Answer:
B) Accept Project A and reject Project B.
Explanation:
We use excel or a spreadsheet to calculate this ratio.
See document attached.
Cash flow will solve this problem.
At moment 0 we have the investment cost or initial cost, in this case $125,000 or $135,000. From period 1 to period 3, we have different incomes. Then, we calculate the Net cash flow that is the difference between benefits and cost.
We use all the result (positive and negative) in Net cash flow to get the IRR.
<u>Project A</u>
Internal Rate of Return (IRR) 18,86%
<u>Project B</u>
Internal Rate of Return (IRR) 13,78%
So we should accept Project A and reject Project B, because in project A the IRR is bigger of required return ( 16%), we reject project B because the IRR is smaller.
The lender is bearing the risk on defaulting the loan
Explanations:
Required 1
Actual manufacturing overhead= $11000+20000+143000= $174000
Underapplied or overapplied overhead= Actual manufacturing overhead-Applied manufacturing overhead
= $174000-152000= $22000 underapplied
Required 2
Adjusted cost of goods sold= $342000+22000= $364000
Answer:
Unique product.
Explanation:
The main driver of the LEGO's strategy is their unique product. Despite it is easily fakeble, LEGO has reach a level where the product is inseparable of the experience that offers the toy. Unlike, Hasbro or Mattel, unable yet, of produce a unique toy and an unique experience.
Some would say that is the marketing strategy the actual competitive advantage, but is important to remember that there is no good marketing strategy without a good product.
I think they have to use both the lap one to secure the chair and the shoulder belt to secure both
