Answer:
Annual cost = −64,083
Explanation:
Present maintenance costs = $180000
Maintenance costs after three years = $70000
Real interest rate = 9%
Inflation rate = 3%
Inflation adjusted interest rate, r = 0.09 + 0.03 + (0.09)(0.03) = 12.27% per year
Annual cost = −180,000(A/P,12.27%,5) –70,000(P/F,12.27%,3)(A/P,12.27%,5)
Annual cost = −180,000(0.27927)–70,000(0.70666)(0.27927)
Annual cost = −64,083
Answer:
Option B,
The higher the degree of financial leverage employed by a firm, THE HIGHER THE PROBABILITY THAT THE FIRM WILL ENCOUNTER FINANCIAL DISTRESS.
Explanation:
The degree of financial leverage (DFL) is a leverage ratio that measures the sensitivity of a company's earnings per share to fluctuations in it's operating income, as a result of changes in its capital structure.
This ratio indicates that the higher the degree of financial leverage, the more volatile earnings will be.
The use of financial leverage varies greatly by industry and by the business sector. There are many industry sectors in which companies operate with a high degree of financial leverage (examples are retail stores, grocery store, banking institutions, airlines...). Unfortunately, the excessive use of financial leverage by many companies in this sector has played a major role in forcing a lot of them to file for bankruptcy.
Therefore, if the degree of financial leverage employed by a firm is high, then the probability that the firm will encounter financial distress will also be high.
Answer:
Those with a college degree earn nearly twice as much as those without college.
Explanation:
A college degree increases the chances of securing a higher paying job than a high school diploma. Most employers insist on college degrees for managerial or executive positions. These are the positions with good pay packages. Currently, college graduates earn nearly twice their high school diploma holders.
Answer:
The correct answer is: market efficiency; government intervention; specialization; equilibrium.
Explanation:
The owner of the snow cones realizes that the demand for snow cones has decreased in winter, and thus, closes shop to open back. This is an example of market efficiency.
The local river is being polluted too much because of the huge quantity of chemicals being dumped in the river. The government, as a result, enforces regulation on the quantity of chemicals being dumped. This is an example of government intervention in the economy.
At a restaurant one chef is placed at the vegetable station, one chef is at meat station, and one is to plate the food. This an example of specialization the management is placing chef that specializes in vegetable, meat and in plating at their respective positions. So they can work in the most efficient manner and the service speed increases.
The favorable weather leads to an increase in the supply of oranges. This causes a rightward shift in the supply curve. The price of oranges fall as a result. This is an example of change in equilibrium.
Answer: Increase your confidence through practice by coaching Mexican sales-reps and then seeking feedback on your approach.
Explanation:
Based on the above scenario, to
continuing developing cross-cultural skills in delivering performance feedback, I would need to deliver performance feedback to the sales representatives in a written format.
Another helpful method will be to differentiate between what I will say and how to say it and also determine whether I delivered the feedback with enough deference and humility. This will be needed to convey my message across well.
The least helpful method will be the increase in confidence through practice by coaching the Mexican sales representatives and then seeking the feedback on your approach. Coaching them isn't the way forward.
