B the quality is the most important when considering buying an item. Then you think of quantity.
Answer:
Consider the following analysis.
Explanation:
A capital budgeting decision for Southwest airline should consider the following aspects: -
Assessment of the cash flows gained on investment into the Cuba market adjusted for time value of money. This evaluation of profitability, assessment of demand in Cuba, assessment of investment per traffic unit in Cuba forms an integral part of the investment decision. Major methods to evaluate profitability are NPV (Net Present Value) and IRR (Internal rate of Return). The NPV method calculates the difference in the initial investment and present value of cash flows over the period of the project. IRR method considers the discount rate at which NPV of project cash flows is zero. A project with positive NPV and higher IRR is considered.
The proposed investment should ensure that the interests of all stakeholders are safeguarded i.e Creation of Value proposition for shareholders as well as ensuring timely repayments to existing lenders of the project
.
Raising of capital for the Cuba project considering the company’s existing policies on debt and equity and cost benefit analysis. An equity funding would be costlier alternative than debt funding. However, a debt funding may increase the risk of lowered post tax profits and decreased returns to the shareholders, while an equity funding would allow the company an option in deferring the distribution of the profits or part-distribution of profits to the shareholder by deciding on the dividend payout ratio.
Management of aircrafts and other major assets of the company – The company should ensure that the existing aircrafts are effectively utilized for providing the airline services in Cuba. Acquisition of additional aircrafts along with other assets (warehousing facility for repairs etc.) should also be taken into consideration.
An adequate working capital management ensuring smooth day to day operations should be undertaken. This includes management and allocation of funds for day to day operations like fuel expenses, airport operating charges, repair and maintenance of aircrafts etc.
Answer:
Role of Money in Each Part of the Story:
1. Tim can easily determine that the price of the computer is more than the price of the vacation = Unit of Account
2. Tim has $1,537 in his checking account = Store of value
3. Tim writes a check for $1,299= Medium of Exchange
Explanation:
Money is countable and can be used to value exchanges and calculate profits and losses, income and expenses, and debts and wealth. It can also be stored currently, retrieved at a later date, and exchanged for value in the future without significant loss of value. Money facilitates transactions between parties.
Answer:
A favorable balance of trade; occurs when the value of a country's exports exceeds that of its imports. An unfavorable balance of trade; occurs when the value of a country's imports exceeds that of its exports.
Explanation: