The reason why business fail is because they find it extremely hard to compete with the well known business. for example a man that opens up a buisiness that sells soap and decides to name the soap and company labbi but everyone goes to dove because it's more well known and been out for years and delivers high quality
It should be the Second one that fits the best answer
Answer:
The correct answer is letter "A": the discount rate that makes the net present value of a project equal to the initial cash.
Explanation:
The Internal Return Rate, or IRR, is a central component of corporate finance capital budgeting. Companies use it to determine which discount rate will make the Present Value of the after tax cash flows equal to zero (0). Any project that returns an IRR greater than 0 ads has a value.
<em>In the decision-making process, IRR is subordinated to Net Present Value because it is preferred an absolute dollar amount that is higher than a higher IRR.</em>
Answer:
The correct answer is profit of $2.3 by selling it in Mexico.
Explanation:
According to the scenario, the computation of the given data are as follows:
In the United states Cost of shoes = $45
In Mexico, Cost of Shoes = 430 Pesos ( where $0.1100 = 1 pesos)
So, 430 Pesos = 430 × $0.1100 = $47.3
So, we can calculate the profit to sell in Mexico as follows:
Profit to sell in Mexico = Sell price in Mexico - Sell price in US
= $47.3 - $45
= $2.3
So, the arbitrage opportunity exist by buying the shoes in Pesos and selling it in Mexico, one can make a profit of $2.3 per shoes.
