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NemiM [27]
3 years ago
14

Kermit plans to open a boutique. The initial investment is $10,000. He has to spend $1,500 in annual operations and maintenance.

The boutique generates $3,000 in revenues every year. Kermit uses a 10 year planning horizon and a MARR of 12%. The correctly calculated Rate of Return for this project is %. Enter the ROR as a percentage with 2 decimals. For example 2.34% will be entered as 2.34. Do NOT use the % symbol. Based on the calculated ROR should Kermit invest in the boutique?

Business
1 answer:
EastWind [94]3 years ago
8 0

Answer:

8.14.

Explanation:

The Rate of Return is 8.14 from my calculations which you can find in the attached file.

Now since the Rate of return is 8.14. Which is less than MARR of 12%, it shows that investment is not good.

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A company acquires a subsidiary and will prepare consolidated financial statements for external reporting purposes. For internal
NemiM [27]

Answer:

It is a relatively easy method to apply.

Explanation:

When accounting for a subsidiary, equity method is followed, whenever the shareholding percentage is equal or more than 20%.

But here, the parent company uses, initial value method for internal reporting.

Under initial value method the value of investment in subsidiary is recorded at cost, and then adjusted at year end at fair value, this clearly shows the gain or loss at each year end from such investment as per market norms.

There is no statutory requirement to follow such initial value method for internal reporting.

The correct reason therefore, is:

It is a relatively easy method to apply.

7 0
4 years ago
Say a certain manufacturing industry has 63.1 thousand jobs in 2008, but is expected to decline at an average annual rate of 1.7
ss7ja [257]

Answer:

so correct option is  b. -27%

Explanation:

given data

job manufacturing industry = 63.1 thousand

annual rate = 1.7 thousand

time period = 10 year

solution

the total loss of jobs over the 10 years will be:

total loss = 1.7 × 10

total loss = 17  thousand jobs

so that the percent change will be

percent change  =  \frac{-17}{63.1}\times100

percent change  =  -27 %

so correct option is  b. -27%

5 0
3 years ago
Read 2 more answers
Companies like my​ gym, which seek to do business in new markets for manufacturing​ and/or marketing​ purposes, have many potent
Afina-wow [57]

Companies like my​ gym, which seek to do business in new markets for manufacturing​ and/or marketing​ purposes, have many potential​ Entry modes at their disposal.

<h3>What is marketing​ ?</h3>

Marketing is the process of discovering, developing, and delivering value in the form of goods and services to fulfill the needs of a target market; it may also include the selection of a target audience.

Brand marketing is a method of promoting your product or service by promoting your entire brand. Essentially, it conveys the tale of your service or product by stressing your entire brand.

Distribution, finance, market research, pricing, product and service management, promotion, and selling are the seven functions of marketing in the marketing sector.

Properly studied and targeted marketing will bring in new and recurring customers.

Current and previous consumers' feedback might help identify areas for development.

To know more about marketing​  follow the link:

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4 0
2 years ago
Phil's Dinor purchased some new equipment two years ago for $32,600. Today, it is selling this equipment for $22,000. What is th
Sergio039 [100]

Answer:

(C) $19,776.80

Explanation:

The company will pay taxes for the difference between book value and sale value at disposal:

book value after 2 years:

It will be acquisition less accumulated depreciation, which is the sum of the MACRS depreciation rate for this two years

32,600 (1 - 0.20 - 0.32) = 32,600 x 0.48 = 15,648

sales price: 22,000

taxes: (22,000 - 15,648) x .35

          6,352 x 0.35 = 2,223.2

after tax cash flow: 22,000 - 2,223.2 = 19,776.8

3 0
3 years ago
A sales forecast based on an estimate of total market potential for a specific market and projecting the market share a business
Anna35 [415]

Answer:

The correct answer is: Build-up approach .

Explanation:

The Build-up approach estimates the sales potential of the company by calculating how much of a product could be purchased in a given period by a potential buyer in a specific geographic region. The calculation is then multiplied by the number of potential customers, adding the sum of all the considered geographic areas.

3 0
3 years ago
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