Answer:
Financing decision
Explanation:
Financing decision is concerned with borrowing and allocating funds for investments.
As such, the decision to borrowed 745,000 dollars and use the fund to build a new restaurant for 745,000 dollars is a financing decision.
Capital Budgeting decision-making process involves plans around any long term capital expenditures whose returns (cash inflows and outflow) are expected to be earned in more than a year.
Answer:
$16,000
Explanation:
With regards to the above information, we are only concerned with calculating the value of 20 tons of styrene to the company, hence other information are not relevant.
The total value of the 20 tons of styrene monomer to the company would be ;
= 20 tons of styrene monomer × Market price of styrene monomer per ton
= 20 × $800
= $16,000
Answer:
B) Leave the equilibrium price unchanged.
Explanation:
Oligopolistic market is the arrangement where few companies offer same product to the customers. There is very less competition in the market so every supplier has fair chance for operating their business successfully. The kinked demand model curve in oligopolistic market would leave the equilibrium price unchanged.
The condition when a payment cap is applied and the required payment does not cover the interest expense, the unpaid interest is added to the loan thereby increasing the loan balance even though the required payment is being made, is known as a negative amortization.
<h3>
What is negative amortization?</h3>
A condition where the amount owed by an individual keeps adding even after the repayments are done is known as negative amortization.
Such condition of a negative amortization arises as the amount being repaid does not fully or partly cover the interest amount.
Hence, the significance of negative amortization is aforementioned.
Learn more about negative amortization here:
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Answer:
If American produces the new compound, profit will increase by $88,000
Explanation:
increase in selling price = selling price of new variant of chemical - selling price of chemical compound
= $83 - $52
= $31
Net increase in profit = total increase in selling price - additional processing cost
= $31*8000 - $160000
= $248000 - $160000
= $88,000
Therefore, If American produces the new compound, profit will increase by $88,000.
net increase in profit =
