Answer:
c) The rental cost of some new machinery that will be acquired for Project A
Explanation:
Incremental cash flow for a project relate to those activities undertaken specifically for the project which involve a fixed outlay of cash flows.
It means possible increase or decrease in cash flows when a new project is taken up. Such cash flows are entirely attributable to the project under consideration.
In the given case, property taxes, insurance were pre existing costs i.e which would've been incurred anyway.
Similarly, test marketing cost to know of project viability is not a recurring but one time cost and most importantly it is incurred prior to taking up the project.
Contractual annual salary of the president is not attributable to Project A alone.
Hence, the rental cost of some new machinery that will be specifically acquired for Project A would be termed as incremental cash flow for Project A.
Answer: True
Explanation:
Economics is the study of how decisions are made by humans when they're faced with scarcity of resources. It is concerned with how the resources that are in the economy will be efficiently used.
Therefore, the statement that "Economics is the social science concerned with the efficient use of scarce resources to achieve the maximum satisfaction of economic wants" is true
This is true. A decision made at work typically has an obvious answer.
Answer:
The correct word for the blank space is: stakeholder mapping.
Explanation:
Stakeholder mapping is the act by which companies look for investors so they can finance their projects. The mapping allows entrepreneurs to verify if their project plan is good enough to attract capital and the process also helps to identify who of those investors are serious in making the plan become a reality.
Answer:
Profit margin = net profit / total sales = $78 / $5,200 = 1.5%
Asset turnover = total sales / average total assets = $5,200 / ($2,990 + $3,510) = 1.6
Return on assets = net income / average total assets = $78 / $3,250 = 2.4%
Return on common stockholders’ equity = net income / average stockholders' equity = $78 / ($992 + $1,031) = 7.71%
Gross profit rate = gross profit / total sales = $1,716 / $5,200 = 33%
