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mrs_skeptik [129]
3 years ago
15

A woman listed her house that had prize roses bushes in the backyard. She told her agent that she would be removing the roses fr

om the garden and preparing the soil for the new owner to plant their own flowers. Upon the walk-through, the buyers saw that the roses were removed and were angry. That is one of the reasons they were buying the house. What would be the best scenario in this situation?"
Business
1 answer:
gtnhenbr [62]3 years ago
7 0

Answer:

If the rose bushes were not listed as an exclusion the Buyers have the right to cancel the agreement.

Explanation:

Based on the information provided within the question it can be said that the best scenario for this situation would be If the rose bushes were not listed as an exclusion the Buyers have the right to cancel the agreement. That is because they saw the bushes before making the purchase and if they were not added as an exclusion, meaning that they were not included with the house and would be removed, then they have a valid reason for cancelling.

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Savanna Company is considering two capital investment proposals. Relevant data on each project are as follows: Project Red Proje
liberstina [14]

Answer:

(a) Cash payback period:

     Project Red = 5.5 years

     Project blue  = 4.6 years

(b) Net present value for project Red = $19,760

     Net present value for project Blue =$164,580

(c) Annual rate of return:

Project Red =11.36%

Project Blue  =18.75%

(d) Project Blue

Explanation:

Given Data;  

Project Blue Capital investment = $640,000

Project Red Capital investment = $440,000

Project Red  Annual Net income = $ 25,000.

Project Blue Annual Net income = $ 60,000

Annual depreciation Project Red = (440000/8)

                                                       = 55,000

Annual depreciation Project Blue = (640000/8)

                                                       =  80,000

Annual cash inflow project A = $ 80,000

Annual cash inflow project B = $140,000

(a)

Cash payback period = Initial investment/cash flow per period

Project Red = 440000 /80000

                   = 5.5 years

Project blue = 640000/ 140000

                    = 4.6 years

(b)

Project Red  Present value of cash inflows = 80000 ×5.747

                                                                       = $459,760

Project Blue Present value of cash inflows  =140000×5.747

                                                                        = 804580

Net present value for project Red = $459,760 - $440,000

                                                        = $19,760

Net present value for project Blue = 804580 - $640,000  

                                                         =$164,580

(c) Annual rate of return:

Project Red   = $25,000 / ($440000)/2

                       =11.36%

Project Blue =  $60000/(640000/2)

                    =18.75%

(d) Savanna should select Project Blue because it has a higher positive NPV and a higher annual rate of return. AND Project Blue has early cash back period also

6 0
3 years ago
Match each economic scenario with the correct economic term.
kkurt [141]

Answer:

The answer is:

1 - Underutilization

2 - Efficiency

3 - Unattainability

Explanation:

Efficiency in economics means a situation in which all resources are optimally distributed to serve each entity in the best way while minimizing waste and inefficiency.

Underutilization in economics is also a a situation in which lesser resources are being utilized than the economy is capable of utilizing.

Unattainability is a situation in which what one to accomplish or achieve is not possible.

1 - Underutilization

2 - Efficiency

3 - Unattainability

6 0
3 years ago
At the end of Year 2, retained earnings for the Baker Company was $1,850. Revenue earned by the company in Year 2 was $2,100, ex
icang [17]

Answer

Retained earnings at the beginning of Year 2 was: $1,450

Explanation

Revenue = $2,100

Retained Earnings Closing Balance = $1,850

Expenses = $1,150

Dividends = $550

Retained Earnings Closing Balance = Revenue - Expenses - Dividends + Retained Earning Beginning Balance

$1,850 = $2,100 - $1,150 - $550 + Retained Earning Beginning Balance

Retained Earning Beginning Balance = $1,450

5 0
3 years ago
There are three clues labeled "daily double" on the game show Jeopardy. If three equally matched contenders play, what is the pr
yulyashka [42]

Answer:

a)  0.0358

b)  0.0395

c)  0.1506

Explanation:

Number of clues "daily doubles" = 3

Determine the probabilities

<u>a) P(single contestant finds all three ) </u>

assuming event A= a returning champion gets the "daily double" in first trial

P(A) = 1/30 , P(~A) = 29/30              

assuming event B = any player picks up "daily double" after the first move

P(B |~A ) = 1/3

hence : P ( B and ~A ) = 29/30 * 1/3 = 29/90

<em>considering second round </em>

P(player chooses both daily doubles ) = 1/3 * 1/3 = 1/9

∴ P(single contestant finds all three )  = 29/90 * 1/9 = 0.0358

<u>B) P ( returning champion gets all three ) </u>

= (1/30 + 29/90 )* 1/9

= 32 / 810 = 0.0395

<u>c) P ( each player selects only one )</u>

P = 32/405 + 29/405

  = 61 / 405 = 0.1506

7 0
3 years ago
Coffee and tea are substitutes in consumption. If there is an increase in the price of coffee, assuming a positively sloped supp
exis [7]

Answer:

Will increase

Explanation:

Substitutes are the goods which have high elastic demand or positive cross elasticity of demand. An increase in price substantially affects the demand for a substitute good. For example, if tea and coffee are substitutes, an increase in the price of coffee will increase the demand for tea and the overall surplus in the team market.

5 0
3 years ago
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