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Answer:
$850
Explanation:
Data provided in the question:
Initial investment = $15,000
Expected annual net cash flows over four years, R = $5,000
Return on the investment = 10% = 0.10
Present value of an annuity factor for 10% and 4 periods, PVAF = 3.1699
The present value of $1 factor for 10% and 4 periods = 0.6830
Now,
Net present value = [ R × PVAF ] - Initial investment
= [ $5,000 × 3.1699 ] - $ 15,000
= $15,849.50 - $ 15000
= $849.50 ≈ $850
The answer would be the stockholders w=equity minus
Answer:
Foreign outsourcing
Explanation:
Foreign outsourcing is a business practice by which a company based in a certain region or country hires another company outside of the region to produce good and perform services that could have been done within. We could also define it as the importation of products or service that could have produced domestically. Most times foreign outsourcing are done to reduce cost of production or service delivery, but one common risk that could be experienced in foreign outsourcing is the loss of control over the goods produced or the services provided.
Therefore, the strategy by Quistor Inc. illustrates foreign outsourcing.
A multidomestic strategy is the most appropriate strategy for international operations because it drives economies of scale as far as possible and provides a middle-of-the-road product that appeals to the smallest number of consumers in every market.
True / False
Answer: False
Explanation:
Middle of the road products are products which may only be returned unopened. Many are therefore with no warranty.
Economies of Scale- An economics term that describes a competitive advantage that large entities have over smaller entities. Here we observe that there are cost reductions of products because the company increased its production.
Competition of products and services in the international environment may require one or more of these four basic strategies to enter and thrive; (1) global standardization strategy, (2) localization strategy, (3) transnational strategy, and (4) international strategy.
Each of these strategies has pluses and minuses.
The question above follows under localization strategy — multidomestic strategy .
In a multidomestic strategy - we see a firm whose strategic features aims to maximise benefits of meeting local market needs through extensive customisation of its products and services to the local market. Decision-making style of this strategy is decentralised such that demands of products and feedback are exclusively theirs and thus local businesses are treated as separate businesses. Strategies for each country probably are not mutually exclusive. Example of companies with this strategy include ms NESTLE, MTV etc.
Multidomestic strategy forces a firm to emphasis on differentiating its product and service offerings to adapt to the surrounding local markets.
Multidomestic strategy thus isn't the most appropriate strategy for to drive International operations.
