Answer: Third
Explanation:
Diminishing returns to labor refers to the phenomenon where every additional worker leads to an increase in production at a decreasing rate.
Using the scenario described, when there was only one employee the company could mow 4 lawns a day. They added a 2nd worker and that figure went to 9 lawns a day which is an increase of FIVE.
When they added a 3rd worker, the figure again went up but only to 12 which is an increase of THREE only as opposed to the last increase of FIVE.
After the third worker therefore, there was an increase but at a smaller rate.
Answer:
Bramble free cash flow was $508,000
Explanation:
Cash provided by operations = $778,000
Cash used in investing = $672,000
Cash used in financing = $186,000
Cash spent on fixed assets during the period = $270,000
Average current liabilities = $637,000
Average total liabilities = $1,682,000
Free cash flow = Cash flow from operating activities - Capital expenditures
= $778,000 - $270,000
= $508,000
Answer:
NPV =$ 60,311.80
Explanation:
<em>The net present value (NPV) of a project is the present value of cash inflow less the present value of cash outflow of the project.</em>
NPV = PV of cash inflow - PV of cash outflow
We can set out the cash flows of the project using the table below:
0 1 2 3
Operating cash flow 136,000 136,000 136,000
Initial cost (274,000)
Working capital (61,000 ) 61,000
Salvage value <u> </u> <u> </u> <u> </u> 1<u>5000 </u>
Net cashflow <u> (335,000) 136,000 136,000 212,000.</u>
PV inflow= (136000)× (1.1)^(-1) + (136,000× (1.1)^(-2) + (112,000)× (1.1)^(-3)
= 395,311.80
NPV =395,311.80 -335,000
=$ 60,311.80
Answer:
Diversification
Explanation:
The key words here are 'several businesses'. A company engage in many businesses in order to mitigate or reduce its business risk, and also to create and add more value to customers. This offers a far advantage position than a stand alone entities who deal with only one product or service.
Answer:
The correct answer is C
Explanation:
Word of mouth is defined as the advertisers and marketers who seek to establish or create something worth talking regarding and then actively encourage the people to talk regarding it.
Organic word of mouth (termed as Organic WOM), is defined as the word of mouth that naturally happen, when the person become himself the advocate as they are happy with the product and have a desire to share the support.
So, in this case, the beth who searching fro lotion tries few brands, but when she finally finds the product or lotion which suits her skin. She tells her close friends regarding it. Therefore, it is an example of Organic Word of Mouth.
