Answer:
The firm should purchase the machine.
Explanation:
let the expected rate of return be x :
x = 2000 + 20000x% = 2300
= 300/20
= 15%
Therefore, The expected rate of return (15%) exceeds interest rate (10%) of fund, the firm should purchase the machine.
Expanding your trade credit can increase your sales volume. More time to checkout increases a customer's purchasing power and the number of products they purchase extends trade credit to your customers.
Giving your customers extra time to pay their bills can bring many benefits to your small business. Offering credit to customers is a way to increase sales and provides consumers with payment flexibility. While there are benefits to extending a loan, there are also issues to be aware of.
Generate more sales. The number one reason to consider financing your customers is that it makes your business more attractive to customers. People often want to buy something if they can buy it on credit.
Credit means the right to defer or incur a debt and defer payment of a debt offered or granted primarily for personal, family, or household purposes.
Learn more about credit at
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I would personally say A, since paying a creditor wouldn't cause assets to decrease, and neither would D or C.
Answer: Budgetary slack
Explanation:
The budgetary slack is one of the type of situation occur in an organization when the manager is reducing the overall revenue of the budget and expand the budget expenses in the company.
It is also known as the long range planning process for achieving the given production line.
According to the given scenario, Harold is guilty due to the budgetary slack as Harold is the manager of the food and the beverage firm and handles the packaging department in an organization and he overstating the actual requirement in his packaging department.
Therefore, Budgetary slack is the correct answer.
The answer to your question is "rent control". Hope this helps!