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klio [65]
3 years ago
6

You are considering a project and are concerned about the reliability of the cash flow forecasts. To reduce any potentially harm

ful results from accepting this project, you should consider:
A. Lowering the degree of operating leverage.
B. Lowering the contribution margin per unit.
C. Increasing the initial cash outlay.
D. Increasing the fixed costs per unit.
E. Lowering the operating cash flow.
Business
1 answer:
Nuetrik [128]3 years ago
8 0

Answer: A. Lowering the degree of operating leverage.

Explanation:

The degree of operating leverage measure how much the earnings from a project will change as a result of sales.

If you are worried about the cash flow forecasts, it would be best to lower the operating leverage so as to reduce the forecasting error associated with the project. If the operating leverage is high then a small change in sales could impact income in a relatively huge way. By reducing the DOL, the cashflow from the project is easier to forecast and therefore more reliable.

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Marvin company negotiated the purchase of a new building for $250,000. Marvin paid a $100,000 down payment and will pay off the
BARSIC [14]

In the given transaction Marvin Company has purchased a new building for $250,000. Marvin paid a $100,000 down payment and will pay off the remainder over seven years it means the balance (250000-100000) = 150,000 is a liability for Marvin company.

So there is an Increase in the asset by $250,000 due to purchase of the building and there is a decrease in assets by $100,000 due to the payment of cash. Hence the Net increase in the assets is (250,000-100,000) = $150,000.

And there is an increase in the liabilities by $150,000.


Hence the correct answer is:

d. $150,000 net increase in assets and $150,000 increase in liabilities




3 0
3 years ago
Are these true or false ????
Lemur [1.5K]

Answer:

10. true

11. false

12.false

13.true

14.false

15.false

5 0
3 years ago
A patent: Group of answer choices includes articles or processes falling under the category of physical phenomena or abstract id
ryzh [129]

Answer:

The correct answer is letter "C": deprives competitors of the opportunity to use the invention without the patent holder's consent.

Explanation:

Patents are grants given to the creator of innovation by which that individual is the only person with the right of use of the new technology. The U.S. Patent and Trademark Office (USPTO) is the agency in charge of evaluating the patent requests and providing them whenever suitable.  

Patents are usually given for 20 years beginning from the date when the patent application was filed in the USPTO. If approved, <em>other individuals cannot use, replicate or exploit the innovation without the explicit permission of its creator.</em>

4 0
4 years ago
A share of common stock just paid a dividend of $1.00. If the expected long-run growth rate for this stock is 5.4%, and if inves
BlackZzzverrR [31]

Answer:

$11.98

Explanation:

A share of common stock just made a dividend payment of $1.00

The expected long-run growth rate of for this stock is 5.4%

= 5.4/100

= 0.054

The investors required rate of return is 14.2%

= 14.2/100

= 0.142

The first step is to calculate the dividend year 1(D1)

D1= Do(1+g)

= 1(1+0.054)

= 1×1.054

= $1.054

Therefore, the stock price can be calculated as follows

Po= D1/(rs-g)

= 1.054/(0.142-0.054)

= 1.054/0.088

= $11.98

Hence the Stock price is $11.98

3 0
3 years ago
Why is it important for businesses to recognize secondary stakeholder groups?
arsen [322]
The answer to this question is letter e, they have legitimacy and can exert power. For the secondary stake holders in business are also considered to be important for they have the ability to control those around them in the are of business as they hold a power in which they could use to control them. Another factor is that they are valid and vital in the area of business to keep it from going.
4 0
3 years ago
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