Answer:
For example, it's really easy to finance while buying in an existing business while starting a new one. In Addition tons of bankers and investors all around the world would feel more comfortable dealing with a business that already has had a proven track record.
Explanation:
Answer:
Accept Project A and reject Project B
Explanation:
See the images to get the answer.
Decision: Required rate of return = 16% = Cost of capital.
If Internal rate of return (IRR) > the cost of capital = Accept the project.
If Internal rate of return (IRR) < the cost of capital = Reject the project.
From the basis of the formula, we can accept the project A because the IRR of Project A (19%) is higher than the cost of capital (16%). On the other hand, we can reject the project B because the IRR of Project B (14%) is smaller than the cost of capital (14%).
Answer: Option(a) is correct.
Explanation:
Corn chips and potato chips, both are substitute goods and thus, affect each others demand by a small changes in various factors.
In this question, a good weather increases the harvesting of corn which increases the supply of corn chips.
This shifts the supply curve rightwards as a result price falls and quantity increases. Hence, this lower price, increases the consumer surplus in the market of corn chips.
This change in the supply of corn chips will affect the demand for potato chips in the potato chips market. So, the demand curve for potato chips shifts leftwards. This shift in the demand curve, reduces the price level and quantity level. Hence, this lowers the producer surplus in the market for potato chips.
Answer:
Machine hours (X) Utility cost
High 2,680 8,100
Low <u> (740)</u> <u> (4,650)</u>
<u> 1,940 </u> <u> 3,450</u>
Variable cost per machine hour
= $3,450/1,940 hours
= $1.7784 per machine hour
Explanation:
Using high and low method, we will obtain the highest activity (machine hours) and the corresponding cost. We will also obtain the lowest activity and the corresponding cost. Thereafter, we will deduct the lowest points from the highest points. Finally, we will divide the difference in cost by the difference in machine hours in order to determine the estimated variable cost per machine hour.