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2 years ago

Which of the following is an objection to relying solely on Return on Market Investment (ROMI) results?

1 answer:

4 0

The statement that <span>is an objection to relying that solely on Return on Market Investment (ROMI) results is that </span>"ROMI requires knowing what would have happened without the marketing expenditure." ROMI <span> is the contribution to profit attributable to </span>marketing<span> (net of marketing spending), divided by the marketing 'invested' or risked.</span>

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A company has the following liabilities at year end:

lisov135 [29]

Answer:

B) $16,000

Explanation:

Current liabilities are debt that must be paid within a 12 month period.

The total value of the notes payable is $355,000, but only $16,000 is due within 12 months. The $175,000 of short term debt has been refinanced and reclassified as long term debt. The $25,000 of deferred tax liability is also non current.

4 0

2 years ago

Why would a government want to use expansionary fiscal policy to help stimulate aggregate demand if, in the long run, we would e

Oksana_A [137]

Answer:

It could take a long time for prices to adjust by market forces alone.

Explanation:

Based on the information provided within the question it can be said that the the government would want to do this mainly due to the fact that It could take a long time for prices to adjust by market forces alone. Therefore by using expansionary fiscal policy they would speed this process up and get prices adjusted in a much shorter time-frame.

8 0

2 years ago

Henson Company has an investment opportunity that costs $9,936 and increases annual net cash flows by $3,000. Assuming a present

sasho [114]

The Net Present Value of the Investment is -$1,064

<h3><u>SOLUTION</u></h3>

“Net present value is the present value of the cash flows at the required rate of return of your project compared to your initial investment,” In practical terms, it's a method of calculating your return on investment, or ROI, for a project or expenditure.
An investment is an asset or item acquired with the goal of generating income or appreciation. Appreciation refers to an increase in the value of an asset over time. When an individual purchases a good as an investment, the intent is not to consume the good but rather to use it in the future to create wealth.

Annual Cash Inflows $3000

Present Value Factor 3.312127,

Present Value of Cash Inflows $9936

Less: Initial Investment $11,000

Net Present Value -$1,064

<h3><u>EXPLANATION</u></h3>

In net present value method the future cash inflows rate are discounted to present net value at discount rate (PV FACTOR)
The rationale for discounting is money received today is more valuable than the money to be received in future.
So the present value of cash inflows is compared with initial investment if net present value is positive then the project is accepted otherwise its rejected.

In this case the net present value is negative, hence the project will be rejected.

To know more about Net present value, click the given links.

brainly.com/question/17185385

brainly.com/question/23857734

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5 0

1 year ago

completion. Item8 Part 5 of 5 10 points Return to questionItem 8Item 8 Part 5 of 5 10 points Required information [The following

zloy xaker [14]

Answer and Explanation:

The computation of amount of revenue and gross profit (loss) to be recognized in each of the three years is shown below:-

Sales revenue for the present period for 2021 = $31,00,000.00

Sales revenue for the present period for 2022 = $46,00,000.00

Sales revenue for the present period for 2023 = $23,00,000.00

Gross Profit for year 2021 = $5,58,000.00

Gross profit for year 2022 = $8,28,000.00

Gross profit for year 2023 = $2,25,400.00

To reach the sales revenue we simply deduct the Sales revenue recognized in previous period from Sales revenue recognized till date for 3 years on the other hand to compute the gross profit we simply deduct the Cost incurred during the year from Sales revenue for the present period for 3 years.

For clarification we attached the spreadsheet to reach the sales revenue and gross profit for 3 years.

3 0

2 years ago

Sales of $3800, has variable costs $300 and has fixed costs$1000. calculate the degree of operating leverage

krok68 [10]

The degree of operating leverage can be calculated by subtracting variable costs from sales and dividing it by sales minus variable costs and fixed costs.
The degree of operating leverage is
(3,800−300)÷(3,800−300−1,000)
=1.4

7 0

2 years ago