Answer:
a. If two similar properties are for sale, a buyer will purchase the cheaper of the two.
Explanation:
The principle of substitution justifies the idea that the maximum value of a property will be set by the selling price of an equally valuable and desirable substitute property. In this case of property sale, if an area has two similar houses and one is being sold for $912,000 and the other is priced at $105,000, buyers will most likely go for the cheaper one. There is no reason to pay more money if they will be getting a similar property at low cost.
Answer:
c. it ignores all cash flows after the payback period
d. it ignores the time value of money.
Explanation:
Payback period as far as capital budgeting is concerned can be regarded as time that is required for recouping of funds that is been expended during setting up of an investment, or the funds required to get to break-even point. It should be noted that weaknesses of the payback period are;
✓. it ignores all cash flows after the payback period
✓ it ignores the time value of money.
Answer:
If you are single, head of household or married filing separately, your contribution limit of $5,500 begins to phase out when your modified AGI reaches $61,000 and is zero beginning at $71,000. If you are married, filing jointly, or a qualified widow or widower, your contribution limit of $5,500 begins to phase out when your modified AGI reaches $98000 and is zero beginning at $118,000. So since they dont have an income limitation and are not covered by another pension plan, they both should be able to contribute $5,500 for a combined result of $11,000 to a Roth IRA
Answer:
Bill is probably a(n)
SBU manager.
Explanation:
Bill Wessels, as a strategic business unit (SBU) manager, is responsible for strategic planning, profitability, and performance of his business unit. The SBU is a separate identifiable business unit in an entity with other SBUs. It has a manager, who is largely autonomous in pursuing the business mission of the unit. It manages and accounts for its resource utilization separately from other units. Its performance is evaulated based on set criteria.
