Answer:
<h2>The answer, in this case, would be true or option a) given in the answer choices.</h2>
Explanation:
- In any business, an outside director is commonly identified as an individual who is officially not an employee or a shareholder of the company or business enterprise.
- An outside director can board meetings, analyze essential business information and interact and share opinions with the shareholders regarding company decisions and operational modes.
- The outside director is also eligible to receive certain financial benefits such a periodic annual fee and other stock/bond investment options.
Answer:
-0.11% a year
Explanation:
Susan's real interest rate is the nominal rate of her investment subtracted by the percentage increase in CPI.
The percentage increase in CPI for 2005 was:
Therefore, Susan's real interest rate (i) was:
Answer:
7.5 Years
Explanation:
The computation of the payback period of the given machine is shown below:
<u>Year Initial outflow Cash flow Cumulative cash flow</u>
(52000)
1 10,000 10,000
2 10,000 20,000
3 10,000 30,000
4 8,000 38,000
5 8,000 46,000
6 2,000 48,000
7 2,000 50,000
8 4,000 54000
9 4,000 58000
10 4,000 62000
Now the Payback period is
= Completed years+ required cash ÷ annual cash inflow
= 7 years + 2000 ÷ 4000
= 7.5 Years
Answer:
Company should continue with old machine (Alternative 1)
Explanation:
Preparation of a differential analysis dated April 11 on whether to continue with the old machine (Alternative 1) or replace the old machine (Alternative 2)
DIFFERENTIAL ANALYSIS
Continue with old machine(Alternative 1) ; Replace with old machine(Alternative 2); Differential effect on income
REVENUES
Proceeds from sale of machine
$0 $50500 $50500
COSTS
Purchase price $0 -$75000 -$75000
Direct labor -$56000 -$37000 19000
(11200*5 = -56000)
(7400*5 = -37000)
Income (loss) -$56000 -$61500 -$5500
Based on the above differential analysis the Company should continue with OLD MACHINE (Alternative 1)
Answer:
Monopoly
Explanation:
Monopoly is a market structure where only one firm controls the market share and earn abnormal profits. In a monopoly market, a producer or a supplier earn abnormal profits, which is why they don't try to control the cost of production because they can sell the good at any price. This situation where the cost of production increases, it creates X-inefficiency.
