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vfiekz [6]
3 years ago
13

QUESTION 1 When several alternative investment proposals of the same amount are being considered, the one with the largest net p

resent value is the most desirable. If the alternative proposals involve different amounts of investment, it is useful to prepare a relative ranking of the proposals by using a(n) a. average rate of return index b. present value index c. price-level index d. consumer price index
Business
1 answer:
Yuri [45]3 years ago
3 0

Answer:

The answer is option B) If the alternative proposals involve different amounts of investment, it is useful to prepare a relative ranking of the proposals by using a present value index.

Explanation:

Present Value Index is a used to measure the feasibility and efficiency of investment options.  It is the ratio of the Net Present Value of a project to the initial option required for it.

When several alternative investment proposals of the same amount are being considered, the one with the largest net present value is the most desirable.

However, If the alternative proposals involve different amounts of investment, it is useful to prepare a relative ranking of the proposals by using a present value Index.

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Wheeler Company can produce a product that incurs the following costs per unit: direct materials, $11.00; direct labor, $25.00,
Oksi-84 [34.3K]

Answer:

$3.20 per unit

Explanation:

In this question, we have to compare the cost between two cases

In the first case, the total cost per unit would be

= Direct materials per unit + direct labor per unit + overhead cost per unit

= $11 + $25 + $17

= $53

In the first case, the total cost per unit would be

= Purchase price + overhead cost

= $48.55 + $17 × 45%

= $48.55 + $7.65

= $56.20

So, the difference would be

= $56.20 - $53

= $3.20 per unit

3 0
3 years ago
company's perpetual preferred stock currently sells for $92.50 per share, and it pays an $8.00 annual dividend. If the company w
andrew11 [14]

Answer:

The firm's cost of preferred stock is  9.10%

Explanation:

The cost of preferred stock with the flotation of 5% would be the dividend payable by the preferred stock divided by the adjusted current market price(adjusted for flotation cost)

The dividend per year is $8

The adjusted price of the stock=$92.50*(1-f)

where f is the flotation cost in percentage terms i.e 5%

adjusted price of the stock is =$92.50*(1-5%)=$ 87.88  

Cost of preferred stock=$8/$87.88*100  = 9.10%

4 0
3 years ago
A bank will often hold government securities as an asset. If a bank were to sell S500,000 in government securities to an individ
sleet_krkn [62]

Answer:a.

It would increase by $500,000 multiplied by the reciprocal of the required reserve ratio.

Explanation:

A bank will often hold government securities as an asset. If a bank were to sell S500,000 in government securities to an individual who paid for the bond in cash and the bank placed this cash in its vault, by how much would the money supply change as a result  -  It would increase by $500,000 multiplied by the reciprocal of the required reserve ratio.

The money supply is the entire stock of currency and other liquid instruments circulating in a country's economy and is given by the formula:

MONEY SUPPLY = RESERVES X MONEY MULTIPLIER

Therefore the bank reserves increasing in the scenario will increase money supplier by the effect of the money multiplier or the reciprocal of the required reserve ratio.

5 0
3 years ago
The slogan of Nature's Source Products is "Loving the Planet." This is more than just an advertising message. The company hires
mylen [45]

Answer: A. Brand alignment

Explanation:

Brand alignment simply means when a company ensures that the brand's promise is being uphold through its marketing assets and the way the company interacts with the customers.

Brand alignment is a way of making sure that the brand's promise are delivered and met. Since the slogan of Nature's Source Products is "Loving the Planet." and the company employs people who are committed to sustainability and enjoyment of nature, it implies that the company is using brand alignment.

3 0
3 years ago
During each stage of a product's life cycle, the types and levels of sales, profits, and competition rise, peak, and eventually
Oliga [24]

Answer:

a

Explanation:

this is due to the initial uptake for the product . it levels to repeat customers but others drop off the sales due to other reasons

4 0
3 years ago
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