Answer:
C. The business could not use the money it spends on the new
branch for something else.
Answer:
The correct answer is: tolerance of uncertainty.
Explanation:
Even if the market for precious metals is facing a decline due to recession, Priscilla mortgaged her house so she can continue investing in her precious metals business. This decision reflects Priscilla's tolerance of uncertainty that comes to the surface when it is not confirm what the course of an event will be because the factors that determine the course are too ambiguous or even unknown. The adverse situation does not discourage Priscilla and she is being tolerant enough to decide to keep her business up and running.
Answer:
The correct option is B
Residual income = ($9000)
Explanation:
<em>Residual Income is measure of how much a division or a part of a business is able to generate over and above the company-wide opportunity cost of capital.</em>
A division with a controllable over and margin over and above the cost of fund is evaluated to be profitable .
Residual income = Controllable margin - (cost of capital(%)× operating assets)
Cost of capital = Target ROI
Residual income for Division X
= 36,000 - (15%× 300,000 )
= ($9000)
Answer:
P = $1790.01
Explanation:
Given data:
Borrowed money = $11,000
Number of installment = 10
Annual rate of interest = 10%
P = $627.45
PV of annuity is given as:
![PV of annuity = P*[\frac{(1-(1+r)^{-n})}{ r}]](https://tex.z-dn.net/?f=PV%20of%20annuity%20%3D%20P%2A%5B%5Cfrac%7B%281-%281%2Br%29%5E%7B-n%7D%29%7D%7B%20r%7D%5D)
P - Periodic payment
r - rate per period
n - number of periods
![11,000 = P*[\frac{(1-(1+0.1)^{-10})}{0.1}]](https://tex.z-dn.net/?f=11%2C000%20%3D%20P%2A%5B%5Cfrac%7B%281-%281%2B0.1%29%5E%7B-10%7D%29%7D%7B0.1%7D%5D)
P = $1790.01
