Answer:
Consider the following analysis.
Explanation:
A capital budgeting decision for Southwest airline should consider the following aspects: -
Assessment of the cash flows gained on investment into the Cuba market adjusted for time value of money. This evaluation of profitability, assessment of demand in Cuba, assessment of investment per traffic unit in Cuba forms an integral part of the investment decision. Major methods to evaluate profitability are NPV (Net Present Value) and IRR (Internal rate of Return). The NPV method calculates the difference in the initial investment and present value of cash flows over the period of the project. IRR method considers the discount rate at which NPV of project cash flows is zero. A project with positive NPV and higher IRR is considered.
The proposed investment should ensure that the interests of all stakeholders are safeguarded i.e Creation of Value proposition for shareholders as well as ensuring timely repayments to existing lenders of the project
.
Raising of capital for the Cuba project considering the company’s existing policies on debt and equity and cost benefit analysis. An equity funding would be costlier alternative than debt funding. However, a debt funding may increase the risk of lowered post tax profits and decreased returns to the shareholders, while an equity funding would allow the company an option in deferring the distribution of the profits or part-distribution of profits to the shareholder by deciding on the dividend payout ratio.
Management of aircrafts and other major assets of the company – The company should ensure that the existing aircrafts are effectively utilized for providing the airline services in Cuba. Acquisition of additional aircrafts along with other assets (warehousing facility for repairs etc.) should also be taken into consideration.
An adequate working capital management ensuring smooth day to day operations should be undertaken. This includes management and allocation of funds for day to day operations like fuel expenses, airport operating charges, repair and maintenance of aircrafts etc.
Answer:
B) cannot expect to collect the $500 because he had a preexisting duty to arrest the inmate.
Explanation:
Law enforcement officers cannot collect rewards or bounties on escaped prisoners or wanted criminals.
One of the roles and duties of law enforcement officers is to arrest criminals (either escaped or suspected), and they cannot collect a reward for doing their job.
Answer:
D) when marginal returns become negative.
Explanation:
Generally diminishing marginal returns lead to lower returns, but when capacity constraints are extreme, then adding one extra unit of labor or capital might result in a lower total production, and diseconomies of scale.
For example, you own a pizza place. One worker can produce 10 pizzas per hour, 2 workers can produce 19 pizzas per hour, 3 workers will produce 25 pizzas per hour, but a fourth worker can barely fit in the kitchen and total production will fall to 24 pizzas per hour. When the addition of one extra unit of labor or capital generates a negative return, the marginal return will result in a lower output.
The same applies to a larger company, e.g. a company has a sales team of 50 which generate 400 sales per week. Since the company wants to increase sales they hire 25 more salespeople and total sales increase to 520, but the market is already being saturated, and the salespeople are starting to compete against each other. But management believes they can still increase their sales and hires 25 more salespeople, but the total amount of sales doesn't increase and might even decrease. Instead of working as a team, the salespeople are working against each other and they are ruining other salespeople's sales in order to try to close it themselves.
Just because you keep adding workers, it doesn't mean that more work will get done.
Pre-inspection agreement is pre-sale inspection. As pre-inspection agreement is in essence in a contract between two parties, so it can be called contract agreement.