Answer:
Samuelson Electronics should accept Project A because according to the payback decision rule, the project with the shortest payback period should always be chosen over the project with the longer payback period, since a longer payback period means more risk.
B. Are following too closely.
The general rule is a 3 second "following distance" between cars to make sure you have time to brake or avoid a crash if the car in front of you slams on the breaks.
Answer:
a. with the deadline
Explanation:
When a project has a fixed budget, it cannot move its expenditure as that shall be fixed, for fixed as well as variable cost, in total no increase in expenditure.
In no terms the project will be successful if it does not meet the quality, thus the quality standards shall not be adjusted.
The risks associated with the project can not be altered.
The goals of business shall not be altered for small projects as generally the goals are long term in nature.
Therefore, correct option is
a. with the deadline
As the deadline can be altered or revised a little to meet the expectations.
Answer:
c) 11%
Explanation:
The question is to determine the rate of return on Groupong Inc's
The rate of return represents an investment's net gain or net loss calculated over a period of time and usually expressed in terms of the percentage of the initial cost of investment.
The rate of return in this question is calculated as follows:
Rate of Return = (The Dividend for the next year/ the current price of the share) + The Growth rate
The dividend for the next year = current year dividend x (1+r), where r is 3.5
= 2.78 x (1+0.035)
=2.78 x 1.035
= (2.8773/38.3) + 0.035
=0.1101 or 11%