Answer:
The most I could pay for the investment is $12,960.09
Explanation:
The maximum a rational investor could pay acquire an investment is the present value of all future cash flows receivable from the investment.
In the case, the present of all cash flows is calculated thus:
Years Cashflows [email protected] 12% PV
1 5000 0.892857143 4,464.29
2 5300 0.797193878 4,225.13
3 6000 0.711780248 4,270.68
Total of present values 12,960.09
The discounting factor is calculated using the formula :
1/(1+r)^n where r and n are rate and number of years respectively.
Answer:
c. update the static planning budget to reflect the actual level of activity for the period
Explanation:
A flexible budget is a financial plan of expenses and revenues based on the actual level of output. A flexible budget adapts to changes in prices and company needs. Because the budget varies with the market condition, it is called a variable cost.
Due to their variable nature, flexible budgets are used to update the static estimates at the end of a period. The company compares the actual result in the flexible budget with that of a static budget. The management uses a flexible budget to evaluate the business performance for the period. Specific areas of success and failures are highlighted. Decisions on areas that need improvement can then be made.
Answer:
b. customer-oriented
Explanation:
Product-oriented company is the company focus on the product only. They would put most effort on the quality enhancement or differentiation so as to offer as many choice as possible at the reasonable prices.
Customer- oriented company is one that tries to figure out issues related to consumers' satisfaction and the demand of targeted market. Any changes of products and services would base on the needs of the market.
=> When testing new dishes on volunteers and staffs, they are trying to understand the taste, the preference of them and thinking about the adjustment to adapt their targeted segment.
Sales -oriented company is the one that focus on raising the revenue. These firms tend to focus on looking for distribution channels to sell as many products as possible.
Answer:
It is money that was paid off investment.Hope it helps.
Explanation: