1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Maksim231197 [3]
3 years ago
6

Carfax offers a report on used cars for $39.99. It details the ownership type and history, vehicle mileage, accident reports, an

d other information. Carfax is an example of how markets try to:
Business
1 answer:
Marysya12 [62]3 years ago
3 0

Answer:

lessen the lemons problem by reducing asymmetric information.

Explanation:

Since in the question it is mentioned that the Carfax offered a report on a cars that are used for $39.99. The information involves type of ownership, history, vehicle mileage, accident reports, and other type of information

Based on the above information, the markets lowered the lemon problem i.e. asymmetric information that represents the failure of information

You might be interested in
The Stanton Stationery Shoppe wants to acquire The Carlysle Card Gallery for $450,000. Stanton expects the merger to provide inc
ra1l [238]

Question:

The Stanton Stationery Shoppe wants to acquire The Carlysle Card Gallery for $450,000. Stanton expects the merger to provide incremental earnings of about $70,000 a year for 10 years. Carol Stanton has calculated the marginal cost of capital for this investment to be 8%. Conduct a capital budgeting analysis to determine whether she should purchase The Carlysle Card Gallery.

Answer:

Capital Budgeting Analysis is a process of evaluating how we invest in capital assets; i.e. assets that provide cash flow benefits for more than one year.

An organization has to take many decisions regarding the expansion of business and investment. To do that, they will require the help of NPV method and base its decision on the same.

Net present value is used in Capital budgeting to analyze the profitability of a project or investment. It is calculated by taking the difference between the present value of cash inflows and present value of cash outflows over a period of time.

As the name suggests, net present value is nothing but net off of the present value of cash inflows and outflows by discounting the flows at a specified rate.

From the question the following are given:

  1. Capital Expenditure = $450,000
  2. Useful life of expenditure = 10 years
  3. Annual return from expenditure = $70,000
  4. Marginal cost of Capital = 8%

Step 1:                                  

It's formula is given as:

Formula for NPV

NPV = (Cash flows)/( 1+r)i

<em>Where</em>

i- Initial Investment

Cash flows= Cash flows in the time period

r  = Discount rate

i = time period

Computing with a spreadsheet, the Net Present Value of the Investment is given at $ 19,706.

Kindly see attached spreadsheet.

Judgement: Since the NPV is positive the investment is profitable and hence Nice Ltd can go ahead with the expansion.

Cheers!

7 0
3 years ago
Customer response time is: A. the time taken for value to be placed on a company's products by customers. B. the time taken for
Whitepunk [10]

There are ways to treat a customer. Customer response time is the time taken for a good to be delivered or a service to be performed.

<h3>What is Customer response time?</h3>

Customer response time is known to be the timeframe or period between the placement of a said order and the date of the delivery goods or services.

It is also known as the time between when a customer is said to makes a certain inquiry about a specific product or make a purchase of good or service and when it is said to be received by the customer.

Learn more about  Customer from

brainly.com/question/26313265

4 0
2 years ago
Sanders Inc. claims that it only uses organic cleaning products in its janitorial services. In reality, the company buys whateve
labwork [276]

Sanders Inc. claims that it only uses organic cleaning products in its janitorial services. In reality, the company buys whatever is cheapest in bulk. This is an example of greenwashing.

Greenwashing is the system of conveying a false impression or supplying deceptive facts approximately how an agency's products are more environmentally sound. Greenwashing is taken into consideration by an unsubstantiated claim to lie to purchasers into believing that a agency's merchandise is environmentally friendly.

Greenwashing additionally called "green sheen", is a form of advertising and marketing spin wherein green PR and green advertising is deceptively used to influence the general public that an agency's merchandise, ambitions, and rules are environmentally friendly.

A traditional instance of greenwashing is when Volkswagen admitted to dishonest emissions tests by becoming diverse cars with a “defect” tool, with a software program that might discover whilst it changed into undergoing an emissions test and altering the overall performance to reduce the emissions degree.

Learn more about greenwashing here brainly.com/question/21992794

#SPJ4

6 0
2 years ago
Multiple copies of the purchase order are prepared for recordkeeping and distribution with a copy of the purchase order sent to
drek231 [11]

Answer:

B. Accounts Payable, Receiving and Inventory Control Department

Explanation:

First, the Multiple Choices

A. Accounts Payable, Receiving, and Stores Control Departments.

B. Accounts Payable, Receiving, and Inventory Control Departments.

C. Accounts Payable, Accounts Receivable, and Receiving Departments.

D. Accounts Payable, Receiving, and Production Planning Departments.

Accounts Payable

The organisation is making a purchase, hence, there will be financial implications and payments that need to be made for the purchase. Therefore Accounts payable is involved

Receiving

The department for receiving the order from the vendor is also crucial, the responsibility of this department is to ensure that all that was ordered and paid for on the purchase order sent to the vendor were delivered. The receiving department will also ensure that there are no defects in the supplied materials.

Inventory Control

Inventory Control is crucial as the department is responsible for ensuring that the optimal level of inventory is supplied and kept per time. The inventory control department should get a copy of the purchase order, compare with available inventory and see the incoming order is adequate for the optimal inventory size for the organisation.

Departments not Involved

Stores Control Department in option A is not involved because stores control takes care of the store in general while inventory control ensures that optimal stock level is maintained.

Accounts Receivable in option C is not involved because money is not coming in

Production Planning in option D is not involved because the company is not planning to produce, it is purchasing.

5 0
3 years ago
How do i become gay<br> i dont know how but i must become gay
Llana [10]
Just do what you please ‍♀️
7 0
3 years ago
Read 2 more answers
Other questions:
  • ______ studies reveal that visionary and inspirational charismatic leaders who are good team builders generally are most effect
    12·1 answer
  • what are the building blocks of a personality select all that apply A. emotional qualities B, ethnic identity
    11·1 answer
  • Harold, a financial accountant at an automobile company, is asked to calculate the net income of the company for a given period.
    13·1 answer
  • Auto company engineers want technical terms such as limited slip differential used in car ads. ad execs, on the other hand, don'
    10·1 answer
  • If the firm is hiring workers under purely competitive conditions at a wage rate of $22, it will employ:a.2 workers.b.3 workers.
    13·1 answer
  • Savings accounts and investment accounts are different in that savings accounts
    8·1 answer
  • Preston never opened his bank statements, so he was surprised to see that he had incurred a service charge, because his balance
    6·1 answer
  • In this problem we will consider the effect of the interest rate on loan payments. Zoe has saved enough for the down payment on
    7·1 answer
  • It is extremely important for a researcher to clearly define the variables in a study because this helps to determine the type o
    9·1 answer
  • In today’s world, the possibility of attack by outside agencies has ___________ dramatically.
    6·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!