Answer:
Accept Project A and reject Project B
Explanation:
See the images to get the answer.
Decision: Required rate of return = 16% = Cost of capital.
If Internal rate of return (IRR) > the cost of capital = Accept the project.
If Internal rate of return (IRR) < the cost of capital = Reject the project.
From the basis of the formula, we can accept the project A because the IRR of Project A (19%) is higher than the cost of capital (16%). On the other hand, we can reject the project B because the IRR of Project B (14%) is smaller than the cost of capital (14%).
The answer is A. When both sides agree. You both have to agree to the same thing or there is no comprimise its just two peoples opinions...
Answer:
Customers walking into the fast-food restaurants and joining the shortest queues for food, or selecting a queue from lines of equal length, instead of choosing to wait in longer queues to purchase food.
Explanation:
Answer:
$ 164,450
Explanation:
Opening assets = $879,000
Opening liabilities = $ 749,500
Increase in Assets = $59,900
Increase in Liabilities = $24,950
Closing assets = Opening Assets + Increase in Assets
= $879,000 + $59,900
= $ 938,900
Closing Liabilities = Opening Liabilities + Increase in Liabilities
= $749,500 + $24,950
= $ 774,450
At the end of the current year,
Stockholder's Equity = Total Assets- Total Liabilities
= $ 938,900 - $ 774,450
= $ 164,450
When it comes to the best operating level, all of the above are correct.
The <u>best operating level</u> is where all resources are being utilized effectively and marginal revenue is equal to marginal cost. If there resources are not being utilized effectively, the following will happen:
- Average unit cost increases as a result of underutilization - the units available are not being utilized effectively which means that the company is incurring more cost than it should per good produced.
- Average unit cost increases as a result of overutilization - units are being overused which is forcing the company to incur expenses to replace the overused resources.
At the <u>best operating level</u> however, average cost will be at a minimum because the goods are being used effectively and efficiently.
In conclusion, it is best for a business when they operate at an efficient operating level.
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