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3 years ago

Capital budgeting decisions are risky because all of the following are true except:

Business

1 answer:

storchak [24]3 years ago

4 0

Answer:

E. They rarely produce net cash flows.

Explanation:

When a company engages with <em>capital budgeting</em>, it assesses potential and planned investments. The goal of each investment is to produce a difference in cash inflows vs. cash outflows, which is the net cash flow.

Therefore, all investments have a tendency of producing a cash flow, since that is the reason why companies opt for capital budgeting (investments) in the start.

It is true that the outcome of capital budgeting is uncertain. Also, it requires significant financial resources, and is a long-term decision.

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Explain why taking a monotonic transformation of a utility function does not change the marginal rate of substitution (MRS).

fredd [130]

Explanation:

Monotonic transformation refers to changing the quantity of both the variables in a way that their ranking or order is preserved. Monotonic transformation of a utility function does not change the marginal rate of substitution as the order of preferences remains intact with the monotonic transformation. It's just the level of utility that either increases or decreases with such a transformation. The indifference curve shape remains the same. With monotonic transformation, consumer moves from a lower to higher or higher to lower indifference curve.

7 0

4 years ago

All of the following are correct about what managers should know about firms based in a country with a national competitive adva

elena-s [515]

Answer: c. Success is guaranteed as the firm implements its chosen international business-level strategy.

Explanation:

Firms that have a hold on national competitive advantage have to consider that which favours the market they operate in within where they are based in carrying out their decision or policies considering their business. It would be unprofitable when the firm chooses it's policies for success based an international business level strategy as this may seems to fail. Strategies that should be considered are those that focuses on what impact it would play in the market of the nation.

6 0

3 years ago

Read 2 more answers

When jorge became one of three final candidates for a managerial position with a large pharmaceutical company, the hiring manage

kodGreya [7K]

B we did this at school it’s not hard nor easy

6 0

3 years ago

Frito-Lay produces more than 20 varieties of chips. Suppose a retail store offers to stock five of Frito-Lay chips products in e

Strike441 [17]

Answer:

TURF Analysis--Total Unduplicated Reach and Frequency

Explanation:

TURF Analysis or Total Unduplicated Reach and Frequency Analysis, is a statistical research methodology that enables the assessment of potential of market research for a combination of products and services. It analysis the number of customers reached by a particular communication source and how often does that happen.

8 0

3 years ago

5. As the price of laptops increases from RM2,000 to RM3,500 per unit, the quantity

zepelin [54]

Answer:

-0.523 and inelastic

Explanation:

The computation of the price elasticity of demand using mid point formula is given below:

= (change in quantity demanded ÷ average of quantity demanded) ÷ (percentage change in price ÷ average of quantity demanded)

where,

Change in quantity demanded is

= Q2 - Q1

= 150 units - 200 units

= -50 units

And, average of quantity demanded would be

= (150 units + 200 units ) ÷ 2

= 175 units

Change in price would be

= P2 - P1

= 3,500 - 2,000

= 1,500

And, average of price would be

= (3,500 + 2,000) ÷ 2

= 2750

So, after solving this, the price is -0.523

Since the price elasticity of demand is less than 1 so it would be inelastic

4 0

3 years ago