Answer:
The investors are exemplifying the economic idea that Some People are rational
Explanation:
People tend to be rational when making decision that results in an optimal level of benefit.
Answer:
Queen $32,850
Stevens $180,150
Explanation:
Queen Stevens Net Income
available (distributed)
Net Income $213,000
Interest on Capital (6%) $4,500 $6,300 <u>($10,800)</u>
$202,200
Salary Allowance $117,150 <u>($117,150)</u>
$85,050
Remaining $85,050 $28,350 $56,700 ($65,050)
(in ratio 1:2)
Total Net Income $32,850 $180,150 ($0)
distributed
Answer: False
Explanation:
Present value is not the value of cash flows that occur at different points in time but rather the value of cash flows at the current point in time. The values can therefore be added up to determine the value of a capital budgeting project because they relate to the same time period.
This is the basic premise that the Net Present Value capital budgeting method works on. It discounts the various cash inflows to the present period, adds them up and then subtracts the cost of the project. If it is positive then the project is off good value.
Answer:
because people are trying to be nice in these difficult times
Due to changes in production, Hanson steel gave each employee 75 percent of the cost savings. Hanson steel uses a <u>gainsharing </u>compensation plan.
A compensation plan refers to the practices, methods, and intentional approach that's used by an organization in maintaining financial interests and developing, retaining, attracting, and rewarding employees in an industry.
It should be noted that the gainsharing compensation plan refers to a compensation plan that is used to increase profitability as employees share in the company's gain. Since the workers share 75% of the cost savings, this is a gain-sharing compensation plan.
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