Answer:
Product differentiation and advertising are profitable ventures only when:
the gain in total revenue outweighs the extra cost
Explanation:
When Company XYZ differentiates its product from competitors' through trademarks and other differentiating factors and embarks on advertising, it must watch out for cost overrun. The undertaking for the product differentiation and advertising should be able to generate more revenue than the costs. This will make Company XYZ determine that its differentiation and advertising make economic meaning by producing positive NPV.
Answer:
The present Value of my winnings = $4,578,716.35
Explanation:
An annuity is a series od annual cash outflows or inflows which payable or receivable for a certain number of periods. If the annual cash flow is expected to increase by a certain percentage yearly, it is called a growing annuity.
To work out the the present value of a growing annuity,
we the formula:
PV = A/(r-g) × (1- (1+g/1+r)^n)
I will break out the formula into two parts to make the workings very clear to follow. So applying this formula, we can work out the present value of the growing annuity (winnings) as follows.
A/(r-g)
= 460,000/(12%-3%)
= $5,111,111.11
(1- (1+g/1+r)^n
1 - (1+3%)/(1+12%)^(27)
=0.8958
PV = A/(r-g) × (1- (1+g/1+r)^n)
$5,111,111.11 × $0.8958
= $4,578,716.35
The present Value of my winnings = $4,578,716.35
A summary is simply known as a short explanation of a work's content. The type of short informational report that I have been asked to write is a summary.
A summary report can consist of;
- The author's major supporting ideas.
-
They show the author's purpose in writing etc.
A summary often start with an introductory sentence that talks about the text's title, author and main point of the text as you see it.
A summary is often written in your own words and it should have the ideas of the original text.
Learn more from
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Answer:
The primary difference between those two concepts is focus that each term has. The first one focus on the relationship between the level of production and the level of return. While the second one focus on the relationship between the level of production and the amount of factors used for that production.
Explanation:
One the one hand, the law of diminishing marginal returns is a concept known in the microeconomics theory due to the fact that it establishes the relationship between the productivity and the income for every aspect of it. Meaning that, when the productivity increases because of the increase of only one factor of production then the income will start to slowly decrease, confirming that when only one factor is increased the production will start to be incomplete and the return will decrease for that.
On the other hand, the law of diminishing marginal rate of technical substitution indicates the relationship between the level of output and the different factor used to produce. Meaning that, it shows how to keep the level of output the same while making changes in the amount of factors used.
Answer:
$305,000
Explanation:
Net income is the amount of money available to a company after the deduction of expenses from revenue. It is calculated as;
Net income = Revenues - Expenses
Given that;
Revenues = $630,000
Expenses = $325,000
Net income = $630,000 - $325,000
Net income = $305,000
Therefore the net income reported by Blue Spruce Corp. For the year is $305,000
