Answer:
The IRR of this investment opportunity is 10%
The IRR rule says that you should not invest
Explanation:
To calculate the IRR of this investment opportunity we shall calculate the following:
Let the IRR be x.
Now , Present Value of Cash Outflows=Present Value of Cash Inflows
110,000 =121,000/(1.0x)
x= 10%
Hence, the IRR of this investment opportunity is 10%
Cost of Capital = 17%
The IRR rule says that one must not accept. This is because the IRR is lower than the cost of capital.
Hence you should not invest
Answer:
d. industry newcomers use introductory low prices to attract buyers and build a customer base
Explanation:
Competitive strategy of a low-cost provider seeks to create prices that are low so that competitors can not meet or exceed consumer savings for good or service of the same quality. A competitive strategy to be the low-cost provider in an industry works well when:
Industry newcomers use introductory low prices to attract buyers and build a customer base
When buyers incur low costs in switching their purchase from one seller or brand to another or when commodity based products prevails and minimal differential exists
Answer:
True
Explanation:
Based on the information given we were told that Martha does not recognize gain or loss on the distribution and takes a:
Basis in the cash of $40,000 which is TRUE because we were told that MMM distributes $40,000 cash to Martha
Basis in the receivables of $10,000 which is TRUE because we were told that she has an outside basis of $50,000 with distributed cash of $40,000 and accrual-basis accounts receivable of $20,000. Therefore the basis in the receivable of $10,000 is calculated as:
Cash $40,000 + Account receivable $20,000=$60,000
Hence,
$60,000- Outside basis $50,000
=$10,000 Basis in the receivable
<u>A. </u><u>Planning</u> is setting objectives and identifying methods to achieve those objectives.
<h3>How is planning linked to decision-making?</h3>
Planning occurs when future activities are considered in light of an entity's goals.
At the planning stage, the available and required resources are explored. It is the bedrock of management actions.
The purpose of planning is to arrive at the best decisions, which have factored into consideration all aspects of a project.
Thus, planning is intrinsically linked to decision-making because it aids decisions.
Learn more about planning at brainly.com/question/25453419
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<h3>Question Completion:</h3>
A. planning.
B. controlling.
C. performance evaluation.
d. decision-making.