Answer:
The correct answer is C)
Explanation:
Whether or not companies in the industry expanded their capacity is really not of much concern. What should concern management are the other factors:
- Forecasted Demand Vs Actual Demand: This tells us what has happened in the market
- Forecasted Growth in Demand: This tells us what might happen in the market
- Industry-wide capacity to meet demand is critical information: This tell us what other companies are doing and how it is shaping the market. That is, is the market saturated or not.
- If beginning inventories are very high, in each of the regions reported, installing additional production capacity is not a very sound business decision.
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True
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Answer:
The Future value of annuity due of $800 per year at 12% for 5 years is $5,692.15
Explanation:
Annuity payment = P = $800 per year
Number of years = n = 5 years
Interest rate = r = 12% = 0.12
Use following formula to calulate the Future value of Annuity due.
Future value of annuity = ( 1+r) x P [((1+r)^n - 1) / r]
Future value of annuity = ( 1+0.12) x 800 [((1+0.12)^5 - 1) / 0.12]
Future value of annuity = $5,692.15
So,The Future value of annuity due of $800 per year at 12% for 5 years is $5,692.15
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You must consider both consequences, the positive and the negative. Then you must think of a way that you will have a win-win situation or just do the compromising to be able to solve the problem and have a faster solving process.