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Stels [109]
3 years ago
9

pappelbon Enterprises recently acquired a chain of convenience stores offering both fuel and food. Pappelbon is now surprised an

d dismayed to find that the gas pumps have been poorly maintained and will need to be replaced at considerable expense. All of the following statements accurately reflect this EXCEPT: a. Pappelbon overpaid. b. Pappelbon did not fully evaluate the target. c. Pappelbon's management was overly focused on acquisitions. d. Pappelbon's due diligence was not fully effective.
Business
1 answer:
RoseWind [281]3 years ago
5 0

Answer:

Pappelbon Enterprises

All of the following statements accurately reflect this EXCEPT:

c. Pappelbon's management was overly focused on acquisitions.

Explanation:

Acquisitions require effective due diligence to be performed on the target.  Due diligence involves a full evaluation of the company to be acquired.  The evaluation should have uncovered the poor maintenance culture of the acquiree.  When it is established that many of the gas pumps would need replacement, the acquisition cost should have been reduced accordingly. These steps will also enable the management to not overpay for the acquired entity.

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3 years ago
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Business executives often prefer to work with rate of return, so to overcome some of the IRR's limitations the modified IRR was
Ksju [112]

Answer:

Explanation:

MIRR equation is given by :

[(FV +ve cashflow / PV -ve cashflow)^(1/n)] - 1

FV +ve cashflow = Future value of positive cashflow at reinvestment rate

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The Modified Internal Rate of Return is a devised modification for the Internal rate of return, IRR which gives rate of return on percentage and overcomes the limitations of the IRR formula.

5 0
3 years ago
Cost is most plainly visible when spending more money on one thing means that less money can be spent on another thing. True or
SSSSS [86.1K]

The given statement about cost is a true statement as cost becomes most obvious when more money must be spent on one thing, leaving less available for another.

<h3>What is the cost?</h3>

A cost is often the value of the money that was expended during the production or delivery of something or service and is now unavailable for use.

Manufacturing, research, retail, and accountancy all make use of this idea. In business transactions, the cost may be an acquisition cost, in which case the amount of money spent to acquire it is considered to be part of the cost.

Finally, cost becomes most apparent when more money spent on one thing leaves less money for another. This corresponds to a true statement.

As a result, opportunity cost describes a decision we must make in order to make another one.

You have $50, for instance, which you may spend on a date with your partner or on your preferred game. The inability to purchase the game is your opportunity cost if you decide to utilize that money to take your partner out on a date.

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6 0
1 year ago
Dean's Coffee Shop makes a blend that is a mixture of two types of coffee. Type A coffee costs Deon $4.75 per pound, and type B
sergiy2304 [10]

Answer:

type B 50 pounds

type A 94 pounds

Explanation:

First we construct the equation system:

\left \{ {{A_q + B_q = 144} \atop {4.75A_q + 5.9B_q = 741.5}} \right. \\

Now we clear one and replace:

A_q = 144 - B_q\\4.75A_q + 5.9B_q = 741.5\\4.75(144 - B_q) + 5.9B_q = 741.5

And we can solve for type B:

4.75\times 144 - 4.75B_q + 5.9B_q = 741.5\\1.15B_q = 741.5 - 684\\B_q = 57.5 / 1.15 = 50

And now we can solve for quantity of A as well:

A = 144 - 50 = 94

<u>Finally we can check the answer if it is correct:</u>

50 x 5.9 + 94 X 4.75 =

   295       +      446,5‬   = 741,5‬

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3 years ago
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