All categories

3 years ago

Firms that make investment decisions based on the payback rule may be biased toward rejecting projects:__________

Business

1 answer:

Artist 52 [7]3 years ago

6 0

Answer:

c. with late cash inflows.

Explanation:

The Payback method focus on the time it takes for the Cash Inflows of the Project to equal the Initial investment made into the project. This means that projects which takes a short period (early cash flows) are preferred over those that take a long period (late cash flows) for the cash flows to equal the initial cost.

You might be interested in

Jojo drives a truck for a living but is attending Ashford to earn a degree in business administration because what he really wan

bixtya [17]

Answer:

The correct answer is letter "A": Wait until he enters an area with an available wired network.

Explanation:

It is common that while driving on the road there might be some areas where internet connection can be lost because the antennas of the service provider our mobile lines work with are not nearby. Then, just like in Jojo's case, we should wait to enter into an area where there is enough signal so we can use our mobile internet as usual.

5 0

3 years ago

A firm agreed to pay its workers $2525 an hour in 2016 and $4141 an hour in 2017. The price level for these years was 241 in 2

NemiM [27]

Answer:

(a) 10.4%; 16.73%

(b) 6.33%

Explanation:

Given that,

Wages paid to the workers in 2016 = $25 per hour

Price level in 2016 = 241

Wages paid to the workers in 2017 = $41 per hour

Price level in 2017 = 245

Real wage rate in 2016:

= (Nominal wages ÷ Price level) × 100

= ($25 ÷ 241) × 100

= 0.104 × 100

= 10.4%

Real wage rate in 2017:

= (Nominal wages ÷ Price level) × 100

= ($41 ÷ 245) × 100

= 0.1673 × 100

= 16.73%

Therefore, the real wage increase received by these workers in 2017 is calculated as follows:

= Real wage rate in 2017 - Real wage rate in 2016

= 16.73% - 10.4%

= 6.33%

Hence, these workers do get a raise between the two years.

8 0

3 years ago

The following data are given for Harry Company:

Anon25 [30]

Question

Kindly note that the original question is not complete. The closest question found similar to the original is given below.

The following data are given for Harry Company:

Budgeted production 1,001 units

Actual production 920 units

Materials:

Standard price per ounce $1.904

Standard ounces per completed unit 10

Actual ounces purchased and used in

production 9,476

Actual price paid for materials $19,426

Labor:

Standard hourly labor rate $14.09 per hour

Standard hours allowed per completed unit 4.3

Actual labor hours worked 4,738

Actual total labor costs $76,993

Overhead:

Actual and budgeted fixed overhead $1,155,000

Standard variable overhead rate $27.00 per standard labor hour

Actual variable overhead costs $132,664

Overhead is applied on standard labor hours.

Determine the labour rate variance.

Answer:

Labour rate variance $10,234.58 unfavorable

Explanation:

The labour rate variance is the difference between the standard labour cost allowed for the actual hours worked and the actual labor cost for the same hours

Actual labour hours = 4,738

4,738 hours should have cost (4,738 × $14.09) = 66,758.42

but did cost (actual cost) 76,993.00

labour rate variance 10,234.58 unfavorable

Labour rate variance $10,234.58 unfavorable

8 0

3 years ago

apone has the following estimates for the upcoming year: Activity Cost Pool Estimated Overhead Cost Estimated Activity Machine-r

KatRina [158]

Answer:

Activity rate for testing $66.22 per test

Explanation:

we will divide the cost pool over the expected activity base

In this case we divide the $124,500 over the 1,880 tests

$\frac{Activity\: Pool}{Activity \: base}= Activity\:Rate$

124,500 / 1,880 = 66,2234 = 66.22

7 0

3 years ago

Students arrive at the Adminsitrative Office at an average of one every 24 minures, and their requests take on average 12 minute

larisa [96]

Solution and Explanation:

arrival time = 24 per minute, processing time = 12 minutes, number of servers = 1 ( work for 8 hours a days)

a. arrival rate = 60 divide 24 = 2.5 customer per hour, service rate = 60 divide 12 = 5 customers per hour

therefore, the probability that the operator will be busy = 2.5 divide 5 = 0.5

thus, the percentage of idle time = 1 minus 2.5 divide 5 = 0.50

Thus, the percenatge idle time is 50%

b. the average spent by a student waiting in a line = $2.5 / 5(5-2.5)$

= 0.20 hours.

Thus, on an average a student spent 0.20 hours waiting in line.

c. the average number in waiting line = 0.5 customers

d. the probability for the given condition to happen is 0.25, 25%

4 0

3 years ago