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EleoNora [17]
3 years ago
15

Suppose you have two friends who have the same underlying ability, took the same courses in college, and have the same GPA. One

of them decides to go to a business school for an MBA, while the other one chooses to pursue a PhD in English literature. Given that the expected earnings of an MBA are much higher than the expected earnings of an English PhD, is one of your friends being irrational?
Business
1 answer:
ioda3 years ago
6 0

Answer:

Rational is based on the logical preference. Being irrational does not means that the choice is made based on monetary preference. It is more logical than monetary.

Explanation:

The two friends took same courses in college but after the completion of college degree one decides to go for MBA and other pursues PhD in English. The expected earnings of MBA are higher than PhD but one of friend who chooses the PhD has not considered the logical decision making based on money. He might have chose the PhD because he is more interested in becoming a professor rather than a business professional.

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Crossroad Corporation is trying to decide whether to invest to automate a production line. If the project is accepted, labor cos
Harlamova29_29 [7]

Answer:

The incremental revenue the company gets is:

= Labor cost decrease - Other cash increase

= 753,000 - 216,000

= $537,000

Depreciation = 105,000/ 9

= $11,667

Annual Cashflows (Year 1 - 9)

= (Incremental revenue - Depreciation) * ( 1 - tax) + Depreciation

= (537,000 - 11,667) * (1 - 34%) + 11,667

= $‭358,386.78‬

Cashflow in year 0

= Cost of equipment + Investment in net working capital

= -105,000 - 24,000

= -$129,000

3 0
3 years ago
One of the best ways for a company to protect itself against suits claiming discrimination or harassment is to ensure that it ha
Alona [7]

Answer:

True

Explanation:

This is because Occasionally, there may be suits involving members of protected groups who claim that the disciplinary action was taken against them because they are members of a protected group, but if you have written policies barring unfair treatment of its staff, and a system for ensuring that the policies are followed then a company can protect itself from losing the suits.

8 0
4 years ago
Read 2 more answers
In​ manufacturing, excess capacity can be used to A. do fewer​ setups, lengthen production​ runs, and drive down inventory costs
Aleksandr-060686 [28]

Answer:

In​ manufacturing, excess capacity can be used todo more​ setups, shorten production​ runs, and drive down inventory costs

Explanation:

Excess capacity refers to a situation where a firm is producing at a lower scale of output than it has been designed for. Context: It exists when marginal cost is less than average cost and it is still possible to decrease average (unit) cost by producing more goods and services

7 0
3 years ago
Oriole Company has an inexperienced accountant. During the first month on the job, the accountant made the following errors in j
Yuki888 [10]

Answer:

Part 1. The purchase of supplies for $760 cash was debited to Equipment $200 and credited to Cash $200.

Merchandise $ 760 (debit)

Cash $ 560 (credit)

Equipment $200(credit)

Part 2. A $530 dividend was debited to Salaries and Wages Expense $800 and credited to Cash $800.

Cash $270 (debit)

Dividend $530 (debit)

Salaries and Wages $ 800 (credit)

Part 3. A payment on account of $700 to a creditor was debited to Accounts Payable $230 and credited to Cash $230

Account Payable $470(debit)

Cash $470 (credit)

Explanation:

Part 1. The purchase of supplies for $760 cash was debited to Equipment $200 and credited to Cash $200.

Derecognise the $ 200 Equipment recored in error.The Cash figure was understated, therefore derecognise a further $560 to reflect the outflow of economic benefits. Lastly the Merchandise or Inventory Account must the recognised. This is the correct asset account to the original transaction.

Part 2. A $530 dividend was debited to Salaries and Wages Expense $800 and credited to Cash $800.

Recognise an equity element - Divident. Assets of cash were overstated therefore recognise the overstated amount of $270. Salaries and Wages Account was recognised in error therefore de-recognise this expense account.

Part 3. A payment on account of $700 to a creditor was debited to Accounts Payable $230 and credited to Cash $230

The transactions was recorded in correct accounts for the debit and credit but with wrong or understated amounts. Recognise a further $230 for Accounts Payable and a further 4230 for Cash

5 0
4 years ago
A designer draws two circles, each of area 3.14 square feet. The centers of the circles are 4 feet apart. Do the circles overlap
puteri [66]

Answer:

No, the circles do not overlap

Explanation:

r = Radius of circle

A = Area = 3.14 square feet

Area of one circle

A=\pi r^2

\Rightarrow 3.14=3.14r^2

\Rightarrow r=1\ \text{ft}

The radius of the each of the circles is 1 ft.

If the circles centers are 4 ft apart then the distance between the curves of the circle will be 2 ft apart.

So, the circles do not overlap each other. This is shown in the diagram.

3 0
3 years ago
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