Pam is pursuing a market penetration strategy.
It is one of the four alternative growth strategies in the Ansoff Matrix. It is focused on selling the existing products or services in the existing markets to have a higher market share. The main goal of the market penetration strategy is to launch a product, also used to measure the product if it is doing well in the market.
Answer:
Systematic management
Explanation:
Systematic management is an approach of management which focus on the process of the management instead of the final outcome. The objectives of this approach to the management are:
To establish the particular procedures and processes to be used in the completion of the job task.
So, the systematic management is the one which focus on the internal operations as managers are concerned with the growth brought about through the Industrial Revolution.
Answer:
(a) What is the net present value of this potential investment?
Net present value of Investment is $(3,903)
(b) Should you invest in this machine?
We should not invest in this investment because Net present value of this investment is negative by discounting Minimum acceptable rate of return.
Explanation:
Present Values:
Revenue $144,146
O&M Cost ($48,049)
Initial Investment <u>$(100,000)</u>
Net Present value $(3,903)
Working :
Present Value Calculation = P x ( (1- ( 1 + r )^-10) / r
Revenue = $21,000 x ( (1- ( 1 + 0.075 )^-10) / 0.075 = 144,146
O&M Costs = $7,000 x ( (1- ( 1 + 0.075 )^-10) / 0.075 = 48,049
Answer:
securities
bond
stock
Explanation:
Corporations source their finances from issuing securities. If they borrow from banks or other corporations or from investors, then that is considered debt. They can also borrow debt by issuing bonds which are fixed securities which can either be paying coupons periodically or not. If they do not have debt financing, they can sell part of company ownership to investors by issuing stocks and pay dividends to them in return.
Security deposit = $1,600
Rent for 11 months $1,600*11 = $17,600
In November instead of paying rent to Mary Beth, Carl replaced the water heater. This water heater would have costed Mary Beth $1,100 to purchase and install, but as this was done by Carl, Carl did not pay rent ($1,600). So, for the month of November Mary Beth’s income is $1,100.
Rental income for the last year that is to be reported can be calculated as below: -
($1,600*11)+$1,100+$1,600 = $20,300
Answer: $20,300 to be reported as rental income of the last year.