Answer:
The law of diminishing marginal utility.
Explanation:
Marginal utility is basically satisfaction derived from consuming an extra unit of product. According to the law of diminishing marginal utility as consumption increases the marginal utility derived from each additional unit decreases.
So when we consume 1 chips marginal utility is high, then as more is consumed we still get some positive utility out of it but at a decreasing rate now. At some point this utility equals zero after which it starts declining as more chips are consumed because it is not providing any satisfaction now. Therefore the chips should be consumed only up to the point where the marginal utility equal zero.
The ratio could increase with the purchase of $170,000 of inventory on account.
Answer:
she is acting like a person who is a risk lover
Explanation:
we get missing option they are as
A) irrationally B) like a person who is risk neutral C) like a person who is a risk lover D) like a person who is risk averse
so here correct answer is (c) like a person who is a risk lover because
here when she gain gain of $100,000.00 and than with 50.00% chance of winning amount $200,000.00 or it will be zero
As a risk lover means a risk taker. Risks may be uncertain or positive or negative in the future.
A risk taker or risk lover is a person's ability to take a risk on investment or gambling to earn a high return. The result can be positive or negative.
Whatever the risk lover takes, he or she accepts the risk.
Answer:
The best approach is to employ Risk Assessment
Explanation:
Executing Risk Assessment separately for either physical security or technological security makes implementing recommendations easier as regards that which has a higher priority of protection in comparison to the duo mentioned.
Answer:
IRR = 12.92%
Explanation:
<em>The IRR is the discount rate that equates the present value of cash inflows to that of cash outflows. At the IRR, the Net Present Value (NPV) of a project is equal to zero
</em>
<em>If the IRR greater than the required rate of return , we accept the project for implementation </em>
<em>If the IRR is less than that the required rate , we reject the project for implementation </em>
A project that provides annual cash flows of $24,000 for 9 years costs $110,000 today. Under the IRR decision rule, is this a good project if the required return is 8 percent?
Lets Calculate the IRR
<em>Step 1: Use the given discount rate of 10% and work out the NPV
</em>
NPV = 9000× (1-1.10^(-4)/0.1) - 27,000 =1528.78
<em>Step 2 : Use discount rate of 20% and work out the NPV (20% is a trial figure)
</em>
NPV = 9000× 1- 1.20^(-4)/0.2 - 27000 = -3701.38
<em>Step 3: calculate IRR
</em>
<em>IRR = a% + ( NPVa/(NPVa + NPVb)× (b-a)%</em>
IRR = 10% + 1528.78/(1528.78+3701.38)× (20-10)%= 0.12923
= 0.129230153 × 100
IRR = 12.92%
