Answer:
I will be preferable the first project as their present value is greater than project 2
Explanation:
We will calcualte the discounted cash flow at the given rate of 6% and then compare with the initial invesmtnet
Project 1
-20,000
+8,000 / 1.06
<u>+15,000 /1.06^2</u>
NPV 897.12
If used 5% interest rate
-20,000
+8,000 / 1.05
<u>+15,000 /1.05^2</u>
NPV 1224.49
Project 2
-10,000
+ 3,000/1.06
+ X/1.06^2
<u>+14,000/1.06^3</u>
NPV 897.12
X = -4143.543138
There is a second investment of 4,143.54
If discounted at 5%
-10,000
+3,000/1.05
-4,143.54/1.05^2
<u>+14,000/1.05^3</u>
1192.556311
Difference: 1,192.55 - 1,224.49
Answer:
In economics, the marginal cost of production is the change in total production cost that comes from making or producing one additional unit. To calculate marginal cost, divide the change in production costs by the change in quantity.
That is an explanation of which of fayol's principles of management: <span>Subordination of Individual Interest
According to this principle, all the employees must put the company's priority over another, including conflict inside the working environment or personal conflicts outside the working environment
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Answer:
B. Price promotion
Explanation:
Ashton by trying to create awareness in his new branch, he is planning to cut price and offer coupons so as to persuade customers to purchase from him. The practice is known as price promotion.
Price promotion is the combination of two words "price" and "promotion".
Price refers to the amount of money paid by consumers to purchase goods and services.
Promotion on the other hand refers to activities that persuade the consumers to buy a product and communicate the product’s features and benefits.
Combining the two definitions, pro promotion refers to a discount in price which will encourage consumers to purchase a product.
Managers are responsible for helping the business achieve goals.