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sp2606 [1]
3 years ago
14

Firm has three different investment options, each costing $10 million. option a will generate $12 million in revenue at the end

of one year. option b will generate $15 million in revenue at the end of two years. option c will generate $18 million in revenue at the end of three years. which option should the firm choose?
Business
1 answer:
LekaFEV [45]3 years ago
7 0
Option a in order to get highest profit a year
a: 12 million a year
b: 15 ÷ 2 = 7.5 million a year
c: 18 ÷ 3 = 6 million a year.
to get most revenue, option a is the best choice
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vladimir1956 [14]

When a firm's customers make investments in order to use its particular product or service, the customers incur switching costs if they purchase another firm's products or services instead. Therefore, the option B holds true.

<h3>What is the significance of switching costs?</h3>

The switching costs can be referred to or considered as the costs incurred by the customers of a product or a service when they use the alternatives or the competitive products available in the market, instead of the product they were using earlier.

Therefore, the option B holds true and states regarding the significance of the switching costs.

Learn more about switching costs here:

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When a firm's customers make investments in order to use its particular product or service, the customers incur which type of costs if they purchase another firm's products or services instead?

A. Acquisition costs

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4 0
1 year ago
Leather Shop earned net income of $ 71,000 after deducting depreciation of $ 5,000 and all other expenses. Current assets decrea
Thepotemich [5.8K]

Answer:

$89,000

Explanation:

Given that,

Net Income = $71,000

Depreciation = $5,000

Increase in Current Liabilities = $9,000

Decrease in Current Assets = $4,000

Net Cash from Operating Activities:

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= $71,000 + $5,000 + $9,000 + $4,000

= $89,000

Therefore, the Leather Shops cash provided by operating activities​ (indirect method) is $89,000.

7 0
3 years ago
A Canadian subsidiary of a U.S. parent firm is instructed to bill an export to the parent in U.S. dollars. The Canadian subsidia
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Answer:

10% foreign exchange loss on the U.S. dollar accounts receivable

Explanation:

Based on the information provided within the question it can be said that in this example the Canadian subsidiary will record​ a 10% foreign exchange loss on the U.S. dollar accounts receivable. That is because as the Canadian dollar has appreciated​ 10% against the U.S. dollar, it means that it has lost 10% of it's buying power due to its foreign exchange price change, thus resulting in a loss which needs to be recorded.

4 0
3 years ago
Specialization is important in an economy because it leads to which important economic concept?
rewona [7]

It leads to voluntary exchange.

7 0
3 years ago
________ involves the study of an individual's involuntary responses to marketing stimuli, including eye movement, heart rate, s
mixer [17]

Answer:

A. Neuromarketing

Explanation:

Neuromarketing uses functional magnetic resonance imaging and brain waves to study the involuntary responses to marketing stimuli of an individual

7 0
3 years ago
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