Answer:
d. One defect of the IRR method versus the NPV is that the IRR does not take proper account of differences in the sizes of projects.
CORRECT As the project yields over time can differ. This generates that projects with a lower IRR can achieve a higher NPV at lower rates.
There is a crossover point after which a projects NPV are equal and from there the one with higher IRR obtains better NPV
Explanation:
a. One defect of the IRR method versus the NPV is that the IRR does not take account of the time value of money.
FALSE both method consider time value of money
b. One defect of the IRR method versus the NPV is that the IRR does not take account of the cost of capital
FALSE The IRR can be compared against the cost of capital to indicate wether or not a project should be preferable
.c. One defect of the IRR method versus the NPV is that the IRR values a dollar received today the same as a dollar that will not be received until sometime in the future.
FALSE IRR considers the time value of money
e. One defect of the IRR method versus the NPV is that the IRR does not take account of cash flows over a project's full life.
FALSE it considers all the cash flows over the project's full life.
Answer:
The correct answer is (b) Nextflix supplies 250 subscriptions and Flixbuster supplies 250 subscriptions.
Explanation:
Solution
Now,
A monopolist would supply where the total revenue is Maximum
So, quantity produced = 500 where each will produce 500/2
=250 units
Therefore from the given question stated as, If the two firms operating in this market agreed to each supply one-half of the quantity a monopolist would supply, the contract would specify that: Nextflix supplies 250 subscriptions and Flixbuster supplies 250 subscriptions.
Answer:
A) incumbent firms are slow to change.
Explanation:
This business model type is said to be low cost and also can be seen and tested to be highly accessible to buyers and others goods in the market. Disruptive innovation is a business model that deals with the introduction of a new product or service into a market, at a lower cost and affordable that other products or its competitors, hereby luring prospective or buyers to buying the new product; displacing the leaders or top performers in the market. Disruptive innovation is highly favoured because the incumbent firms are slow to change.
Answer:
$162
Explanation:
As we know that
1 square feet = 0.1 square yard
which means
10,000 square feet = 0.1 × 10,000
= 1,000 square yards
And, the given cost is $27
So, the cost for 6,000 square yards would be
= (6,000 square yards × $27) ÷ (1,000 square yard)
= ($162,000) ÷ (1,000 square yard)
= $162
We applied the unitary method for above calculation.
Answer:
see below
Explanation:
1. Personal Savings
The sole trader can invest his savings into his business for expansion. A sole trader who is confident about his business's prospects will be prepared to invest additional savings into the business for growth. The use of savings relieves them from the strain of interest payments and enables them to retain full control over the business.
2. Sale of Assets
Should a sole trader require funds to expand their business, they opt to dispose of some of their assets. If the trader does not have savings or retained earnings and have a property registered in their name, they may decide to sell it to raise capital.
