Answer:
Some benefits are it improves overall performance, increases employee engagement, identifies promotion opportunities, identifies training needs, and strengthens relationships and loyalty
Answer:
Present Value= $180,000
Explanation:
Giving the following information:
The bequest will provide $9,000 in the first year and will grow by 5% per year, forever.
Interest rate= 10%
To calculate the present value of this perpetual annuity with a growing rate, we need to use the following formula:
PV= Cf/ (i-g)
Cf= cash flow= 9,000
i= 0.10
g= 0.5
PV= 9,000/ (0.10 - 0.05)= $180,000
Answer:
Sunk cost
Explanation:
Sunk cost is cost that has already been incurred and cannot be recovered. It should not be considered when making future decisions
Differential cost refers is difference between the cost of two different decisions.
Replacement cost is a the cost incurred in replacing an essential asset.
Answer:
The correct answer is option
Explanation:
A firm operating in a perfectly competitive market is producing 800 units. The marginal cost is $3.50. The minimum average variable cost is $3. The market price is $4.
The firm will be able to maximize its profit at the point where the price of the product is equal to marginal cost and is able to cover the average variable cost of the product.
This firm should thus increase its production to more than 800 units till the marginal cost is equal to the price which is $4.
