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3 years ago

___________ is the ability of a product to satisfy a customer

Business

2 answers:

soldier1979 [14.2K]3 years ago

6 0

The answer to this question is: Quality

belka [17]3 years ago

6 0

Answer: Utility

Utility is the ability of a product to satisfy a customer.

Explanation:

Utility refers to the satisfaction, happiness or pleasure that a consumer derived or obtained from the consumption of a product or service. The utility of a product directly influence the demand for the product and the price of the product (good) or service. Utility varies from one customer to another and from time to time. A consumer might not derive the same utility from the consumption of the same product at different points in time.

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Brewster’s is considering a project with a 5-year life and an initial cost of $120,000. The discount rate for the project is 12

Ket [755]

Answer:

NPV = $27,792

Explanation:

Net Present Value = Present Value of Future Cash Flows - Initial Investments

To compute the Present value of Future Cash Flows, we need to first compute the cash inflows during the life of the project:

Year 1: 2,100 * 20 = $42,000

Year 2: 2,100 * 20 = $42,000

Year 3: 2,100 * 20 = $42,000

The units of Year 4 and Year 5 are calculated as follows:

⇒ (0.5 * 1,400) + (0.5 * 2,500) = 1,950 units

Year 4: 1,950 * 20 = $39,000

Year 5: 1,950 * 20 = $39.000

Now, discount the cash inflows at a rate of 12% to calculate the Present Value of Future Cash Flows

⇒ 42,000 + 42,000+ 42,000 + 39,000 + 39,000

(1.12)^1 (1.12)^2 (1.12)^3 (1.12)^4 (1.12)^5

⇒ 37,500 + 33,482 + 29,895 + 24,785 + 22,130

⇒ $147,792

Net Present Value = Present Value of Future Cash Flows - Initial Investments

NPV = 147,792 - 120,000

NPV = $27,792

3 0

3 years ago

Coffee shops that reward customers with one free cup of coffee after every ten coffee purchases are using a ___________ reinforc

sergiy2304 [10]

fixed-ratio, the discount is fixed ( a free coffee) and the number of cofees is fixed 10

6 0

3 years ago

Galactic Inc. is considering an investment in new equipment that will be used to manufacture a smartphone. The phone is expected

Stella [2.4K]

Answer:

24%

Explanation:

The computation of the average rate of return is shown below;

As we know that

The Average rate of return = Net income ÷ Average investment

where,

Net income is

= (Selling price per unit - totat cost per unit) × additional units sales

= ($212 - $200) × $4,500 units

= $54,000

And, the average investment is

= (cost price + equipment) ÷ 2

= ($418,500 + $31,500) ÷ 2

= $225,000

So, the average rate of return is

= $54,000 ÷ $225,000 × 100

= 24%

4 0

3 years ago

Read 2 more answers

JCPenney Company is expected to pay a dividend in year 1 of $1.65, a dividend in year 2 of $1.97, and a dividend in year 3 of $2

arlik [135]

Answer:

c = $71.80.

Explanation:

So, from the question above, it is given that the dividend in the first year = $1.65, the dividend in the second year = $2.54, the dividend for the third year grows at the rate of 8% and the appropriate required return for the stock = 11%.

The first thing to do here is to determine the terminal value. The terminal value can be calculated as below as;

Terminal value = [ 2.54 × ( 1 + 8/100) ÷ (11/100 - 8/100) ] = 91.44

The value of the stock today can be calculate as be as:

The value of the stock today = 1.65 / (1 + 11/100 )¹ + 1.97 / (1 + 11/100)² + 2.54 / (1 + 11/100)³ + 91.44 / (1 + 11%)³ = $71.80.

Therefore, stock should be worth $71.80 today.

7 0

3 years ago

Railway Cabooses just paid its annual dividend of $3.10 per share. The company has been reducing the dividends by 10.9 percent e

Vlada [557]

Answer: Po = Do(1+g)/Ke-g

Po = $3.10(1-0.109)/0.13 - (-0.109)

Po = $3.10(0.891)/0.13+0.109

Po = $3.10(0.891)/0.239

Po = $11.56

Explanation: The current market price of the stock equals the current dividend paid multiplied by 1+g divided by the excess of cost of equity over growth rate. The growth rate is negative in this case, thus, the growth rate would be deducted from 1. Moreso, the growth rate will be added to cost of equity since it is negative. Thus, the amount that the investor will be willing to pay is $11.56.

7 0

3 years ago