Answer:
0.5
Explanation:
marginal propensity to consume Can be regarded as the increase in pay that is been consumer experience on the purchasing of products which is just a part at aggregate. Instead of consumer to save
We are told that income rises from $46,000 to $48,000.
The difference= $48,000-$46,000= $2000
✓consumption spending rises from $38,00 to $39,500
The difference= $39,500-$38,00= $1000
Then the marginal propensity to consume can calculated as ratio of the difference in consumption spending to income rise
=1000/2000=0.5
Therefore, the MPC is 0.5
Answer:
The correct anwer is B. real-options perspective.
Explanation:
They are known as Real Options to the possibilities that some projects have to introduce, in the future, modifications in productive investments thus increasing their value. In practice, managers often refer to these options as intangibles.
The classic models of valuation of investment projects based on the discount of cash flows (NPV, IRR), do not incorporate in the project valuation the possibility of introducing modifications, so that the total value of the project is increased. Therefore, the non-consideration of these modification options may undervalue investment projects by not considering aspects that may be strategic for the company and cause it to discard projects that it should undertake.
The existence of Real Options increases the value of an investment project. In this way, the value of the total project can be calculated as the value of the project without the option (NPV) plus the value of the option.
Answer:
Net Cash Increase of $115
Explanation:
Receivable Increases by $150 means a cash outflow in receivable by $150 because Increase in Receivable indicates that there are more sale on credit is made than cash received from the customers. So, the outflow in the receivable section is more than the inflow.
Inventory Decreases by $95 means the inventory sold during the period is more than purchases / manufactured. It result in cash inflow as cash is not being held in the form of inventory.
Accounts Payable increases by $225 means that company is making less payment to its suppliers, so that its balance has been increase. Company made more purchases than payment made to suppliers. Net cash Inflow is observed from this.
Common dividend payment of $55 means a direct cash outflow because actual cash has been paid during the year.
Net Effect on Cash = Cash inflows - Cash outflows
Net Effect on Cash = ( Inventory decrease + Accounts Payable increase ) - ( Accounts Receivables increase + Common dividend payment )
Net Effect on Cash = ( $95 + $225 ) - ( $150 + 55 )
Net Effect on Cash = $320 - $205
Net Effect on Cash = $115
Net Cash Increase of $115
Answer:
Empathy
Explanation:
Empathy is the ability of a person of business entity to understand the thoughts, feelings, and emotions of their customers. It is the ability to personalise the customer's situation.
This makes the business go the extra mile in solving the customer's problem.
In this scenario Northwestern mutual felt the pain and understood the financial needs of the families of first responders during the 9-11 attack.
So without official death certificates they paid death benefits only 3 days after the attacks.
Other insurance companies however did not empathise with their customers and only paid death benefits some months to a year.
Answer:
The amounts that Beldon should capitalize as the cost of the land and the new building is $64,900 and $528,500 respectively
Explanation:
The computations are shown below:
For land:
= Purchase value of the land + Demolition of old building + Legal fees for title investigation of land - Salvaged materials
= $60,000 + $4,500 + $2,500 - $2,100
= $64,900
For building:
= Architect’s fees (for new building) + Construction costs + Interest on construction loan
= $13,000 + $510,000 + $5,500
= $528,500
