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The given statement that most riders cannot tell the difference between low-risk behavior and high-risk behavior is FALSE.
<h3>What is
high-risk behavior.?</h3>
This refers to the type of behavior that a person engages in that could lead to severe consequences.
Hence, we can see that The given statement that most riders cannot tell the difference between low-risk behavior and high-risk behavior is FALSE and this is because they know when they put themselves in danger and when they are following protocols and guidelines about safety.
Read more about high-risk behavior here:
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Answer: 14%
Explanation:
To calculate the Annual Rate of Return on such a project, you divide the Average net profit that the project is expected to make by the Average investment value.
This in effect compares future income to the investment in the project and so is a very useful tool in analysis.
Annual Rate of Return = Average Net Profit / Average Investment
Average Net Profit.
A new salon will normally generate annual revenues of $64,160, with annual expenses (including depreciation) of $40,500.
The net profit is revenue less expenses so,
= 64,160 - 40,500
= $23,660
Average Investment
The Average Investment is calculated by taking the average of the Initial Value of the project and it's ending value.
Initial value is $262,000 as that was the cost.
The Ending Value is the salvage value of $76,000.
= (262,000 + 76,000) / 2
= $169,000
The Annual Rate of Return is,
= 23,660 / 169,000
= 0.14
= <u>14%</u>
Answer:
b)less than $500,000 today, but a positive amount.
Explanation:
By the virtue of the concepts of compounding and discounting, we understand that $1 today is worth more that $1 in the future.
Where Pv = Present value
Fv = Future value
r = discount rate
t = time
Fv = Pv ( 1 + r)^t
As such If a firm can earn a profit stream of $50,000 per year for 10 years, that profit stream is worth less than $500,000 today, but a positive amount.
Answer:
C) $ 15.00 per hour
Explanation:
total labor hours 26,000 per year
total indirect costs $390,000
if the company allocates indirect costs according to labor hours employed, the cost allocation rate should be:
$390,000 / 26,000 = $15 per direct labor hour
This means that for every labor hour employed, $15 will be allocated as indirect costs, e.g. a client requires 50 labor hours per year and $750 (= 50 x $15) in indirect costs.
