Answer:
Thus, payback period is = 3 years and 1.61 months
Explanation:
Payback period is the time it will take the project cash flows to recover the initial investment. The payback period for the project in question will be,
<u>Year</u> <u>Cash flow</u> <u>Remaining Amount</u>
1 850 (6900 - 850) = 6050
2 2400 (6050 - 2400) = 3650
3 3100 (3650 - 3100) = 550
As the year 4 cash flow is 4100, we know that the amount will be recovered in year 4. However, we will calculate the exact period or months in year 4 that it will take to recover total initial investment assuming that cashflow occurs at constant rate through out the year.
Time = 550 / 4100 * 12 = 1.61 months
Thus, payback period is = 3 years and 1.61 months
Answer:
B) Signaling theory suggests that expensive testimonials from celebrities indicate a higher quality product.
Explanation:
In advertisement, signalling theory uses a biological approach that celebrities, which are seen as successful, wealthy, powerful, etc. transmit a sense of quality to the products that they endorse or recommend.
For example, Mr. T's breakfast cereal was very successful during the 1980s because customers identified Mr. T with being strong, healthy and powerful. Most people are usually followers, not leaders, and we like to follow our famous celebrities.
Answer:
<em>D. Frequency marketing program</em>
Explanation:
Frequency Marketing <em>is a marketing strategy used to attract and maintain long-term consumers. Frequency marketing covers activities such as daily interval ads, offering loyal consumers discounts, planning events.</em>
As the term indicates, to keep their clients, this form of marketing plan needs to be conducted out at regular intervals. Frequent marketing is a great instrument for ensuring consumer preservation.
This is an established fact that an existing customer provides a business with more profits than a prospective customer, i.e. the sum of money and income generated by an existing customer is more than that generated by a potential customer.
This is the concept of financial arithmetic. To get the average cost when six units we shall proceed as follows;
Total cost of producing 5 units will be:
(average cost)*(number of units)
=5*30
=$150
Given that the marginal cost of producing the sixth unit is $60, then the total cost of producing six units will be:
150+60
=$210
Answer:
consume more dvds and fewer burgers
Explanation:
we are not given a price for hamburgers and DVDs but in order to understand the question we can assign them $10 each.
- Mavis consumed 3 hamburgers, the marginal utility from last hamburger = 10, so utils per dollar = 10 / $10 = 1
- She also consumed 5 DVDs, the marginal utility from the last DVD = 15, so utils per dollar = 15 / $10 = 1.5
This means that Mavis should consume more DVDs until the utils per dollar equal the utils per dollar of hamburgers, or consumer less hamburgers until the utils per dollar increase to match the DVD's. As Mavis consumes more DVDs, her marginal utility will diminish, while consuming less hamburgers will increase the marginal utility obtained from them.
