Answer with Explanation:
The introducing of newest technology would definitely have financial and operational implications. These implications are given as under:
Financial implications
- Cost Reduction: The operational costs would be reduced by investing in the newest technology which will make the cash flow position better with time.
- Benefits Lost Risk: It is possible that the investment might not bring value to the company because of any emergent problems, whose mitigation requires incurring of additional costs.
- Cost Advantage: The lower operational cost can drive higher sales because the company will be charging lower fare prices to its customer thus giving Cost Advantage.
- Investing in newest technology might not bring value to the company because it is not attracting potential customers but it might pay off later in the form of developed customer loyalty.
Operational implications
- Implementing a newest technology might improve the operational processes through which the customer go through, which would increase the customer satisfaction.
- Implementation problems of newest technology.
- Long term Customer retention will easy for the airline company due increased customer satisfaction.
- Operational efficiencies related to services will process the customer fastly saving the companies precious time wasted in these process thus reducing the future human resource cost.
- Using robots might bring adverse marketing because the people might think that the human resource are no more required and risks associated with the acceptance of technology due to cultural differences.
- Better Security systems would increase the security level and safety levels for the customers.
Assume a project has normal cash flows. According to the accept/reject rules, the project should be accepted if the: IRR exceeds the required return.
Internal rate of return (IRR) is a metric used in financial analysis to estimate the potential profitability of an investment. The IRR is the discount rate that drives the net present value (NPV) of all cash flows to zero in discounted cash flow analysts. This suggests that an expected angel investment IRR of at least 22% is considered a good IRR. The higher
the project's projected IRR and the higher the amount above its cost of capital, the more net cash the project brings to the firm. So in this case the project appears to be profitable and management should go ahead with it.
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Answer:
The answer is B. Increasing
Explanation:
An increasing-cost industry is an industry whose costs for production increase as more companies compete.
Why is this so? - This is because each new company in the industry increases its demand for supplies and factors needed for production.
A decreasing‐cost industry is one where costs of production reduces as the industry expands.
Answer:
Both types of inflation cause an increase in the overall price level within an economy. Demand-pull inflation occurs when aggregate demand for goods and services in an economy rises more rapidly than an economy's productive capacity.
Explanation:
Solution :
1.
The income from renting his showroom that Paolo would receive if he allowed to rent his showroom is a Implicit cost as this is a cost which will not be paid in actual.
The wages as well as the utility bills paid by Paolo is an example of explicit cost as this cost would be paid in actual for the businesses and are added in accounting.
The wholesale amount that Paolo pays for the pianos to the manufacturer is an explicit cost and is aid in actual to the manufacturer.
The salary that Paolo could have earned if he choses to be an accountant will be an implicit cost as this cost is not paid in actual.
2. Paolo's accounting profit can be calculated by :
Accounting profit = revenue - explicit cost
= 851,000 - 476,000 - 281,000
= $ 94,000
3. Paolo's economic profit is :
Economic profit = accounting profit - implicit profit
= 94,000 - 34,000 - 71,000
= -11,000
