Answer:
The answer is expectancy.
Explanation:
Expectancy theory is a concept developed by Victor H. Vroom in 1964, where he postulated, that the strength an individual has in terms of his or her motivation to do an action, would appear when three components are satisfied to a certain value: expectancy, instrumentality, and valence. The question above is relevant to the expectancy component, which is detailed as the belief that an individual has regarding their efforts would result in the individual choosing to perform an action. In the case of Martha, she wasn’t sure that her efforts in trying to win the contract would lead to her 10% raise (outcome, a component of instrumentality), and thus, she decided not to try.
Answer:
$215,000
Explanation:
Retained Earning is an equity account and its balance is credit in nature. It is the accumulated balance of all the prior year's income / losses after paying all the dividend. This balance can be used for the dividend payment or reinvestment in the business.
Any prior years adjustment in the revenue and expense will be recorded in the retained earning because it carry the accumulated profit all the prior years.
The premium on insurance for only one year should be recorded, but premium of 3 years is expense in 2020, from which there is an advance premium of 2 years.
Adjustment Value = $30,000 x 2/3 x (1-0.25) = $15,000
The adjustment should be added in the retained earning balance as it was expensed earlier.
Adjusted retained earning balance = $200,000 + $15,000 = $215,000
Answer:
d. the consumer price index will decrease, but the GDP deflator will not decrease.
Explanation:
If the price of Spanish olives imported into the United States decreases, then the consumer price index will decrease, but the Gross Domestic Products (GDP) deflator will not decrease.
The GDP price deflator also known as the implicit price deflator, measures the changes in the level of prices for all of the final goods and services produced domestically in an economy in a year.
The GDP deflator can be calculated by using the formula;
GDP deflator = (Nominal GDP/Real GDP) × 100.
Answer:
Explanation:
Cost of Capital 12%
Project X
Year 0 1 2 3 4
Cah flow (10000) 6500 3000 3000 1000
Discount Factor 12% 1 0.8929 0.7972 0.7118 0.6355
Present Value (10000) 5804 2392 2135 636
Net Present Value 2.85 years
Net Present Value 966
Discount Factor 10% 1 0.9091 0.8264 0.7513 0.6830
Present Value (10000) 5909 2479 2254 683
Net Present Value 1325
IRR = Lower rate + 
( higher rate - lower rate)
IRR = 0.10 + 
(0.12-0.10) = 17.38%
Project Y
Year 0 1 2 3 4
Cash flow (10000) 3000 3000 3000 3000
Discount Factor 1 0.8929 0.7972 0.7118 0.6355
Present Value (10000) 2679 2392 2135 1907
Payback Above 4 years
Net Present Value (888)
Discount Factor 10% 1 0.9091 0.8264 0.7513 0.6830
Present Value (10000) 2727 2479 2254 2049
Net Present Value (490)
IRR = Lower rate + ( higher rate - lower rate)
IRR = 0.10 + 
(0.12-0.10) = 7.54%
