Answer:
A) IRR, NPV, Payback period
Explanation:
According to Graham and Harvey's 2001 survey, for capital budgeting decision making, the following capital techniques are used which are described below:
Internal rate of return: It is that rate of return in which the net present value is zero that means initial investment and the present value of the annual cash inflows are equal
Net present value: In this method, the initial investment is subtracted from the discounted present value cash inflows. If the amount comes in positive than the project is beneficial for the company otherwise not.
The computation of the Net present value is shown below
= Present value of all yearly cash inflows after applying discount factor - initial investment
The discount factor should be computed by
= 1 ÷ (1 + rate) ^ years
Payback period: It refers to the period in which the initial investment amount should be recovered. It is denoted in years
The formula to compute the payback period is shown below:
= Initial investment ÷ Net cash flow
Answer:
B) coercive power.
Explanation:
There are two ways of influencing others to follow the instruction or to get the process in the right order.Those two ways are: Reward power and coercive power.
Coercive power: It is the ability of the authority to use power or force against people or subordinates to follow the instruction or to get them disciplined. It is an act of punishment for committing errors so that it does not get repeated.
In the given case, the manufacturer decided to punish resellers for their action. As Manufacturing decided to slow down deliveries and postpone product availability to these resellers.
Answer: This could be explained as follows
Explanation: Fixed cost are the cost which do not change with level of output and variable cost are those which does change with the level of output.
Wage sand salary cost are considered to be fixed as most of the firms pay their employees on monthly basis rather than on hourly or per unit basis.
Travelling cost can be both fixed or variable as per the situation as sometimes the travel is frequent and sometimes it is to be done for special purposes.
Answer:
Charles is classified in the adopter category called "Latecomers"
Explanation:
Latecomers are traditional consumers. For them, buying a new product brings a feeling of extreme psychological discomfort. They do not like news, even flee from it, and consider it immature to buy an innovative article in the market.
Latecomers represent 16% of consumers, are insecure to adopt new things, do not like to try new things and do not follow fads. Being traditionalists, they always perform the same way and only adopt innovation when there is no other alternative. Like Charles, who only bought the color TV because his old tv stopped working.
Answer:
$2,254
Explanation:
The computation of the amount of the check is shown below:
= Sale value of merchandise - returned goods - discount amount
where,
Sale value of merchandise is $2,500
Returned goods is $200
And, the discount is 2% of $2,300 = $46
So, the amount of the check is
= $2,500 - $200 - $46
= $2,254
We simply applied the above formula so that the correct amount could come
