Answer: E.When there are so many industry rivals that the impact of any one company's actions is spread thinly across all industry members
Explanation:
The more the number of players in an industry the more it gets congested and especially for the competing sellers. The decision for increasing or reducing price is met by follower firms to do the same thing. It gets less competitive because you know all the players in the industry would be following the same practices and doing the same thing.
Answer: $126,613
Explanation:
Net Present value of Project A is:
= Present value of $50,000 annuity + Present value of residual value - Initial investment
Present value of $50,000 annuity:
= 50,000 * ( 1 - ( 1 + rate)^-number of periods) / rate
= 50,000 * ( 1 - ( 1 + 12%) ⁻⁸) / 12%
= $248,382
Present value of residual value:
= 8,000 / ( 1 + 12%)⁸
= $3,231
Net present value
= 248,382 + 3,231 - 125,000
= $126,613
Answer:
$24.86
Explanation:
The estimated stock of Zephyrl is $50
This is for a period of 5 years
The rate of return is 15%
Therefore the price that will be paid for this stock can be calculated as foloes
50= x (15/100^5)
50= x (0.15+1^5)
50= x (1.15^5)
50= 2.0113x
Divide both sides by the coefficient of x
= 50/2.0113
= 24.86
Hence the price that will be paid for the stock is $24.86
Answer:
a. How long will the current bridge system work before a new bracing system is required?: 64.18 years or 64 years and 2 months.
b. What if the annual traffic rate increases at 8 % annually: The bracing system will last for 24.65 years or 24 years and 7 months.
c. At what traffic increase rate will the current system last only 12 years: 17.13%
Explanation:
a. Denote x is the time taken for the number of pedestrian to grow from 300 to 2000. The current pedestrian is 300, the grow rate per year is 3% or 1.03 times a year. Thus, to reach 2,000, we have the equation: 300 x 1.03^x = 2000. Show the equate, we have 1.03^x = 6.67 <=> x = 64.18
b. Denote x is the time taken for the number of pedestrian to grow from 300 to 2000. The current pedestrian is 300, the grow rate per year is 8% or 1.08 times a year. Thus, to reach 2,000, we have the equation: 300 x 1.08^x = 2000. Show the equate, we have 1.08^x = 6.67 <=> x = 24.65.
c. Denote x as traffic increase rate. The current pedestrian is 300, the grow rate per year is (1+x) times a year. Thus, to reach 2,000 after 12 years and thus a new bracing system to be in place, we have the equation: 300 x (1+x)^12 = 2000. Show the equate, we have (1+x)^12 = 6.67 <=> 1+x = 1.1713 <=> x = 17.13%.
Answer:
t value is 1.495
Explanation:
The null and alternative hypothesis are :
H0 : mu = 1327
ha: mu > 1327
This is a one tailed test
Critical value = 1.771
at 0.05 significance level with df = 14-1 = 13
test statistics:
s = 411.53, n = 14
t = (xbar -mu)/(s/sqrt9n))
= ( 1491.43 - 1327)/(411.53/sqrt(14))
= 1.495
Decision:
Reject H0 if tstat > 1.771
Fail to reject H0
