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3 years ago

According to When to Ally, When to Acquire:

1 answer:

5 0

Answer: b) When the resources are similar in both the target and acquiring firms, an acquisition would be more appropriate so that there is more control over the resources.

Explanation:

According to When to Ally, When to Acquire, it is best to embark on an Acquisition drive if the company being acquired uses similar resources to the one buying.

That way Acquisition will bring both resources together and lead to a command of a larger market share and profit margin and less competition.

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A firm is reviewing an investment opportunity that requires an initial cash outlay of $336,875 and promises to return the follow

Fofino [41]

Answer:

The NPV of this investment is $64,581.75

Explanation:

Hi, we need to discount to present value all the future cash flows, the formula to use is as follows:

$NPV=-Investment+\frac{CF1}{(1+r)^{1} }+\frac{CF2}{(1+r)^{2}} +\frac{CF3}{(1+r)^{3}} +\frac{CF4}{(1+r)^{4}} +\frac{CF5}{(1+r)^{5}}$

Where

NPV = Net Present Value

CF = The cash flow stated in the problem by year

r= discount rate (in our case, 0.08 or 8%)

Now, let´s solve this.

$NPV=-336,875+\frac{100,000}{(1+0.08)^{1} }+\frac{82,000}{(1+0.08)^{2}} +\frac{76,000}{(1+0.08)^{3}} +\frac{111,000}{(1+0.08)^{4}} +\frac{142,000}{(1+0.08)^{5}}$

$NPV=-336,875+ 92,592.59 + 70,301.78 + 60,331.25 + 81,588.31+96,642.81$

$NPV=64,581.75$

So, the net present value of this project is $64,581.75

Best of luck.

7 0

3 years ago

I need help with economic hw can someone come up with a example for scarcity and choice, opportunities cost

diamong [38]

Scarcity occurs when the demand for something exceeds the supply. Examples often occur with natural resources when they are over used. Think of over fishing, hunting or poor farming. The choice to over hunt in present may cost hunting opportunities in the future.

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3 years ago

An agent gives a conditional receipt to a client for an insurance policy after collecting the initial premium. when will the pol

ExtremeBDS [4]

If the insurer takes the policy as applied for the coverage will take effect when the conditions of the receipt are met and from the date of the application or medical exam. The two types of conditional receipts are insurability and approval. The insurability receipt provides interim coverage as the applicant is insurable while the approval receipt will not begin until the insurer will approve the claim. However, conditional receipts will provide the coverage if the applicant is insurable as applied for and coverage will not be delivered until the applicant accepts the coverage if the insurer concerns a counter-offer because the applicant is substandard risk.

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2 years ago

In some ways, a debit card is more vulnerable to theft than cash or a checkbook. Explain how this is so. << Read Less

avanturin [10]

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i have wasted 130 dollars at fortnite and i am brome

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2 years ago

Kennedy, Inc. reported the following data:

Degger [83]

Answer:

The cash flows from operating activities section of the statement of cash flows using the indirect method is $172,475.

Explanation:

Kennedy, Inc.

Statement of cash flows (extract)

Net income $179,562

Add: Depreciation expense 15,511

Loss on disposal of equipment 11,046

Less: Gain on sale of building (21,801)

Increase in accounts receivable (8,734)

Decrease in accounts payable (3,109)

Cash flows from operating activities $172,475

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3 years ago