Answer:
b) internal rate of return will exceed its required rate of return.
Explanation:
The internal rate of return is the discount rate at which the NPV = 0. If the NPV is positive when calculated using the project's discount rate, then the IRR is going to be higher than the discount rate.
Option A is wrong because the profitability index (PI) of a project is calculated by dividing the present value of its cash flows by its cost. If the NPV is positive, it means that the present value of its cash flows will be greater than the costs, so the pI will be more than 1.
Option C is wrong because if the costs exceed the benefits, then the NPV will be negative.
Option D is wrong because that would mean that the NPV is negative.
Option E is something made up that doesn't make any sense.
When all tests and or surgeries are done.
Answer:
group 1 Markup = 0.333
group 2 Markup = 0.25
group 1 price = $79.98
group 2 price = $75
Explanation:
given data
Group 1 elasticity of demand = -4
Group 2 elasticity of demand = -5
marginal cost = $60
to find out
optimal markups and prices under third degree price discrimination
solution
we get here Under Markup pricing that is for group 1 and 2 is
Markup is = 
.....................1
so for group 1 Markup = 
group 1 Markup = 0.333
and
for group 2 Markup = 
group 2 Markup = 0.25
and
price will be
price = ( 1 + markup) × Marginal cost ...................2
group 1 price = ( 1 + 0.333 ) x 60
group 1 price = $79.98
and
group 2 price = ( 1 + 0.25 ) x 60
group 2 price = $75
Answer:
new buy
Explanation:
Hinsdale High School has recently decided to sponsor a rugby team. It is in the process of considering where to buy the uniforms. This purchase is a new buy situation.
The new by situation also referred to as the new task situation is a business buying situation in which the buyer purchases a product or service <u>for the first time.</u>
We are told in the scenario that ''Hinsdale High School has <u>recently decided to sponsor a rugby team</u>.'' implying that the rugby team did not exist before. Hence buying uniform for such a team will be a new buying situation
Answer: cost based pricing
Explanation:
Cost-based pricing is when the pricing is based on the production cost, the manufacturing cost and also the distribution cost.
The price of such good or service will be derived when a fraction of the manufacturing costs is added to the selling price. This sum will be required to generate the profit for the product.
Even though it is easy to calculate, it ignores demand and competitive conditions.
