Answer:
The right solution is Option a (-$6,678).
Explanation:
Given that:
Up-front cost,
= $250,000
Expected cash flows,
= $110,000
Assuming cost of capital,
= 12%
Now,
The expected net present value will be:
= 
= 
=
($)
Answer:
A. participative budgeting
Explanation:
Participative budgeting -
It refers to the type of method of budgeting , where the person implementing the budget as well as the person getting affected by the budget are involved in the process of creating the budget , is referred to as participative budgeting .
In this method the top - level managers are supposed to share the decision of budgeting with the bottom - level managers as well .
Hence , from the given information of the question ,
The correct answer is A. participative budgeting .
The correct option is - 3 ( "Money spent last month repairing a damaged front fender" )
<u>Explanation:</u>
Sunk cost means the cost that has been already incurred in the past and cannot be recovered. This implies that sunk costs should be not be considered in future decision making of the project, because these are the cost that can not be changed with under taking the project or not. The significant aspect about this costs is that they shouldn't be allowed to influence subsequent decisions.
With the theatre ticket example, there's an opportunity to leave the theatre at the intermission and spend the rest of your evening doing something else more enjoyable. If you don't like the play then you might decide to leave, but the sunk cost of the ticket shouldn't influence your decision to stay or leave.
Answer: <em>Please refer to Explanation</em>
Explanation:
1. The fish in the river are considered <u>rival in consumption</u> and <u>non-excludable</u> whereas the fish in the private stream are <u>rival in consumption</u> and <u>excludable</u>.
When a good is said to be Rival in Consumption, it means if it is consumed by one person first, another person cannot get it which reduces their chances of getting the same good. Once Eric consumes or catches a fish, no one else can catch that fish which means fishing is a Rival in consumption activity.
When a good is said to be Excludable, it means that people can be prevented from accessing the good of they have not paid for it. The pond on Eric's property is private so people cannot just come in and fish. It is Excludable. Non-Excludable on the other hand is the inverse and means people who have not paid can access the good like the river in town.
2. In other words, the fish in the river are example of <u>common resource </u>and the fish in the private stream are an example of <u>private good</u>.
Common resources are available to everyone as they are in the public domain like the fish in the river. Private goods however are not in the public domain and ate meant to be accessed by only certain people like the private stream which is only accessible by Eric's family or whoever they want to have access to it.
3. Fishing in the river will likely lead to the <u>tragedy of commons</u> because of which of the following reasons?,
B. anyone can fish in the river, and one person's fishing activity decreases the ability of someone else to fish with success.
The Tragedy of the Commons is an Economic explanation of the situation whereby people who have easy access to a resource such as the river in this instance, are able to use it with little cost to them. This might lead to a situation where they use it to the detriment of others because they will fish more and this will reduce the amount of fish left for others.
<span>Personal selling requires the two-way flow of communication between a buyer and a seller, often in a face-to-face encounter, designed to influence a person's or a group's purchase decision. When meeting with people in person, it allows for conversation to flow back and forth smoothy and communication is much better. Having face-to-face meetings allows the buyer and seller to connect on a different level then if it were email, phone or another type of communication.</span>