Answer:
Machine A = $ 1.22 million
Machine B = $ 0.70 million
Explanation:
The Equivalent Annual Annuity of the machines is as follows
Machine A = $ 1.22 million
Machine B = $ 0.70 million
Thus the Machine A with a higher Equivalent Annual Annuity of $ 1.22 Million is the better machine.
If the company accepted the better machine which is Machine A, the value of the company increases by $ 3.57 Million (Which is the net total of discounted cash Inflows = Net Present value of Machine A)
See attached file for details.
According to Porter's model of business activities, interactions across value activities are called linkages.
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What was Porter's model of business activities?</h3>
A tool for analyzing a company's competitive environment is Porter's Five Forces Framework. It uses industrial organization economics to extract five forces that control the level of competition and, consequently, the profitability of an industry.
Five Forces in Porter the competition's model
- The threat of brand-new competitors.
- The threat of using different goods or services.
- supplier bargaining strength.
- Buyer bargaining strength.
- The rivalry between contemporary rivals.
The goal of Porter's Five Forces Model is to assess a market, or business sector potential's for profit. According to Michael Porter, there are five forces that have the ability to affect each business sector.
To know more about Michael Porter refer to: brainly.com/question/13007758
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A) empirical classification.
B) genetic classification.
C) combined classification.
Hope this help u :)
Many business owners prefer corporations over other form of business organization because corporation has several advantages:
1. Corporation is a legal entity that is created by the state.
2. It is for an unlimited life span.
3. Transfer of ownership is easy.
4. Corporate form also increases the credibility of a company.
5. Companies also find it easier to raise money in a corporation.
