Answer: a. 0.042 b. 0.086 c. 0.00692
Explanation:
NOTE: Convert months to years. So 24 months = 2 years.
a. Six months
Months to year conversion gives: 6months/24months as 1/4 years
= (1 + 18%)^ 1/4 — 1 x 100%
= 1.042 — 1
= 0.042
Equivalent Discount Rate = 0.042
b. One year
12months/24months as 1/2 years
= (1 + 18%)^1/2 — 1 x 100%
= 0.086
Equivalent Discount Rate = 0.086
c. 1 month
1month/24months as 1/24 years
= (1 + 18%)^1/24 — 1 x 100%
= 0.00692
Answer:
The correct answer is letter "A": split-run testing.
Explanation:
A split-run test is useful for companies advertising their products through e-mails or print advertisements. The firm takes a sample of the target population and divides the test into two sections to measure the responsiveness of consumers to one and another promotion. The advertisement that ends up resulting in being more beneficial is sent to all the audience the institution has.
Research skills
(Time management is lower on the totem pole while the other 2 are on the bottom)
Answer:
$137,200; $103,600
Explanation:
In 2015:
Free cash flow:
= Net cash flow from operating activity - Capital expenditure
= $294,000 - (70% × $224,000)
= $294,000 - $156,800
= $137,200
In 2016:
Free cash flow:
= Net cash flow from operating activity - Capital expenditure
= $280,000 - (70% × $252,000)
= $280,000 - $176,400
= $103,600