Answer:
a. Selection decisions
Explanation:
Capital Budgeting decisions is basically divided in two broad categories that are:
Screening Decisions: This is the decision made by any company while making a capital budgeting decision that the company will accept the project based on companies specific criteria.
It might be based on cash flow, or required return etc:
Preference Decisions: When the company evaluates two or more projects then it makes a decision as to which project shall be favorable. Then the priority list is created.
There is no selecting decisions in the capital budgeting decisions.
Answer: I will notify the auto manufacturer.
Explanation:
I will notify the auto manufacturer if I find myself in such situation. The impact of a good communication in organization should not be underestimated. The ideal thing to do is to make the auto manufacturer aware of the present situation. Communication effectively ensures that the auto manufacturer receive information regarding the transaxle and helps in building a positive relationship.
Not informing the auto manufacturer about the situation with the transaxle will lead to lack of trust and enhance a negative relationship when he eventually founds out about it. One's reputation is also affected if one doesn't inform him and the trans axle eventually breaks down as envisioned.
It is essential that I give him timely updates and adequate information regarding the project.
Cause and effect in the context of business cycle refers to actions done for a project in the business. Cause and effect may also refer to the stocks or market proceeds (e.g. Because of ____________, the proceeds were higher/lower).
Answer:
Total PV= $25,072.57
Explanation:
Giving the following information:
Cash flows:
Cf1= $6,100
Cf2= $11,100
Cf3= $17,300
Discount rate= 15%
<u>To calculate the present value, we need to use the following formula on each cash flow:</u>
PV= Cf / (1+i)^n
PV1= 6,100 / 1.15= 5,304.35
PV2= 11,100 / 1.15^2= 8,393.19
PV3= 17,300 / 1.15^3= 11,375.03
Total PV= $25,072.57
Answer:
The answer is $ 200,000
Explanation:
The net income reported by Goodman Auto for the year was,$475,000 - $275,000 = $ 200,000.
The net income is difference between revenue earned by the company and expenses incurred in order to earn this revenue. In the problem goodman auto revenue is equal to 475,000 and expense are 275,000. So the difference between 475,000 and 275,000 will be reported as net income.
