Answer:
b. achieve a zero net present value for the project.
Explanation:
Break-even point at the level of activity where a project or a business makes no profits or losses. It is the point where revenues match costs. The break-even salvage value of a particular project is the level where the projects return equal to the required rate of return. Therefore, the project does not create losses, nor does it make profits.
In the Net present Value analysis, a project will have positive, zero , or a negative net present value. A zero present value, the required rate of return of the projects match the discount rate, which is the expected rate of return. The break-even salvage value is, therefore, the level where the net present value is zero.
Answer:
Increase
Explanation:
Bonds refer to medium of raising long term finance whereby the issuer agrees to pay periodic coupon payments and principal repayment upon maturity to the lenders.
Bond ratings convey the credit risk a bond carries. For instance, AAA rating is considered to be the best rating followed by AA, etc. Such ratings depict the credit worthiness of the bond issuer.
Higher or better the credit rating, more popular the bonds would be, lesser would be the investment risk and thus more would be their demand.
In the given case, the bonds which were initially rated BBB have been upgraded to AA. This would result into an increase in the demand for such bonds.
The allocation of money for the additional expense that equates to the cost of renovating the leased space to meet the tenant's business needs is referred to as a tenant improvement allowance.
<h3 /><h3>What is the Tenant Improvement Allowance?</h3>
It corresponds to a previously negotiated amount of money, which will be provided by the owner to the tenant with the aim of covering all or part of the construction costs.
Therefore, a tenant improvement allowance is a resource that can be applied to all construction-related expenses related to physical improvements to the site.
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Answer:
d) reach an efficient solution if transaction costs are sufficiently low and property rights are well-defined.
Explanation:
Coase theorem states that the elected parties are able to find the efficient solution for externalities if the transaction cost are low.
Main points of Coase theorem
1) Parties able to find efficient solution when affected by externality
2) Transaction cost must be low but practically it rarely low so in that case coase theorem sometimes inapplicable
Answer:
Revenues are the amounts a business charges its customers for services it provides or goods it sells to them.
Revenue is reported when the company fulfills its promise to transfer control of a good or service to a customer.
Explanation:
The accounting follows principles which state that revenue will be recognize based on conservatisim and only when it is earned. Thus, it will be recognize when the business transfer control of the good or perofrm the serviced to a customer. The payment of a customer do not represent revenue until the job is complete or the goods delivered.
