Answer:
The amount of annual rental payment = $4,906.205 per annum
Explanation:
Amount of lease payment that Mequon Inc must demand for earning 6% rate of return i.e discounting factor:
=3.465
Amount that will be paid per year:
[(Value of machinery-resifual value at the end of 4 yers expected by Mequon)/discounting factor for 4 years at 6%]
=($47,000-$30,000)/3.465
=$4,906.205(approx.) per annum.
Community health centers are like hospitals
Answer: personal selling rather than mass media advertising in the promotional mix the firm is using a Standardized strategy
Explanation:
Hope this helps <3
Answer:
96.57%
Explanation:
The most efficient capacity utilization rate is 100 units per hour.
The firm used 175 hours and produced 16,900 units in total.
If it had used the hours in the most efficient way, it would have produced a total of:
175 hours x 100 units per hour = 17,500 units
The 16,900 units that it actually produced, as a percentage of the 17,500 units that the firm could have produced is equal to:
16,900 x 100% / 17,500 = 96.57%.
Thus, the capacity utilization rate is 96.57%.
Willy should buy(a) no insurance since the cost per dollar of insurance exceeds the probability of a flood
Explanation:
Willy's only source of wealth is his chocolate factory. He has the utility function p(cf)1/2 + (1 − p)(cnf)1/2,, where p is the probability of a flood, 1 - p is the probability of no flood, and cf and in are his wealth contingent on a flood and on no flood, respectively. <u>The probability of a flood is p = 1/6. </u>The value of Willy's factory is $500,000 if there is no flood and $0 if there is a flood. Willy can buy insurance where if he buys $x worth of insurance, he must pay the insurance company $2x/17 whether there is a flood or not but he gets back $x from the company if there is a flood. Willy should buy
The answer for the above statement is option ( A.) no insurance since the cost per dollar of insurance exceeds the probability of a flood .
It is because the probability of flood as given in the question is only 1/6, whereas the chances of no flood are 5/6. So that means that he should not buy the insurance because the probability of the flood is comparatively less than the amount Willy has to pay to the insurance company and the amount paid back to willy by the insurance company is $ x worth of insurance
