Answer:
Explanation:
If a company(Marriott in this case) uses a single hurdle rate to decide whether an investment should be undertaken or not, some projects that need to be accepted would end up being rejected and vice versa. For example,
if Marriott's hurdle rate is 10% and it's evaluating
project A with a 15% cost of capital &
project B with a 6% cost of capital .
Evaluation:
Project A would probably lead to a negative NPV because the cost of capital is higher (meaning it is riskier than the firm) hence could be rejected, but using the company hurdle rate of 10% to evaluate it could make its NPV positive. This would ignore the actual additional risk of the project.
Answer:
Imports create greater competition in the domestic marketplace.
Explanation:
Comparative advantage is defined as the ability of a company to produce goods at a lower opportunity cost than other competitors. They can now sell the goods at lower prices.
If the company in this scenario have competitive advantage in producing electronics then it is xheap for them to produce.
When they export electronics and import again, it can only mean that the imported electronics have a competitive edge that the company wants to take advantage of. For example higher quality than what is available locally.
Answer:
3. portfolio analysis
Explanation:
Some example is portfolio analysis are:
Unilever has a portfolio of supplying tea and ice cream.
Gillette provides shaving products and batteries.
Protfolio analysis is the process by which the portfolio or products of a business are reviewed. It is done to analyse risk and returns. When portfolio analysis is done frequently it helps the business make changes in portfolio allocation based on changing market needs.
Answer:
$0.50
Explanation:
Marginal cost is the additional expense associated with consuming, selling, or producing one extra unit. For Susan, the marginal cost is the extra cost incurred by purchasing the 10th gallon of gasoline.
To obtain the marginal cost:
The cost of 9 gallons plus cash wash
=(9 x $2) + $1.50= $19.50
cost of 10 gallons plus cash wash
=(10 x $2) cash wash is free= $ 20
The extra cost associated with the additional unit (marginal cost)
= $ 20- $ 19.50
=$0.50
Answer:
Policy uncertainty
Explanation:
Policy uncertainty is a class of economic risks associated with erratic economic policy of the government of a particular country. Policy uncertainty discourages investment and raises the investment risk factor of an economy.
It can come from unstable and unexpected monetary or fiscal policy of a regime or unpredictable regulatory framework.
