ASSET.
The fixed assert turnover ratio refers to the ratio of sales to the value of fixed asset of a company. The ratio is very important in evaluating how a company is using its fixed assets to generate sales.
Mathematically, fixed asset turnover ratio = Net sales / Average fixed assets.
The numerator is net sales while the denominator is average fixed asset.
Answer:
corporate
Explanation:
Corporate level of an organisation involves the whole organisation. The organisation is made up of business units and product lines.
So when one functions at the corporate level he is responsible for all aspects of the business.
In this instance Bill McDermott is the CEO of SAP is in charge of all departments and production lines of the company.
On the other hand functional level deals with a particular department within the organisation. For example human resources, operations, and so on.
