Answer:
Extended decision making
Explanation:
Extended decision making is the decision making which involve the very high level of the purchase, an internal as well as extensive information search which is followed by the complex computation of the alternatives available and thorough evaluation is taken place when the purchase will take place.
So, for most of the people, when the decision of purchase is to be made like for the Ford automobile, the people will choose the extended decision making as it is expensive, infrequently purchased products.
Answer:
Variable cost Per Unit $2.50
Explanation:
Total cost at high activity = $8100
Total Cost at Low activity = $3600
Total Units at high activity = 2400
Total Units at low Activity = 600
Variable Cost Per Unit = (High activity total Cost - Low activity total cost ) / (High Activity unit - low activity units)
Variable cost per unit = ($8100 - $3600) / (2400 - 600) = $4500 / 1800 = $2.50
<span>The cross-price elasticity of demand between salt and pepper is -0.50
In this example salt and pepper are Complements.
Instead, suppose salt and pepper were substitutes. If so, the the cross-price elasticity of demand between salt and peeper would be positive.</span>
Since Alex and Bailey are partners and they will be shutting down the partnership. the debts should be settled by both. they will have to sacrifice their personal assets in doing so
Answer:
Project L is the better project as it has higher NPV and its IRR is 12.70%
Explanation:
- NPV of Project S as followed:
-1,000 + 895.03/(1+10.5%) + 250/(1+10.5%)^2 + 10/(1+10.5%)^3 + 5/(1+10.5%)^4 = $25.5
- NPV of Project L as followed:
-1,000 + 5/(1+10.5%) + 260/(1+10.5%)^2 + 420/(1+10.5%)^3 + 802.5/(1+10.5%)^4 = $67.
<u>=> Project L is the better Project as it has higher NPV.</u>
The IRR is the discount rate that puts the net present value of project's cash flows to 0 (zero).
- IRR of Project L as followed:
-1,000 + 5/(1+IRR) + 260/(1+IRR)^2 + 420/(1+IRR)^3 + 802.5/(1+IRR)^4 = 0 <=> IRR = 12.70%
