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zubka84 [21]
3 years ago
12

Borghia Pharmaceuticals has $1 million allocated for capital expenditures. a. Which of the following projects should the company

accept to stay within the $1 million budget? b. How much does the budget limit cost the company in terms of its market value? The opportunity cost of capital for each project is 11%. Borghia Pharmaceuticals Investment NPV IRRProject ($ Thousands) ($ Thousands) (%)1 300 66 17.22 200 -4 10.73 250 43 16.64 100 14 12.15 100 7 11.86 350 63 187 400 48 13.5
Business
1 answer:
balu736 [363]3 years ago
4 0

Answer:

Please refer below the answer in detail

Explanation:

a)

With a limited budget, the firm will first pursue projects with the highest return, and the allocate the remaining capital to the project with the second highest return, and so on until all capital is fully allocated. Based on the information, Project 6 has the highest return, followed by 1 and 3. These three projects together will cost:

350,000 + 300,000 + 250,000 = $900,000

After those three projects, the firm will have $100,000 left. The best out of remaining project is 7, but it costs 400,000, which the firm cannot afford. The best affordable project is 4, which offers a return of 12.1%. Hence, the firm should spend the remaining 100,000 on project 4.

b)

The budget limit constraints the firm to give up project 7, which offers a NPV of $48,000. The firm is forced to choose project 4, which has a NPV of $14,000.

Thus the lost in market value of the firm = 48,000 - 14,000 = $34,000.

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How much would $20,000 due in 50 years be worth today if the discount rate were 7.5%?
Eduardwww [97]

Answer:

$537.78

Explanation:

In order to find the present value of a future payment we discount it using a discount rate. The formula for that is

Present value = Future value/(1+Rate)^Number of years.

In this case we know the future value is $20,000, the discount rate is 7.5% and the number of years are 50, so we just input these numbers in the formula to find the present value or worth today.

Present value = 20,000/(1+0.075)^50

=537.78

$20,000 due in 50 years would be worth $537.78 today if discounted by 7.5%

6 0
3 years ago
when rival firms compete aggressively by trying to attract competitors' customers, this might be an indication of:
Kryger [21]

Answer:

Slow industry growth

Explanation:

Slow industry growth is the growth that shows the industry at a slow rate or no growth is there.

It could arise when the consumer does not opt for a high demand

In the given situation, it is mentioned that when competitive firms aggressively trying to attract the customers of competitors so this is an indication of the slow economic growth and hence, the same is to be considered

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3 years ago
Misleading advertising material created to look like regular news stories or social media is known as _____
Andrei [34K]

Answer:

B. Native advertising

Explanation:

A company wants to measure the share of customer as it is the indicator of brand preference, customer loyalty, and customer lifetime value.  

Companies should open themselves to criticism by being active on social media because rather than taking it as negative, companies can take it as an opportunity to analyze and evaluate their performance.

No, it is not ethical to observe shoppers for market research without their knowledge and permission.

 

Step-by-step explanation

Native advertising refers to the kind of advertisement in which the content exactly matches the platform on which it appears and displayed. Sometimes it appears in the form of editorial content which is referred to as advertorial, video or article. These kinds of ads make it difficult for consumers to understand the right content as it blends the correct content into the content of the platform. In native advertising, misleading content is created to look like regular stories by using ambiguous terms like sponsored or branded.  

 

The unified data layer refers to when an organization merges its complex and fragmented data into one central view. It provides a clearer and complete picture of the firm's data. Marketing analytics strives to establish a unified data layer so that all data is kept in a centralized place.  

 

Share of customer is defined as the part of the customer's purchasing that the company gets. In other words, it indicates how much a customer is spending on a company's product or service. A company wants to measure the share of customer because:

It is the indicator of brand preference that companies can use to evaluate their products and services.

It shows how loyal a customer is towards the company.  

It indicates how quickly a product or service gains popularity and acceptance in the market.

It indicated an organization's customer lifetime value.  

 

Companies should open themselves to criticism by being active on social media because rather than taking it as negative, companies can take it as an opportunity to analyze and evaluate their performance. Following are the ways by which companies can appreciate criticism on social media and take benefit from it:

Turn a negative comment into a positive one.

Allow people to criticize.

Thank the people who criticize

Learn and improve from the criticism

 

No, it is not ethical to observe shoppers for market research without their knowledge and permission. It is an act of deception that means to mislead someone or hide the truth for personal gain or advantage. In market research, deceiving someone is dishonesty on the part of the researcher as the shopper feels uninformed about the research.

8 0
3 years ago
Read 2 more answers
Most resources are nonrenewable, and wants and needs are limited. This is an example of?
dimulka [17.4K]

Answer:

scarcity.

Explanation:

Scarcity can be defined as an economical problem that gives the relationship between non-renewable (limited) resources and the limitless wants and needs of consumers.

Basically, it's very important that producers of goods and services make decisions that would help them on how to efficiently allocate scarce or limited resources, in order to meet the unending requirements, wants and needs of consumers.

In Economics, an example of scarcity is that most of the resources used for the manufacturing of finished goods and services are nonrenewable, and as a result, the wants and needs of the end users or consumers are limited. Thus, economists would advise that economies should decide on what to produce, how to produce, when to produce and for whom to produce due to the finite and limited nature of resources i.e the concept of scarcity.

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According to the BRANDZ model of brand strength, brand building involves people progressing through a sequential series of steps
Rasek [7]

Answer:

<u>A) Presence</u>

Explanation:

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The BRANDZ MODEL developed by Millward Brown and WPP looked at how brand building connects with customer issues.

By knowing how long a product brand has been in existence people can the question what do I know about it?

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