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PolarNik [594]
3 years ago
13

The additional dining space will occupy space next to Olaf’s that was recently rented to a tenant. By claiming the space for the

project, the firm will no longer be able to rent the space at $1,000 per month. Kristoff wants to evaluate this project over a four year time period. The after-tax operating profit margin on the renting the space is 30%. If Kristoff wants a 9% APR on Olaf cash flows, what is the present value of this opportunity cost? (rent is paid as the beginning of the month)
Business
1 answer:
Illusion [34]3 years ago
3 0

Answer:

$12,146

Explanation:

The computation of present value of this opportunity cost is shown below:-

Net After tax Operating Profit Per month = Rent space per month × Profit margin on the renting the space percentage

= $1,000 × 30%

= $300

Project is for 4 Years

Total months = 4 × 12

= 48 Months

Interest Rate Per month = 9% ÷ 12

= 0.75%

As per the question the Rent is Received at the start of the month

So Present Value of this opportunity cost = $300 (1 + PVAF (0.75%,47))

= $300 × ( 1 + 39.486)

= $12,145.85

= $12,146

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Hofstede studied how culture influences consumer behavior. When a Japanese company decides that it will be willing to lose money
4vir4ik [10]

Answer:

The correct answer is letter "C": Temporal orientation.

Explanation:

Holland psychologist Geert Hofstede (1928-2020) proposed there are five dimensions of culture among societies. Those are: <em>Power Distance Index, Individualism Versus Collectivism, Masculinity versus Femininity, Uncertainty Avoidance Index, </em>and<em> Long- Versus Short-Term Orientation. </em>

Long- Versus Short-Term Orientation <em>or </em>Temporal Orientation <em>represents the time horizon individuals of a given society display. Long-term oriented countries are pragmatic, modest and emphasize virtues. Therefore, the Japanese company of the case would be displaying this type of culture by prioritizing objectives for over twenty years rather than two years.</em>

3 0
3 years ago
Consider a production possibilities frontier (PPF) with good X on the horizontal axis and good Y on the vertical axis. The PPF i
Ahat [919]

Answer:

C

Explanation:

The Production possibilities frontiers is a curve that shows the various combination of two goods a company can produce when all its resources are fully utilised.  

As more quantities of a product is produced, the fewer resources it has available to produce another good. As a result, less of the other product would be produced. So, the opportunity cost of producing a good increase as more and more of that good is produced.

If the PPF is a straight line, it means there is a constant opportunity cost no matter the point one is on the curve

8 0
4 years ago
James is in an art gallery when Mitch, who has no special art expertise, points to a painting and says, "That artist is so good.
kumpel [21]

Answer:

c.

Explanation:

Based on the information provided within the question it can be said that the court will enforce the contract between James and the art gallery. This is because a purchase is final and the store was not responsible for giving James false hope/information. Therefore unless the store has a specific return policy then the court will enforce the contract (purchase).

7 0
4 years ago
The flexible budget performance report directs management's attention to areas where corrective
enot [183]
The flexible budget performance report directs managements attention to areas where corrective action can help control operations. Management uses the report to determine price and quantity variances.
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4 years ago
What Factors Are Reshaping and Redefining Management ?
s2008m [1.1K]

Answer:

I think the answer is Changing workplaces, Ethical and trust issues, Global economic uncertainties, Changing technologies.

Explanation:

I hope this helps.

6 0
3 years ago
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