Answer:
A U.S.-based MNC has just established a subsidiary in Algeria. Shortly after the plant was built, the MNC determines that its exchange rate forecasts, which had previously indicated a slight appreciation in the Algerian dinar, were probably false. Instead of a slight appreciation, the MNC now expects that the dinar will depreciate substantially due to political turmoil in Algeria. This new development would likely cause the MNC to reduce its estimate of the previously computed net present value.
Explanation:
The difference between the present value of cash inflows and the present value of cash outflows over a period is referred to as the net present value (NPV).
NPV is used In capital budgeting and investment planning, NPV is used to analyze the profitability of a projected investment or project.
The company should therefore reduce the estimates because it will increase the discount rate which would, in turn, impact the net present value (NPV) and drag it down to lower value.
Answer:
Reverse the related expense.
Explanation:
In this scenario Muller has already realised the compensation expense for achievement of the particular target. In accrual accounting only the expenses that we have already incurred or are certainly going to incur will be recognised and recorded.
Muller has concluded that the executive will not meet the target and therefore will not the eligible for the compensation. Muller should reverse the related expense as it is unlikely it will incur it.
Answer:
Monopoly
Explanation:
What is Monopoly?
A market structure in which there is only one supplier of a product.
Answer:
The parameter of its budgets.
Explanation:
Parameter of the budget will determine the amount of fund that are available for the marketing campagin. This will put a limit on the type of plan that the marketing team can execute. It would be a waste of time if you spent a lot of effort and work hours to create an excellent plan but do not have the money to turn that plan into reality
As the budget goes higher, the limitation for their strategy goes lower. This is why analyzing the parameter of the budget should come first.
