<span>The division of labor that underpins the supermarket cultivates "impersonal ties".
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The division of labor refers to the partition of assignments in any framework with the goal that members may practice. People, associations, and countries are invested with or obtain particular abilities and either combinations or trade to exploit the capacities of others in addition to their own.
And if we compare the division of labor in open market place and supermarket place, you will see that in open market place the relations are personal and in supermarket, the relations are said to be impersonal and largely invisible.
The right answer for the question that is being asked and shown above is that: "b. benefits." Fern agrees to sell her guitar for $30 because she expects to gain more than she benefits from this sale.
This kind of mental structure is called a script.
The same term is used in the movie and theater industry - actors receive a script which will tell them exactly what they need to do. The same thing goes here - Jenna knows that the people working in the restaurant will behave as if they had a script to follow.
Answer:
1. NPV calculation
Option 1 ( with Greewood fertilizer) : $2.256
Option 2 ( with Peter's Fertilizer) : $3.835
2. Rate of return calculation:
Option 1: 45.12%
Option 2: 95.875%
Option 2 should be chosen as it provides higher NPV.
Explanation:
1. The detailed calculation for each option is:
Option 1: Present value of sales proceed - initial cost = (8/1.05^2) - 5 = $2.256
Option 2: Present value of sales proceed - initial cost = (10/1.05^5) - 4 = $3.835.
2. The detailed calculation for each option is:
Option 1: NPV/Initial cost = 2.256/5= 45.12%
Option 2: NPV/Initial cost =3.835/10 = 95.875%
To assess which option should be picked with the assumption of infinite time horizon, NPV should be key driver. As Option 2 has higher NPV, Option 2 is chosen.
