Answer:
Escalation of commitment
Explanation:
Escalation of commitment is the situation where an individual invest the resources into a course of action which is failing. Resources could be time, energy and money which an individual continue to invest into an investment as the individual do not want to be inconsistent.
So, in this situation, before releasing the payment, he ensures that the targets should be met for the performance. He is avoiding the situation of escalation of commitment bias.
Answer:
Option b (increasing) is the correct choice.
Explanation:
- Business owners may use statistics on either the minority race demographic to select a representative sample of about there workers with either the aspects of the brand living nearby.
- The population group query has also been used to obtain a depend on a number element.
The remaining three options are not relevant to the situation in question. It should be the correct solution to the above.
Answer:
The correct answer is letter "C": life is the total cost divided by the total annual depreciation.
Explanation:
The composite depreciation method uses the straight-line depreciation to rate and average the loss of value in given assets. It divides the useful life figure by the total depreciable cost to arrive at the total depreciation per year. It is helpful to determine the depreciation in a complete class of assets.
Answer:
WACC = 0.18 or 18%
Option b is the correct answer.
Explanation:
The WACC or weighted average cost of capital is the cost of a firm's capital structure that can contain one or more of the following components, namely debt, preferred stock and common equity. The formula to calculate the WACC is as follows,
WACC = wD * rD * (1-tax rate) + wP * rP + wE * rE
Where,
- w represents the weight of each component
- D, P and E represents debt, preferred stock and common equity respectively
- r represents the cost of each component
- rD * (1-tax rate) represents the after tax cost of debt
WACC = 0.2 * 0.16 + 0.8 * 0.185
WACC = 0.18 or 18%
