Answer:
C) While the domestic airline industry is mostly free from excess capacity, the internet-enabled appliance industry will have new entrants.
Explanation:
While the domestic airline industry is in the maturity stage of the industry life cycle, the internet-enabled appliance industry is in its growth stage. Therefore the statement that can be inferred from the given data is that: while the domestic airline industry is mostly free from excess capacity, the internet-enabled appliance industry will have new entrants.
The major feature of the growth stage in the industry life cycle is market rivalry due to the fact that there is now acceptance of the product, <u>more new entrants join the industry and more intense competition results</u>
Answer:
b. $400,000
Explanation:
According to the historical cost principle, the land or fixed assets should be reported in the financial statement with the purchase price or historical price.
In the given situation, the land receiving value is $400,000 and its fair market value or FMV is $500,000 and exchange value is $300,000
So, here the land should be recorded at $400,000. Hence, we ignored the fair market value and the exchanged value
Answer:
27.85 years
Explanation:
In this question we use the NPER formula that is shown in the spreadsheet
Provided that
Present value = $767.50
Future value = $1,000
Rate of interest = 8.49% ÷ 2 = 4.25%
PMT = $1,000 × 6.3% ÷ 2 = $31.50
The formula is shown below:
= NPER(Rate;PMT;-PV;FV;type)
The present value come in negative
So, after solving this, the number of years is 55.71
But in this case, it would be
= 55.71 ÷ 2
= 27.85 years
Answer:
This is a very risky strategy for The HOT Dog.
Explanation:
Seeing as how they must keep the price continuously throughout the season, if Frankies' sets a low price, The HOT Dog will lose almost all of their business.
Answer:
The interest rate implicit in this agreement is 5%
Explanation:
A fix periodic payment made for a specific of time is known as annuity.
The 15 annual loan payment of $27,709 is an annuity payment and we will use the following formula to calculate the interest rate.
PV of annuity = P x annuity factor
Where
P = annual payments = $27,709
Placing values in the formula
$287,610 = $27,709 x annuity factor
Annuity factor = $287,610 / $27,709
Annuity factor = 10.37966
The annuity factor of 10.37966 for 15 years is for 5% interest rate.