Answer:
<u>Predatory</u>.
Explanation:
This predatory pricing strategy is used when a company aims to create entry barriers for new competitors, significantly lower the price to gain new customers and drive competitors away. The cons of this strategy is that in addition to being illegal, lost revenue is not always recovered, and there are other factors that drive competitors away, not just price.
Answer: Present value of the cash flows of the company is $1,158,824.
Explanation: Philips industries have the cash flow for $197,000. The industry needs to find the present value of the cash flow and the cash flows growth is decreasing every year by 6%.
The present value of the cash flows for perpetuity with decreasing growth rate is:
where, Cash flow for the year 1 (C1) = $197,000
Discount rate (r) = 11%
Growth rate (g) = -6%
![Present value of the cash flows (PV) = $197000/[0.11 - (-0.060)]](https://tex.z-dn.net/?f=%20Present%20value%20of%20the%20cash%20flows%20%28PV%29%20%3D%20%24197000%2F%5B0.11%20-%20%28-0.060%29%5D%20)
Present value of the cash flows (PV) = $1,158,824
Therefore the present value of the cash flows of the company is $1,158,824.
Answer:
The correct answer is option D.
Explanation:
An interest rate is an amount charged by a lender on the use of assets. It is expressed as a percentage of the principal. The interest rate is the return on lending for a lender and the cost of borrowing for the borrower.
Interest is typically paid on a loan to compensate for the opportunity cost of lending money. A lender could invest the money instead of lending and get a higher return from it.
To compensate for not using the money for an alternative purpose or for temporarily making do without the money that was lent, the borrower pays a certain percentage of principal to the lender.
Answer:
the picture attached is the main question while the solution is given in the explanation box below
Explanation:
a)
2017 = Loss = 25000 * 8 * [0.42-0.50] = 16000
2018 = Gain = 25000 * 8 * [0.50-0.43] = 14000
b)
2017 = gain = 25000 * 8 * [0.48-0.42] = 12000
c)
2017 = Loss = 25000 * 8 * [0.48 - 0.50] = 4000
2018 = Gain = 25000 * 8 * [0.50-0.43] = 14000
Answer: $1,700
Explanation:
The expected winning bid is the weighted average of the 2 different bids.
Half of the bids are for $1,500 so weight of $1,500 is 0.5.
Half of the bids are for $1,900 so weight of $1,900 is 0.5.
Expected Winning bid = (1,500 * 0.5) + ( 1,900 * 0.5)
= 750 + 950
= $1,700
