FisherCo is intending to invest in a new project. The hurdle rate is the minimum rate of return the firm will accept on this project.
The hurdle rate is the minimum rate of return a project must have in order for a project to be accepted. It can also be referred to as the discount rate or the required rate of return or the cost of capital.
When the hurdle rate is greater than the internal rate of return of a project, the project would be rejected. If the hurdle rate is less than the internal rate of return of a project, the project would be accepted.
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Answer:
c. paying lower prices to its suppliers.
Explanation:
A : clearance of discontinued inventory.
Clearance is most often used when a shop wants to clear a particular stock line. reduce sell price with effect in gross margin
B : selling products with a lower markup.
Markups are the ratio of gross profit to sales price.
D : increased competition resulting in a lower selling price.
lower prices will lead to higher sales volumes, which may make up for the lower profit margin
Answer:
Degree of operating leverage = 7.8
Explanation:
given data
sales = 2,080 units
per unit price = $50
Variable expenses = 25%
total fixed expenses = $68,000
solution
we get here Degree of operating leverage that is express as
Degree of operating leverage = Sales - variable cost ÷ (sales - variable cost - fixed cost) .......................1
here
Sales = 2080 × 50 = 104000
and
Variable cost = 104000 × 25% = 26000
so now put value in equation 1 we get
Degree of operating leverage = 
Degree of operating leverage = 7.8
Answer:
Status Symbols
Explanation:
According to Oxford dictionary; a status symbol is "a possession that is taken to indicate a person's wealth or high social or professional status."
Hence status Symbols are external displays of the possessors' wealth and social status. These goods can not be possessed by people who do not belong to that social status or profession.
Answer and explanation:
In the corporate world, outside or external financing resources refer to all the sources from where a business can obtain the necessary capital to handle its operations without using the firm's assets. Common examples of external financing resources are:
- Venture Capitals:<em> funding performed at an initial stage of companies after making research on the market and the company.
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- Term loans:<em> provided by financial institutions that profit from the interest rate established in the loan or assets as collateral in case of payment failure.
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- Debt Factoring:<em> short-term financing in which an organization sells its account receivables at a discount.</em>
