Interest groups always have a lot of issues that they face. The Free Rider Problem makes it harder for interest groups to attract official members who will pay to join is a true statement.
Interest group is known to be a group set up around a set of opinions or preferences and they often seek to affects others in different ways so as to promote or protect their interest.
A free rider problem is known to be a common issued that is faced by unions and groups when people do not join due to the fact that they can benefit from the group's activities without officially joining.
This pose a big issue as people just want to enjoy privileges for free The bigger the group, the more large the free rider problems are.
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Answer:
0.339 < p < 0.461
Explanation:
Given data:
confidence interval is 92%
Randomly selected adults = 329
Total number of adults is 763
for alpha = 0.04
z value is = 1.75
0.339 < p < 0.461
Market value of the assets is the total value of the assets the organization will receive if it is liquidated today.
Market value of firm’s total assets = Market value of firm’s current assets + Market value of firm’s fixed assets
= Cash + Market value of inventory + Collectible accounts receivables + Market value of fixed assets
= 18600 + 85000 + 34500 + 349000
= $487100
Therefore, the market value of firm’s assets would be $487,100.
Answer:
1. Sunk costs : $3.2 billion is a sunk cost as it is already incurred.
2. Opportunity costs: $352 million investment for finishing project is an Opportunity cost. However it will yield $15.1 million per annum for next 5 Yrs.
So Present Value of this CF is less than $15.1 5=$75.5 million.
So Net Present Value = CF0 + CF1 + ......+ CF5 = -352 + Less than 75 = Negative.
So another Opportunity of selling the Satellite for $460 million is a better option.
3. Specify the relevant cash flows.
If additional $352 million investment is undertaken,
$352 million will be Cash outflow in Y(0). It will result in Annual CF of $15.1 million for next 5 yrs.