Answer:
C. Not being able to spend that $100 on some furniture for your house
Explanation:
A possible opportunity cost when you spend $100 on a pair of sneakers is: Not being able to spend that $100 on some furniture for your house. A possible opportunity cost when you spend $100 on a pair of sneakers is: Not being able to spend that $100 on some furniture for your house.
Answer:
TRUE
Explanation:
A basket purchase is the acquisition of a number of assets as a group, in a single purchase transaction. This is common when the basket purchase is lower than the price charged for individual assets.
Answer:
multinational organization
Explanation:
As it is a non-profit it is not a corporation and because, it made operations and transaction around the globe. Therefore, it should be considered multinational as it is not constraint within the frontiers of a single country.
The most famous multinational organization, are the christian organization like:
- Catholic Charities U.S.A
- The Salvation Army
- The Young Men’s Christian Association (YMCA)
The type of venue that small-business retailers favor is C.SPECIALTY SHOP.
Being in a specialty shop, your products will be prominently displayed and competition is minimal <span>compared to other given venues.
Customers, looking for specific items that you can offer, usually prefer going directly to the shops instead of wasting time looking around those bigger venues searching for items they need. </span>
Answer:
Year Cash Flow (A) Cash Flow (B)
0 -37,500 -37,500
1 17,300 5,700
2 16,200 12,900
3 13,800 16,300
4 7,600 27,500
1) Using an excel spreadsheet and the IRR function:
IRR project A = 20%
IRR project B = 19%
2) Using the IRR decision rule, Bruin should choose project A.
3) In this case, since the length of the projects is only 4 years, then there should be no problem with the IRR decision rule, but for projects with longer time lengths, the discounts rates might vary and the best option is to use the modified internal rate of return (MIRR). But in this case the NPV of project B is higher, then Bruin should probably project B because it has a higher NPV. The NPV is always more important then the IRR.
4) Again using an excel spreadsheet and the NPV function:
NPV project A = $6,331
NPV project B = $8,139
5) first we must subtract cash flows from A by the cash flows from B:
1 $11,600
2 $3,300
3 -$2,500
4 -$19,900
then we calculate the IRR = 16%
Bruin should be indifferent between the two projects at a 16% discount rate. That means that at discount rates above 16%, you should choose project A, but at discount rates below 16%, you should choose project B
