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Natali5045456 [20]
4 years ago
5

Management Theories, Inc. at a cash price of $1.5 million. Management Theories, Inc. has short-term liabilities of $500,000. As

a result of acquiring Management Theories, Inc., Marketing Concepts, Inc. would acquire the copyrights to a national best-seller which would provide an estimated cash flow of $300,000 for the next five years. The firm has a cost of capital of 20 percent. The approximate net present value of this acquisition is
Business
1 answer:
Pavlova-9 [17]4 years ago
4 0

Answer:

$1,102,820

Explanation:

 The computation of the net present value is shown below:

= Present value of yearly cash inflows - initial investment

where,

Present value of yearly cash inflows is

= Annual year cash inflows × PVIFA factor

= $300,000 × 2.9906

= $897,180

And, the initial investment is

= $1,500,000 + $500,000

= $2,000,000

So the net present value is

= $897,180 - $2,000,000

= $1,102,820

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XARA is a newly emerging wine company. After extensive market research, XARA divides its market into wine enthusiasts, casual dr
PilotLPTM [1.2K]

Answer: segmentation

Explanation:

Market segmentation is when a business market that is made up of different customers is being divided, into smaller groups or segments based on some characteristics.

From the question, we are informed that XARA is a newly emerging wine company. After extensive market research, XARA divides its market into wine enthusiasts, casual drinkers and restaurants. Each category has its own needs, traits and marketing goals. In this scenario, XARA is using market segmentation.

4 0
3 years ago
Auto insurance is NOT what ?
Minchanka [31]

Answer:

The answer is c.

Explanation:

3 0
2 years ago
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MaltHanks Inc., a leading American firm, starts its operations in China. It incurs a lot of additional costs in comparison to th
asambeis [7]

Answer: Liability of foreignness

Explanation: In simple words, the extra cost incurred by a company operating in a foreign country as compared to the local companies over there is called the liability of foreignness.

In the given case, the American company incurred extra cost in china due to their lack of local knowledge and discrimination from the locals.

Thus, from the above we can conclude that Malt hanks faced liability of foreignness.

5 0
3 years ago
The balanced scorecard:
Deffense [45]

Answer:

Letter c is correct.<u> Is forward looking, stressing nonfinancial measures that can lead to benefits in the future.</u>

Explanation:

The balanced scorecard is a methodology whose focus is to assist the strategic management of a business, integrating managers and employees to work focused on obtaining long-term objectives and goals according to the company's current projects and results.

This methodology consists of actions focused on the business vision, so that there is an improvement in the management of long-term objectives, making the vision concrete through the monitoring and control of indicators to verify if the business plans are being fulfilled.

8 0
4 years ago
Melanie sets up her own business. her hair salon earns $10,000 in revenue a month. she spends $500 per month on supplies (shampo
ziro4ka [17]
Melanie's economic profit per month is computed as follows: $10,000 (revenue monthly) - $500 (supplies monthly) - $50 (monthly depreciation = $600 annually / 12 months in a year) = $9,450. 
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