Answer:
E) existing factory has enough capacity to handle demand for the new products as well as the existing products.
Explanation:
If the existing factory doesn't have enough capacity to produce both the new product and existing ones, then if doesn't matter if the technology used is the same, or the new product is an extension of an existing product line, or existing human resources possess the abilities and knowledge required, or even if the product design is already complete or not.
If the factory's production capacity cannot handle the new product, then the company needs to expand the existing factory's production capacity or build a new facility.
Answer:
Fiscal policy
Explanation:
Describes changes to government spending and revenue behavior in an effort to influence the economy. By adjusting its level of spending and tax revenue, the government can affect economic outcomes by either increasing or decreasing economic activity.
Answer and explanation:
<em>Forgetting to pay debts has a detrimental effect on the length and interest payment of a loan</em>. The more a consumer falls behind in the repayment of a debt the longer it will take to pay off the total amount owed. Besides, the interest rate is recalculated by the financial institution implying more interest will be paid.
Therefore, forgetting to pay debts must be avoided. <em>Setting automated payments is a good measure to avoid such circumstances.</em>
Answer:
The amount of total current assets that will be reported on the budgeted balance sheet is $40,000.
Explanation:
Total current assets
= Cash + Accounts receivable + Finished goods inventory + Raw materials inventory
= $4,000 + $16,000 + $12,000 + $8,000
= $40,000
Therefore, The amount of total current assets that will be reported on the budgeted balance sheet is $40,000.
Answer:
Explanation:
If a company(Marriott in this case) uses a single hurdle rate to decide whether an investment should be undertaken or not, some projects that need to be accepted would end up being rejected and vice versa. For example,
if Marriott's hurdle rate is 10% and it's evaluating
project A with a 15% cost of capital &
project B with a 6% cost of capital .
Evaluation:
Project A would probably lead to a negative NPV because the cost of capital is higher (meaning it is riskier than the firm) hence could be rejected, but using the company hurdle rate of 10% to evaluate it could make its NPV positive. This would ignore the actual additional risk of the project.
