Answer:B. If the payback period is less than the maximum acceptable payback period, accept the project.
Explanation:
The payback period measures if a capital investment is profitable.
The payback period measures how long it takes to recover the amount invested in a capital project. It calculates how long it takes for the cash flows generated from a capital project to be equal to the cost.
For example if a project costs $10,000. It cash flows in year 1,2,3 and 4 are $5000, $3000, $2000, $6000. The payback period is 3 years. If the company has a maximum acceptable payback period of 2 years, then the company won't take on the project because its payback period is more than the maximum acceptable payback period.
If the company has a maximum acceptable payback period of 4 years, then the company would take on the project because its payback period is less than the maximum acceptable payback period.
Answer:
D. Absolute advantage
Explanation:
Absolute Advantage is the ability for a country or organization or individual to produce a greater amount of a specific commodity than their competitors while using the same amount of resources. Adam Smith argued for this in international trade theories when he postulated that each country should specialize on those commodities it can produce at lower absolute cost than others.
When a country is best at producing a particular type of good more efficiently both in cost and quantity than its competitors, they are said to have absolute advantage in the production of that good. In this case, the United States had absolute advantage in producing oil drilling equipment.
Answer:
A. Use the most recent year EBIT number plus or minus the impact of recommendations to determine a range
Explanation:
In performing EPS/EBIT analysis, the first row (EBIT) is determined by "Using the most recent year EBIT number plus or minus the impact of recommendations to determine a range."
EBIT which stands for Earnings before interest and taxes is used to determine the operating earnings, profits, or profits before the application of taxes and interests.
Hence, it is measured by removing expenses from revenue before roving taxes and interests.
Answer:
When the economy grows and all other things remain constant, we can produce more, so this will cause a shift in the production possibilities curve outward, or to the right.
Answer:
<em>Who is the principal?
</em>
<u><em>Mario Sclafani</em></u>
<em>Who is the agent?
</em>
<em><u>The office worker</u></em>
Explanation:
Sclafani is a disclosed administrator. <em>Principals are responsible for agreements entered into by an agent when the principal approved the contract.</em>
Whenever a third party, Felix in this scenario, signs a contract with a disclosed source, Sclafani in this case, who is responsible for the contract.