Answer:
a. 1.096
Explanation:
The present value index is the same as the profitablility index(PI), which is computed by dividing the present value of future cash inflows by the initial investment(the present value of cash outflows). A profitability of above 1 means that the project is viable as the numerator(PV of cash inflows) exceeds the denominator( initial cash outlay).
Project A PI index= Present value of cash inflows/Present value of cash outflows
Project A PI index= $84,360/$77,000
Project A PI index= 1.096
Answer:
sell bonds, increase discount rates and increase reserve requirements
Explanation:
The Federal Reserve’s three instruments of monetary policy are open market operations, the discount rate and reserve requirements ( Sometimes discount rate management is divided as discount and interest rate) .
Open market operations involve the buying and selling of government securities. The term “open market” means that the Fed doesn’t decide on its own which securities dealers it will do business with on a particular day. Rather, the choice emerges from an “open market” in which the various securities dealers that the Fed does business with – the primary dealers – compete on the basis of price. Open market operations are flexible, and thus, the most frequently used tool of monetary policy.
The discount rate is the interest rate charged by Federal Reserve Banks to depository institutions on short-term loans.
Reserve requirements are the portions of deposits that banks must maintain either in their vaults or on deposit at a Federal Reserve Bank.
Answer:
The correct option here is A) Days sales outstanding + Days inventory outstanding - Days payable outstanding.
Explanation:
Cash conversion cycle which is also termed as Net operating cycle or Cash cycle, this cycle tells us about how much time it is going to take for an organization to converts the amount of investment it has made in the inventory and various other resources to cash , which will be generated by sales.
Formula used for calculation =
AMOUNT OF SALES OUTSTANDING IN DAYS
+
AMOUNT OF INVENTORY OUTSTANDING IN DAYS
+
AMOUNT OF PAYABLE OUTSTANDING IN DAYS
Answer:
It may turn off it's current customer base and cause them to purchase a competitors ice cream.
Explanation:
Market penetration strategy is the process of selling current products to an already existing market so as to obtain a higher market share by taking the market shares from the other competing companies.
Market penetration strategy uses low prices to generate demand for a product and increase market share. Bud's bucket ice cream decides to penetrate the gourmet market by offering its same ice cream at high prices instead of reducing the price, this might lead to a reduction in their current customer base.
