Magazines and journals are examples of periodical resources. True False

Rachael’s Restaurant, a fast-food restaurant company, operates a chain of restaurants across the nation. Each restaurant employs

netineya [11]

Answer:

a. Advertising costs relative to the number of customers for a particular restaurant. [Fixed]

b. Rental costs relative to the number of restaurants. [Variable]

c. Cooks salaries at a particular location relative to the number of customers. [Fixed]

d. Cost of supplies (cups, plates, spoons, etc.) relative to the number of customers. [Variable]

e. Manager's compensation relative to the number of customers. [Mixed]

f. Servers' salaries relative to the number of restaurants. [Variable]

Explanation:

8 0

3 years ago

Would loaning a friend $10 to buy a movie ticket be an investment? Why or why not

Luden [163]

Answer:

no

Explanation:

An investment is an asset or item that is purchased with the hope that it will generate income or appreciate in the future.

3 0

2 years ago

A company has the opportunity to take over a redevelopment project in an industrial area of a city. No immediate investment is r

Ganezh [65]

Answer:

1-a. The are multiple IRRs stated as follows:

The first IRR value = 4.09%

Second IRR value = 31.82%

1-b. Rate of return = 7.58%

2. This is NOT a good investment because the NPV is negative.

Explanation:

Note: The estimated Net Cash Flow for the 4th year in the data is erroneously stated in the question as a positive value instead as a negative value since it is a cost.

The estimated net cash flows correctly before answering the question as follows:

Year End Net Cash Flow

1 $500,000

2 $300,000

3 $100,000

4 –$2,400,000

5 $150,000

6 $200,000

7 $250,000

8 $300,000

9 $350,000

10 $400,000

The explanation of the answers is now given as follows:

1-a. Tabulate the PW versus the interest rate and determine whether multiple IRRs exist.

Note: See Part 1-a of the attached excel file for the tabulation of the PW versus the interest rate.

From Part 1-a of the attached excel file, it can be observed that multiple IRRs exist. This is because there two IRRs stated as follows:

The first IRR value = 4.09%

Second IRR value = 31.82%

1-b. If so, use the ERR method when e 8% per year to determine a rate of return.

Note: See Part 1-a of the attached excel file for the calculation of total future value of income when e = 8% per year.

In the attached excel file, note that year 4 has a cost not income. Therefore,

From attached excel, we have:

Total Future Value of Income = $3,661,508.81

In the attached excel file, note that year 4 has a cost (not income) of $2,400,000. Therefore, it future value is not calculated. However, the present of the cost can be calculated as follows:

Present value of cost in year 4 = $2,400,000 / (100% + e)^4 = $2,400,000 / (100% + 8%)^4 = $1,764,071.65

The rate of return can now be calculated as follows:

Rate of return = ((Total Future Value of Income / Present value of cost in year 4)^(1/Number of period)) - 1 = (($3,661,508.81 / $1,764,071.65)^(1/10)) - 1 = 0.0758, or 7.58%

2. Use the PW method and a MARR of 18% to determine whether this is a good investment.

Note: See Part 2 of the attached excel file for the calculation of net present value (NPV).

From part 2 of the attached excel file, we have:

Net present value = –$21,043.15

Since the net present value is negative, this implies that this is NOT a good investment.

Download xlsx

5 0

2 years ago

When applied in marketing settings, the 80–20 Rule usually accurately suggests [approximately] 80% of profits emanate from (abou

svet-max [94.6K]

Answer:

The Pareto principle

Explanation:

The Pareto principle asserts that 80 percent of output will come from 20 percent of inputs. In different words, 80 percent of the results will come from 20 percent of the action. The Pareto principle is only an observation, not a law. The principle is applicable in business and almost all other disciplines.

In applying the Pareto principle, a business recognizes its best assets as uses efficiently to gain maximum value. The principle observes that similar amounts of input will yield different outputs. For business, results will never be evenly distributed, hence the need to identify and appreciate the minority inputs that will produce the majority of results.

6 0

3 years ago

One assumption that distinguishes short-run cost analysis from long-run cost analysis for a profit-maximizing firm is that in th

scoray [572]

A. The size of the factory is fixed.

We know there will always be costs of rent and etc when running a business so even in the short run there is fixed costs. The output is always variable depending on the number of workers. The number of workers is also not fixed, but the size of the factory is because you cant just get up and move your business over night, it costs money and is a lot of work.

8 0

3 years ago