1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
iren [92.7K]
3 years ago
5

Sometimes a cost must be incurred to obtain an abandonment option. this cost should be incurred if and only if the value of the

option exceeds its cost. the value of an abandonment option can be estimated by first calculating the value of the project considering the possibility of abandonment, then subtracting the value of the project if it could not be abandoned. the difference in values is the value of the abandonment option. true or false
Business
1 answer:
Gennadij [26K]3 years ago
8 0

Answer: False

An abandonment option is a feature which protects each party’s financial interest in the event an investment fails to earn. It gives a party a right to withdraw from a contract before its maturity.

An abandonment value, on the other hand, is the liquidation value of the asset and can be calculated by subtracting the net present value of the investment from the initial value. If it is negative, then an abandonment option is exercised.


You might be interested in
Which of the following are virtues according to Aristotle?
ELEN [110]

The correct option is B, which is courage. According to Aristotle justice, courage, temperance, and so on are the virtues.

<h3></h3><h3>Who is Aristotle?</h3>

Aristotle was an ancient Greek philosopher, who made important contributions to logic, criticism, rhetoric, physics, biology, psychology, mathematics, metaphysics, ethics, and politics.

Thus, According to Aristotle courage is a virtue. Aristotle was an ancient Greek philosopher, who made important contributions to logic, criticism, rhetoric, physics, biology, psychology, etc.

Learn more about Aristotle here:

brainly.com/question/5399979

#SPJ1

8 0
2 years ago
Ash, Inc., has declared a dividend of $6.60 per share. Suppose capital gains are not taxed, but dividends are taxed at 20 percen
lakkis [162]

Answer:

$89.32

Explanation:

For computing the ex-dividend price, first we have to determine the after-tax dividend which is shown below:

After-tax dividend would be

= Dividend per share × (1 - tax rate)

= $6.60 × (1 - 0.20)

= $5.28

Now the ex-dividend price would be

= Sale price of stock - after-tax dividend

= $94.60 - $5.28

= $89.32

Hence, we considered all the information which is mentioned in the question.

7 0
3 years ago
An employee receives a phone call from someone saying they are from the bank. The person claims the purpose of the call is to ve
zloy xaker [14]

The kind of call received by the employee reflects the phishing activity.

<h3>What is a Bank?</h3>

A bank is referred to as a financial institution that allows an individual to deposit and withdraw cash and allow them to borrow funds with a fixed interest rate for the purpose of investment.

Phishing activity is referred to as scams that are done online by asking for personal financial information from customers in the name of banks.

In this case, also an employee receives a phone call from someone saying that talking from the bank was asking for passwords and account numbers on the name for online security information reflects the element of Phishing.

Learn more about Phishing, here:

brainly.com/question/24156548

#SPJ4

8 0
2 years ago
Foods Galore is a major distributor to restaurants and other institutional food users. Foods Galore buys cereal from a manufactu
Oksanka [162]

Answer:

The appropriate solution is:

(a) 2828 cases each time

(b) $4005656.85

(c) $3609800

Explanation:

The given values are:

Annual demand,

D = 200,000 cases

Per case cost,

C = $20

Carrying host,

H = 10 \ percent\times 20

  = $2

Ordering cost,

S = $40

(a)

The economic order quantity will be:

⇒ Q^*=\sqrt{(\frac{2DS}{H} )}

On substituting the values, we get

         =\sqrt{[\frac{(2\times 200000\times 40)}{2} ]}

         =\sqrt{\frac{16000000}{2} }

         =2828

(b)

According to the question,

The annual ordering cost will be:

=  (\frac{D}{Q^*}) S

=  (\frac{200000}{2828}) 40

=  2828.85 ($)

The annual carrying cost will be:

=  (\frac{Q^*}{2})H

=  (\frac{2828}{2} )2

=  2828 ($)

The annual purchase cost will be:

=  D\times C

=  200000\times 20

=  4000000 ($)

Now,

The total inventory cost will be:

=  2828.85+2828+4000000

=  4005656.85 ($)

(c)

According to the question,

Order quantity,

Q = 10000 cases

Per case cost,

C = $18

Carrying cost,

H = 10 \ percent\times 18

   = 1.8

The annual ordering cost will be:

=  (\frac{D}{Q} )S

=  (\frac{200000}{10000} )40

=  800 ($)

The annual carrying cost will be:

=  (\frac{Q}{2} )H

=  (\frac{10000}{2} )1.8

=  9000 ($)

The annual purchase cost will be:

=  D\times C

=  200000\times 18

=  3600000

Now,

The total cost of inventory will be:

=  800+9000+3600000

=  3609800 ($)

8 0
3 years ago
. To reduce the effects of headlights glare at night you should look:
malfutka [58]

Answer d

Explanation Aceable

6 0
3 years ago
Read 2 more answers
Other questions:
  • Use your understanding of the strategic management process to complete the sentences below.
    8·1 answer
  • The Balance of Payment is an. System.
    8·1 answer
  • Paula wants to buy stocks in a publicly traded company that deals in networking equipment. However, the company is not listed on
    7·1 answer
  • The following is a saving and investing plan. Is it diversified? Deposit $1,000 in a basic savings account. Purchase a savings b
    11·2 answers
  • Mario's is a pizza and pasta producer that experiences increasing opportunity cost. (a) Draw a production possibilities frontier
    11·1 answer
  • The company's net income (loss) for the year was $11,000 and its cash dividends were $4,000. It did not sell or retire any prope
    13·1 answer
  • If a company revenue is 50 billion usd a year, how much money does it make per hour
    9·1 answer
  • Cullumber Company has these comparative balance sheet data: CULLUMBER COMPANY Balance Sheets December 31 2017 2016 Cash $ 16,350
    11·1 answer
  • Wilson Dover Inc. The total value (debt plus equity) of Wilson Dover Inc. is $500 million and the face value of its 1-year coupo
    8·1 answer
  • The demand for toys produced by the Miki Manufacturing Company has been collected in the Microsoft Excel Online file below. Use
    6·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!