Answer:
Operating revenue, R = $300000
Operating Cost, C = $280000
Fixed Cost, F = $40000
Salvage value of fixtures, S = $15000
If it remains open, its value will be = R - C - F + S = 300000 - 280000 - 40000 + 15000 = -$5,000
If the salon closes down, its value will be = S - F = 15000 - 40000 = -$25000
.
Fran should remain open as the value of the salon if remaining open (-$5,000) is more than the value of closing it (-$25,000).
Answer:
Machine A = $ 1.22 million
Machine B = $ 0.70 million
Explanation:
The Equivalent Annual Annuity of the machines is as follows
Machine A = $ 1.22 million
Machine B = $ 0.70 million
Thus the Machine A with a higher Equivalent Annual Annuity of $ 1.22 Million is the better machine.
If the company accepted the better machine which is Machine A, the value of the company increases by $ 3.57 Million (Which is the net total of discounted cash Inflows = Net Present value of Machine A)
See attached file for details.
<span>Investors in financial instruments who engage in information collection face a free-rider problem, which means other investors may be able to benefit from their information without paying for it. Individual investors, therefore, have inadequate incentives to devote resources to gather information about borrowers who issue securities. Financial intermediaries avoid the free-rider problem because they make private loans to borrowers rather than buy the securities borrowers have issued. Because they will reap all the benefits from the information they collect, their information collection activities will be more profitable. They, thus, have greater incentive to invest in information collection.</span>
Answer:
1. 36
2. 16
3. 9
Explanation:
According to Henry Mintzberg, a who is known as a professor of Management of Studies. In his model commonly referred to as organizational configurations framework, he concluded that, managers averaged THIRTY SIX written and SIXTEEN verbal contacts per day with most of these activities lasting less than NINE minutes.
Hence, in this case, the correct answer is 36 : 16 : 9
The discounted payback period does account for the time value of money, and the payback period does not.
<h3>
What is discounted payback period?</h3>
A method of capital budgeting used for determining a project's profitability is known as discounted payback period. This will be done by recognizing the time value of money and by discounting cash flows of the future.
The payback period is the amount of time it takes for an asset's net cash flows to pay back the amount invested in it. It's a quick and easy technique to assess the risk of a given project.
The advantage of this method is utilized in selecting the projects as this method helps to determine the profitability of any project by identifying measures to reach the break-even point in any project.
Learn more about discounted payback, here
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