Answer:
Comment for statement A - The firm must still compare the IRR with the opportunity cost of capital when using the IRR rule. Therefore, even with the IRR method, the appropriate discount rate must still be specified.
Comment for statement B - There should be a higher discount rate on risky cash flows than the rate used to discount less risky cash flows.
Making use of the payback rule is equivalent to using the NPV rule with a zero discount rate for cash flows before the payback period and an infinite discount rate for cash flows thereafter.
Explanation:
a)
“I like the IRR rule. I can use it to rank projects without having to specify a discount rate”
The firm must still compare the IRR with the opportunity cost of capital when using the IRR rule. Therefore, even with the IRR method, the appropriate discount rate must still be specified.
b.
“I like the payback rule. As long as the minimum payback period is short, the rule makes sure that the company takes no borderline projects. That reduces risk”
There should be a higher discount rate on risky cash flows than the rate used to discount less risky cash flows.
Making use of the payback rule is equivalent to using the NPV rule with a zero discount rate for cash flows before the payback period and an infinite discount rate for cash flows thereafter.
Answer:
The question has below options:
A. The unsold cars count as inventory investment for 2017. 2018 GDP is not affected.
B.The unsold cars count as consumption spending in 2018.
C. The unsold cars count in the inventory investment category for both years and count as consumption spending in 2018.
Option B is the correct answer
Explanation:
The unsold stock of 10 cars in 2017 is classified as investment since the cost of producing them is expected to yield returns in 2018 when they have been sold.
However, the unsold stock of 2017 becomes 2018 consumption of GDP since it relates to household expenditure in 2018, as a result it is accorded such classification.
It cannot be classified as government expenditure as the government is not the one purchasing the vehicle
Also, the ten cars have nothing to do with import or export as they are trade within the domestic economy
<span>Human capital is the term that refers to the knowledge, education, training, skills, and expertise of a firm's workers.
</span>Gary Becker, an economist from the University of Chicago has popularized this term. <span> The human capital includes assets of individuals that can be used to create economic value for the individuals, their employers, or their community: </span>
Answer:
A.
Dr Vacation pay expenses $40,000
Cr Vacation pay payable $40,000
B.
Dr Pension expenses $222,750
Cr Cash $185,000
Cr Unfunded pension liability $37,750
Explanation:
Regling Company Journal entries
A.
Dr Vacation pay expenses $40,000
Cr Vacation pay payable $40,000
B.
Dr Pension expenses $222,750
Cr Cash $185,000
Cr Unfunded Pension liability $37,750
Answer:
Please find the detailed answer as follows:
Explanation:
After reviewing Digby's current strategy, top five sources of competitive advantage for digby are as follows:
- Increase demand through TQM initiatives
.
- Offer attractive credit terms
.
- Seek excellent product designs, high awareness, and high accessibility
.
- Seek high plant utilization, even if it risks occasional small stockouts
.
- Reduce cost of goods through TQM initiative.
Related concepts to understand the problem.
Competitive advantage. A competitive advantage is an improvement over competitors gained by contribuiting consumers greater value.
