Answer:
ADDITIONAL REVENUE & ADDITIONAL COST
Explanation:
If Korey has made the decision to bring on an extra hand to help run the store in the afternoons and the new employee will make $435 per month; then there are 2 changes that will happen to the monthly net income
1. Increased Revenue: Since the new employee will be bringing in additional revenue of $435, then the direct impact of that is an increment in the revenue line of the income statement
2. Increased Costs: Secondly, this change will affect Korey's monthly net income in the area of cost because he has to pay the extra hand some sort of monthly salaries which will have a reducing effect on profit.
a. a discount of 2 percent will be allowed if the invoice is paid within 10 days of the invoice date.
So for example if the bill is $100 "2/10 net 30" and you pay within 10 days, you get a 20 cent discount and the balance is $9.80. If you pay in 30 days, the full 10 dollars is due.
Answer:
C. Payback is 10 years
Explanation:
Payback is the number of years it will takes to recover the initial investment, which in this case translates to: how long will it take for Ribelin Corpration to recover the $218,000 investment given the stated cash-flows.
Year Cash-flow Balance
0 (218,000.00) (218,000.00)
1 32,000.00 (186,000.00)
2 18,000.00 (168,000.00)
3 21,000.00 (147,000.00)
4 21,000.00 (126,000.00)
5 21,000.00 (105,000.00)
6 21,000.00 (84,000.00)
7 21,000.00 (63,000.00)
8 21,000.00 (42,000.00)
9 21,000.00 (21,000.00)
10 21,000.00 -
11 21,000.00 21,000.00
12 21,000.00 42,000.00
By end of year 10, total inflows are exactly equal the initial investment, therefore it will take them 10 years
Answer: The answers to the questions are provided below.
Explanation:
1. The Required Rate of Return(RRR) is the absolute minimum return on an investment that an individual or firm would accept for the investment to be considered worthwhile. The required rate of return helps in deciding whether an investment is worth the cost or not.
An expected rate of return helps in knowing out how much one can expect to make from an investment. An expected rate of return is the return on investment that an individual or firm expects to make when investing in a stock.
The RRR is the least possible rate which would entice someone to invest while the expected rate of return is what the person plan to make from that investment and its calculation is based on probability.
When there is difference between the required rate of return and expected rate of return for an asset at a specific period of time, it means that the economic conditions aren't normal as there is either inflation or deflation in the market.
2. The holding period return is the total return gotten from holding an asset over a particular period of time which is known as the “holding” period while the expected return is the return based on probability-weighted average of likely returns from an investment.
3. Diversification is a technique that is applied to reduce risk through the allocation of investments among several financial instrument and industries. Diversification aims to maximize the returns through investment in different sectors because each sector will likely react differently when there's a risk. Investing in more than one asset through diversification is essential because each asset will react differently when a risk occurs.
At the point when both cohesiveness and performance norms are high, productivity will be high.
<u>Explanation</u>:
It is genuine with respect to the impact of gathering cohesiveness and execution standards on bunch profitability.
Gathering cohesiveness is one of the trademark highlights of the gatherings, which is significant from the behaviouristic perspective. Cohesiveness is how much the gathering individuals are pulled in to one another and are persuaded to remain in the gatherings. Cohesiveness characterizes the level of closeness that the individuals feel with the gatherings. It is comprehended as the degree of preferring every part has towards others in the gathering and how far everybody needs to stay as an individual from the gathering.
"Cohesiveness alludes to the degree of solidarity 'in the gathering and is reflected in individuals' adjustment to the standards of the gathering, the sentiment of fascination for one another and needing to be co-individuals from the gathering." Attraction, cohesiveness, and similarity are altogether interwoven. The more the individuals feel pulled in to the gathering, the more noteworthy will be the gathering cohesiveness. The more noteworthy the cohesiveness, the more prominent the impact of the gathering individuals to convince each other to adjust to the gathering standards. The more prominent the congruity, the more noteworthy the character of the individuals to the gathering and the more noteworthy the gathering cohesiveness.
