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svetlana [45]
4 years ago
9

A company planning to market a new model of motor scooter analyzes the effect of changes in the selling price of the motor​ scoo

ter, the number of units that will be​ sold, the cost of making the motor​ scooter, the effect on Net Working​ Capital, and the cost of capital for the project. They predict that the breakminuseven point for sales price for the motor scooter is​ $2,480. What does this​ mean?
Business
1 answer:
Andrew [12]4 years ago
3 0

Answer:

A. If the motor scooter is sold for $2.480, then the net present value (NPV) for the product will be zero.

Explanation:

As we believe that The break even point is the point where the organization has no income gained and no loss incurred While the present net value is the value that determines whether or not the projects will be approved after considering the discounted cost.  

It means that if the original investment is less than the present value then the proposal is otherwise refused, the break even point is where the net present value is zero

Hence, the first option is correct

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If a bond's yield to maturity is less than its coupon rate, the bond will sell at a _____, and increases in market interest rate
KiRa [710]

If a bond's yield to maturity is less than its coupon rate, the bond will sell at a premium, and increases in market interest rates will decrease this premium.

If the bond's coupon rate is lower than YTM, the bond will be sold at a discounted price. If the bond's coupon rate is higher than its YTM, the bond is sold at a premium. If the bond's coupon equals YTM, the bond is sold at face value.

If the coupon is higher than the yield, investors should expect the bond's capital value to fall over the remaining term. Therefore, the price of the bond must be higher than its face value. If the bond's coupon rate is lower than its lifetime, the bond's price increases over its remaining lifetime.

If the interest rate falls below the coupon, the bond can be sold at a premium above face value. Interest rates on bonds vary according to prevailing interest rates and perceived risks of the issuer. Suppose he has a 10-year bond for $5,000 with a 5% coupon.

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7 0
1 year ago
Harry was unable to complete a task assigned to him by his superior. He also refused to work overtime. Consequently, Harry's sup
Svetlanka [38]

Answer:

self-managing team.

Explanation:

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5 0
3 years ago
How to archive older page on wayback archivemachine?
77julia77 [94]
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3 years ago
An oligopoly firm is similar to a monopolistically competitive firm in that both firms face the prisoner's dilemma. both firms a
DerKrebs [107]
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8 0
3 years ago
Selected accounts with some amounts omitted are as follows Work in Process Oct. 1 Balance 22,700 Oct. 31 Finished goods X 31 Dir
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Answer: $249,900‬

Explanation:

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3 0
3 years ago
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