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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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Answer:

B. investing activities.

Explanation:

Cash flow transactions are categorized into three categories,

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Under Investing activities a company invests the money or cash in some sort of securities, in our case case loan, while investing it gives the money to some third person, then it gets return like interest or dividend on such amount.

Here, the company has lend some money in the form of loan and then it collects the loan, therefore it is investing activity.

Exceptionally if a company is a banking or NBFC companies then it lends money in normal course, and then collects them back in that case it is operating activity.

In general it is

B. investing activities.

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Which of the following is reported as a financing activity in the statement of cash flows? Multiple Choice The payment of intere
Yuki888 [10]

Answer:

The correct answer is A

Explanation:

Financing activities are those activities which involve the cash payments as well as cash receipts, that relate to the external financing of the business and also involve the obtaining of resources from the owners and repay resources to creditors.

The example of financing activities are repayment as well as borrowing of money, issuance of the securities and payment of dividends.

So, from the above options, the one which is reported as the financing activities in the cash flows statement involve is the payment of interest on the bonds payable.

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Which of the following is true regarding optimization models?
liq [111]

Answer:  Option D

       

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Such models are used by organisations as they give near to accurate results which are based on the foretasted input data. Thus, from the above we can conclude that the correct option is D .

4 0
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kvv77 [185]

Answer:

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8 0
3 years ago
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