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3 years ago

Why should employees be wary of participating in the grapevine in a business

1 answer:

8 0

Although the grapevine supplements what formal communication does not provide sometimes, and creates a sense of unity among employees, they should be wary due it carries partial information and it's more based on rumors; so it's not always trustworthy, especially when it comes to business, because important decisions depend on reliable sources to ensure favorable outcomes.

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(Ignore income taxes in this problem.) Beaver Corporation is investigating the purchase of a new threading machine that costs $1

BaLLatris [955]

Answer:

The NPV of the machine is closest to -$34.48

Explanation:

The net present value (NPV) of the project is the present value of the future net cash flows expected from the project less the initial cost of the project. The cash inflows from this project are the cost savings that are in a form of annuity and an amount for salvage value receivable at end of year 6. Thus, the NPV of the project is,

NPV = 4000 * [ (1 - (1+0.12)^-6) / 0.12 ] + 3000 / (1+0.12)^6 - 18000

NPV = - $34.48

4 0

4 years ago

Read 2 more answers

Ronald suffers from dementia that impacts his brain function, but he also has healthy periods of time when his mind is fully fun

vova2212 [387]

Answer:

2. False

Explanation:

Capacity to a contract refers to whether the person to a contract is legally competent to enter into such a contract.

For instance, lunatics, drunkards, minors, criminals and person of unsound mind are deemed incapable of entering into a contract.

A person diagnosed with dementia, which impairs his decision making would normally be regarded as incapable to signing a contract.

But, capacity is ascertained as per the situation i.e at the time the contract is signed or entered into.

In the given case, Ronald entered a contract while he was sane and in healthy state of mind. His judgement at the time of entering such a contract wasn't impaired by dementia.

Thus, the contract will be legally enforceable as per the law.

6 0

3 years ago

Gatwick Ltd. has after tax profits (net income) of $500,000 and no debt. The owners have a $6 million investment in the business

Ugo [173]

Answer:

Return on equity would increase from 8.33% to 9.50%

Explanation:

The tax rate of 40% is missing from the question.

Return on equity prior to share repurchase=$500,000/$6,000,000

Return on equity prior to share repurchase=8.33%

With the issue of debt finance of $2,000,000, the after-tax interest expense is computed thus:

after-tax interest expense=$2,000,000*10%*(1-40%)=120000

adjusted net income=$500,000-$120,000=$380,000

new common stock=$6,000,000-$2,000,000=$4,000,000

adjusted return on equity=$380,000/$4,000,000=9.50%

8 0

3 years ago

Recession and inflation have decreased the value of your investments. This is an example of ______.a. economic risk. b. industry

Fantom [35]

Answer:

Explanation:

Economic risk is the risk that macroeconomic conditions would affect the value of investment .

Examples of economic risks are Recession and inflation

5 0

4 years ago

A company is considering the purchase of a new machine for $48,000. Management predicts that the machine can produce sales of $1

dolphi86 [110]

Answer:

Accounting rate of return is 10%

Explanation:

Given data

new machine = $48,000

sales = $16,000

time = 10 year

depreciation = $4,000 / year

factory overhead = $8,000 + depreciation $4,000

net income = $2400

tax rate = 40%

to find out

accounting rate of return for the machine

solution

we know that

Accounting rate of return = after tax net income / average investment

so here we know net income after tax = $2400

so we find investment first

Average investment = (Initial investment) / 2

Average investment = 48000 / 2 = $24000

Accounting rate of return = after tax net income / average investment

Accounting rate of return = 2400 / 24000 = 0.1 = 10%

Accounting rate of return is 10%

6 0

4 years ago