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Ostrovityanka [42]
3 years ago
15

A company has developed a new smart clock. If the clock is successful, the present value of the payoff (at the time the product

is brought to market) is $17 million. If the clock fails, the present value of the payoff is $5 million. If the clock goes directly to market, there is a 50 percent chance of success. Alternatively, the company can delay the launch by one year and spend $900,000 to test-market the clock. Test-marketing would allow the company to improve the clock and increase the probability of success to 75%. The appropriate discount rate is 10%. Should the company conduct test-marketing?
a. No, because NPV is lower by $748,643
b. No, because NPV is lower by $559,164
c. Yes, because NPV is higher by $827,273
d. Yes, because NPV is higher by $674,350
e. Yes, because NPV is higher by $754,281
Business
1 answer:
timama [110]3 years ago
5 0
The correct answer is letter C
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A stock that sold for ​$ per share at the beginning of the year was selling for ​$ at the end of the year. If the stock paid a d
Anestetic [448]

Answer:

137.77%

Explanation:

obviously the numbers are missing, so I looked for a similar question:

"A stock that sold for ​$26 per share at the beginning of the year was selling for ​$52 at the end of the year. If the stock paid a dividend of ​$9.82 per​ share, what is the simple interest rate on the investment in this​ stock? Consider the interest to be the increase in value plus the dividend."

  • total interest received (your gain) = (year end market value - purchase price) + dividends received = ($52 - $26) + $9.82 = $35.82
  • initial investment (purchase price) = $26

simple interest rate of return on investment = total interest received / initial investment = $35.82 / $26 = 1.3777 or 137.77%

7 0
3 years ago
Goods with many close substitutes tend to have a. more elastic demands. b. less elastic demands. c. price elasticities of demand
kotykmax [81]

Answer:

The correct answer is a. more elastic demands.

Explanation:

There are some goods whose demand is very price sensitive, small variations in their price cause large variations in the quantity demanded. It is said of them that they have elastic demand. The goods that, on the contrary, are not sensitive to price are those of inelastic or rigid demand. In these large variations in prices can occur without consumers varying the quantities they demand. The intermediate case is called unit elasticity.

The elasticity of demand is measured by calculating the percentage by which the quantity demanded of a good varies when its price varies by one percent. If the result of the operation is greater than one, the demand for that good is elastic; If the result is between zero and one, its demand is inelastic.

The factors that influence the demand for a good to be more or less elastic are:

1) Type of needs that satisfies the good. If the good is of first necessity the demand is inelastic, it is acquired whatever the price; On the other hand, if the good is luxurious, the demand will be elastic since if the price increases a little, many consumers will be able to do without it.

2) Existence of substitute goods. If there are good substitutes, the demand for good will be very elastic. For example, a small increase in the price of olive oil can cause a large number of housewives to decide to use sunflower.

4 0
3 years ago
Faith Cassen has recently been hired as the manager of Gibraltar Coffee Shop. Gibraltar Coffee Shop is a national chain of franc
IrinaK [193]

Answer:

a.       I Disagree with Faith's method of handling this situation because she has not followed the internal control principle of safeguarding of assets. Stealing is a serious issue. An employee who can justify taking a box of tea bags can probably justify “borrowing” cash from the cash register.

b.      I Agree with Faith's method of handling this situation because Faith has followed the internal control principle of assignment of responsibility by making one employee responsible for the cash drawer and followed the internal control principle of segregation of duties (preparing the orders) from the accounting (taking orders and payments).

c.       I disagree with Faith's method of handling this situation because Faith has not followed the internal control principle of segregation of duties. It is true that faith has made one employee responsible however after cash counting another employee or Faith himself remove the cash register tape and compare the balance with cash drawer for effective internal control. Also, Faith’s standard of no mistakes may encourage the cashiers to overcharge a few customers in order to cover any possible shortages in the cash drawer.

6 0
3 years ago
Baron Corporation has two sequential processing​ departments: Assembly and Shaping. The Shaping Department reports the following
Oksana_A [137]

Answer:

Concerteza é a letra "B"

Explanation:

Espero que esteja errado, mas espero ter ajudado!

8 0
4 years ago
Think about different ways people are compensated for work, including salary compensation, hourly wages, and contracted compensa
DENIUS [597]

Answer:

c

Explanation:

salary is a regular fixed payment that a person earns for performing work during a specific period of time.

8 0
3 years ago
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