Answer:
Amount after 15 years = 183255.011
Explanation:
Below is the calculation to find the amount after 15 years:
Annuity amount or early deposited amount = $5200
Time period = 15 years
Interest rate = 11.3 %
Now we have to find the amount after 15 years:
Amount after 15 years = Annuity [((1 + r)^n - 1) / r ]
Amount after 15 years = 5200 [((1 + 11.3)^15 - 1) / 11.3% ]
Amount after 15 years = 183255.011
Answer:
this would cause total costs to Increase and the break-even quantity to Increase.
Explanation:
Total Cost is the Sum of All Manufacturing and Non-Manufacturing Cost of a product.
Advertising expense before adjustments are at $500. The cost of advertising does not vary with the sales quantities therefore this is a fixed cost.
Therefore an Increase in the advertising expense causes an increase in Total cost figure.
Break even quantity is a function of Fixed Costs divided by Contribution per unit.The break even quantity will definitely change. By increasing the fixed costs (<em>Advertising Expense</em>), the Break even quantity will increase.
In the long run, if inputs are increased by 10 percent and output increases by 20 percent, then diseconomies of scale are said to exist. It is because diseconomies of scale is likely to happen in the long run for a business with increasing inputs without decreasing the cost of production. It can happen when the increase in production is dependent on one part that needs to be completed but there is a delay on producing the parts. Another reason is that the cost of shipping may increase base on how far will be the distance and the weight of the product.
Answer:
Licensing is a good option to enter a foreign market when: ... Two of its competitors together control 50 percent of the market. Whenever Brental raises or lowers the prices of its products, the other two companies quickly imitate its action.
Answer:
e. The NPV method assumes that cash flows will be reinvested at the cost of capital, while the IRR method assumes reinvestment at the IRR. Explanation:
Under the NPV method that is the Net Present Value method, discount rate used is cost of capital of a company, that is Weighted Average Cost of Capital. This is to ensure that the company is able to meet its current financing cost.
Under the IRR method the rate is calculated at which the return of investment and cost of such project or investment is equal, if it is more than cost of capital the project is acceptable.
Therefore, statement e stating that the NPV method uses the cost of capital and IRR uses the IRR rate is correct.
