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3 years ago

Normative and positive statements

Business

1 answer:

kvasek [131]3 years ago

3 0

Answer:

Positive statement:

It is basically based on target and truth. Moreover, optimistic deliveries are have to be compelled to validate or nullified yet can't correct than

Normative Statement:

Adaptable announcements are particular and also the materials are value primarily based. The statements are basically valuation primarily based so that they can't be tried.

Since the statement 1 are often proved or contradicted by grouping and evaluating the information, thus this can be a positive statement.
Since the statement 2 is opinion primarily based, we tend to can't take a look at it, and thus this can be a normative statement.
Since the statement 3 are often tested by seeing those conditions. Hence, this can be a positive statement.
Since the statement 4 is opinion primarily based, thus we tend to can't take a look at it. Therefore, this can be a normative statement.

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You want to provide spending money for your 4 year old during their college years. You can afford to deposit $600/year for the n

umka2103 [35]

Answer:

The Annual investment that you will to make will be $1,069.01

Explanation:

In order to calculate the uniform annual investment that will you have to make on the child's 8th through 17th birthdays to meet this goal, we have to make the following calculations:

First we need to calculate the Amount you have at the end of child's 8th year = 600*(1+0.05)^4 + 600*(1+0.05)^3 + 600*(1+0.05)^2 + 600*(1+0.05)^1 = $2,715.38

Therefore, Value of this amount at the end of 17th year = $2715.38 * (1+0.05)^9 = $4,212.45

So, Amount required to be saved = $16,000 - $4,212.45 = $11,787.55

Therefore, to calculate the annual investment we would have to use the following formula:

FV of annuity = P*[((1+r)^n - 1)/r]

P - Periodic payment =?

r - rate per period = 0.05

n - number of periods = 17-8 = 9

$11787.55 = P*(((1+0.05)^9 - 1)/0.05)

P = $11,787.55/11.03 = $1,069.01

The Annual investment that you will to make will be $1,069.01

8 0

3 years ago

The following data are for the Akron Division of Consolidated Rubber, Inc.: Sales $ 820,000 Net operating income $ 59,000 Averag

VladimirAG [237]

Answer:

11.56%

Explanation:

The computation of the minimum required rate of return is shown below:

Residual income = Net operating income - (Average operating assets × minimum required rate of return)

$22,000 = $59,000 - ($320,000 × minimum required rate of return)

After solving this the minimum required rate of return is 11.56%

By applying the above formula we can find out the minimum required rate of return

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2 years ago

What would the new optimal solution of product 3 sold for $15, and 100 hours of labor could be purchased?.

slega [8]

Answer:

I don't know sorry sorry forgive me

Explanation:

sorry

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2 years ago

Explain why, in the absence of a patent, a technical innovation invented and pioneered in one tofu factory will cause the supply

Pavlova-9 [17]

Answer:

We should start by assuming that before the technological break through is made, the tofu industry is at equilibrium. The new technology will result in the production costs of tofu decreasing, which will shift the supply curve to the right. At first, production costs of just the innovative firm will decrease, but eventually other firms will catch up with the new technology. In the short run, the innovative firm will be able to make an economic profit since the industry will not have reached equilibrium. But after a while, as more firms adopt the new technology, equilibrium will be reached and economic profit will disappear (halting the rightward shift).

If the government grants a patent to the innovative firm that developed the new technology, then a monopoly might result. This is something similar to monopolies resulting from patents in the pharmaceutical industry. The profits of this specific company will increase, resulting in economic profit. Governments hand out patents as a way to reward innovation and encourage it. Imagine if patents didn't exist, how many companies would invest billions in R&D if they know that their competition will use that research for free?

When patents are granted, prices increase, and consumer surplus decreases.

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2 years ago

Which of the following is true for a company that doesn't adjust their WACC for project risk? a. The company would accept more a

dexar [7]

Answer: d. The company would accept more riskier than average projects than they should otherwise.

Explanation:

A company's Weighted Average Cost of Capital can enable it know the calibre of risk to accept from new project because it shows the business risk of funding current business operations.

If a project will bring more risk to the company, the WACC should be adjusted so that the company will get a fair rate of return from the new project. If they do not adjust the new project for risk, not only will the company not get a fair return but they might also accept riskier projects because they will accept projects that they think have a lower risk than their WACC even though they are higher because they did not adjust their WACC.

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3 years ago