<span>Answer:
The net present value is the sum of the three present values.
NPV = PV of initial investment + PV of 7 year annuity + PV of lump sum salvage
NPV = -48900 + 14600 x (1 - 1 / (1 + 12%)^7) / 12% + 12000/(1+12%)^7 = 23,159.04</span>
That statement is false.
They are different. Purchase discounts are given by the sellers to the buyers in order to reduce the amount that the buyers have to pay if they complete the payment within a specific period of time. Trade discount on the other hand, is given by manufacturers to the sellers or re-sellers.
Answer:
To maximize her profit, Jennifer should abandon the product.
Explanation:
To maximize the profit Jennifer should keep marginal benefit as higher as she can, this could happen keeping marginal revenue higher and marginal cost lower as much as she can.
In this case marginal cost is higher than the marginal revenue, which is resulting as a marginal loss. Each extra batch being sold will add a loss of $10 ($110-$120).
Jennifer should abandon the product because it will reduce the average marginal benefit or total profit gradually.
Answer:
D) Internal Revenue Service
Explanation:
Since creditors are supplying raw materials and lending the money to the corporation, they are highly interested in the financial statement.
Since the management of the firm is operating the company, they have the right to know the financial statement.
Since the stockholders are the company owners and provide money, they are the primary people to know the financial position of the firm.
Finally, the <em>Internal Revenue Service</em> is the government body. IRS is helping to measure the treasury of the U.S. government. Therefore, there is no or little connection between the company and the IRS. As they do not gain anything from the company except tax, they do not have any interest in analyzing the company's financial statements.
Answer:
If all fails, slow the spread of bad practice.
Explanation:
Ethics is defined as guiding principles that an individual uses to define right and wrong. An ethical person has principles and moral standards.
In this case Nikolai is asked to do something the is unethical, though he knows it is wrong and not in the best interest of the company he has to do it.
His boss will take disciplinary action against him if he does not comply.
The next best option is to use the strategy of if all fails, slow the spread of bad practice.
