<span>An interest bearing checking account pays interest while a savings account does not. A savings account are available whenever the owner would like them but an interest bearing checking account must be left alone until it hits maturity. Deposits made into a savings account are timed deposits while those made in an interest bearing checking account are technically demand deposits. The interest earned on a regular passbook savings account is taxable as income but the interest earned in an interest bearing checking account is tax deductible.</span>
A. Pure competition
Pure competition describes a market with a wide range of competing businesses all selling the same product, in this case milk.
Monopolies are a single company running the market, and oligopoly markets have a small number of players who together control the vast majority.
Answer:
1. NPV calculation
Option 1 ( with Greewood fertilizer) : $2.256
Option 2 ( with Peter's Fertilizer) : $3.835
2. Rate of return calculation:
Option 1: 45.12%
Option 2: 95.875%
Option 2 should be chosen as it provides higher NPV.
Explanation:
1. The detailed calculation for each option is:
Option 1: Present value of sales proceed - initial cost = (8/1.05^2) - 5 = $2.256
Option 2: Present value of sales proceed - initial cost = (10/1.05^5) - 4 = $3.835.
2. The detailed calculation for each option is:
Option 1: NPV/Initial cost = 2.256/5= 45.12%
Option 2: NPV/Initial cost =3.835/10 = 95.875%
To assess which option should be picked with the assumption of infinite time horizon, NPV should be key driver. As Option 2 has higher NPV, Option 2 is chosen.
Answer:
Product Mix
Explanation:
Product Mix is defined as the combination of products produced to increase the market share of the company and ultimately the profits for a company. The Procter and Gamble (P&G) Company produces many different products including deodorants, cookies, shampoo, cake mix, disposable diapers, laundry detergents, bar soaps and many other types of products to increase the market share of the company.
