Answer:
a) Present value of the investment: $198,936
b) if the present worth of the investment which are discounted at MARR rate is positive, the investment is worth investing, while if the present value of the investment is negative, Investor should not invest.
c) As calculated in (a), present value of the investment is $198,936, Bailey should buy the gang punch
Explanation:
Please find detailed of calculation in (a) which is shown as below:
Present value = Present value of saving in raw material - Present value of increase in labor cost - Initial investment = [ (12,250/ 5%) x (1-1.05^-15)] - [ (3,200/ 5%) x (1-1.05^-15)] - 105,000 = $198,936.
Answer: option C
Explanation: THIS CAN BE REPRESENTED AS FOLLOWS :-
If we eliminate the product there would be no sales, no variable expenses and therefore, no contribution.
sales = nil
-variable expenses= <u>nil</u>
contribution = nil
- fixed expenses = <u>56,000</u>
NET LOSS = <u> (56000)</u>
.
NOTE :-
Fixed expense = (140,000)*(40%)= 56,000
.
.
Thus increase in loss would be 56000- 50,000=6000
Answer: Option C
Explanation: Social capital refers to the additional success an organization get due to its positive relationships and communication network both within and outside the organisation. It is not a decision making but an ongoing process and is considered necessary in modern business environment.
The media houses could affect the business operations at a high level. Thus, positive relationships with the media houses can bring the organisation an edge over its competitors.
As it is related to relationship building and management it could be facilitated by the social capital.
An excise tax is a <span>federal and/or state tax on specific goods like gasoline, tires, airfare, or cigarettes. Excise taxes are most always included in the price of the product.</span>
Answer:
The total number of firms in this industry will decrease in the long run because increased competition will mean lower profit margins which will lead to some firms earning sub normal profits which will force them to leave the industry.
Explanation:
