Answer:
The rate of return expected on this project by Cold Goose Metal Works Inc. is 15.20%
Explanation:
Since flotation cost is 4% that implies that $500,000 is actually 96% (100%-4%) of the cash proceeds from the capital funding,hence funds raised is computed thus:
funds raised=$500,000/0.96=$520,833.33
Annual return on investment=cash inflow-initial cash outflow
cash inflow is $600,000
cash outflow is $520,833.33
annual return on investment=$600,000-$520,833.33=$79166.67
rate of return on project=annual return on investment/initial investment
=$79,166.67
/$520,833.33*100=15.20%
The rate of return that Cold Goose Metal Works Inc is 15.20%
Answer:
B. The lessor does not have the right to stop delivery in transit due to the lessee's breach of the lease agreement; instead, the lessor must deliver the goods to the lessee in spite of the breach, and then sue the lessee for damages.
Explanation:
During the transit of goods, if the lessor learns of a breach of the lease agreement, he has every right to stop the delivery of the goods in transit by notifying the goods carrier or bailee. Since the carrier of the goods reports directly to the lessor, once he receives instructions from the lessor to stop delivery of goods, and he still has sufficient time, the delivery should be stopped.
Once the goods are reclaimed, the lessor can then decide to sue to recover damages. He can also, decide to cancel the contract at that point
Answer:
Actually they would do the vice versa
Answer:
Answer is option D, i.e. Firms engage in "dumping" practices, particularly when foreign firms market to US customers.
Explanation:
Predatory pricing is a kind of pricing strategy that is used to drive out the newly entered competitor out of the market. The strategy uses lowering the price of the product into a very cheap product that grasps the attention of the customers and tempts them to buy from that very brand instead of the new entry. This is sometimes referred to as “dumping” strategy.
Answer:
Risk avoidance
Explanation:
Risk avoidance is a threat management strategy. The strategy involves making adjustments to the original project plans so that the risk triggering events are eliminated. Although the strategy may not work in all projects, it is the most effective way of preventing risks.
Risk avoidance does not mean abandoning projects that have risks. It entails a deliberate and well-thought approach to reduce vulnerabilities that pose a threat to the project.
