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Alik [6]
3 years ago
7

If Marriott used a single corporate hurdle rate for evaluating investment opportunities in each of its lines of business, what w

ould happen to the company overtime?
Business
1 answer:
jolli1 [7]3 years ago
5 0

Answer:

Explanation:

If a company(Marriott in this case) uses a single hurdle rate to decide whether an investment should be undertaken or not, some projects that need to be accepted would end up being rejected and vice versa. For example,

if Marriott's hurdle rate is 10% and it's evaluating

project A with a 15% cost of capital &

project B with a 6% cost of capital .

Evaluation:

Project A would probably lead to a negative NPV because the cost of capital is higher (meaning it is riskier than the firm) hence could be rejected, but using the company hurdle rate of 10% to evaluate it could make its NPV positive. This would ignore the actual additional risk of the project.

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ctivity-Based Costing Casual Cuts Inc. has total estimated factory overhead for the year of $225,000, divided into four activiti
VMariaS [17]

Answer:The activity rate for each activity of Company CC is:

Activity rate for cutting is $60 per dlh.

Activity rate for sewing is $15 per dlh.

Activity rate setup is $80 per setup.

Activity rate for inspection is $65 per inspection.

Explanation: Activity based costing trace overhead cost to each activity and absorbed at a rate for each activity rather than a rate per direct labour hour

Calculate activity rate for cutting

Cutting = cost of cutting/ Number of labour hours

$90,000/1500 = $60 per direct labour hour

Calculate the cost of sewing

Sewing= cost of sewing/ Number of labour hours

$22,500/1500 = $15 per direct labour hour

Calculate the cost of set up

Setup = cost of set up/ number of set ups

$80,000/ 1000 = $80 per set up

Calculate the cost of inspection

Inspection = cost of inspection/ number of inspection

$32,500/ 500 = $65 per inspection

5 0
3 years ago
:How is a ‘provision for reserve’ in a balance sheet, a liability or an asset. Explain.
Maslowich

Explanation:

A provision is indeed an item freed up from either a company's revenue to cover potential future costs or a probable property price decrease. It shows up as spending on the financial statements and is documented as a current liabilities.

3 0
3 years ago
Which of the following is not an appropriate member of an audit committee?
Naya [18.7K]
It’s B, have a good day☀️
7 0
3 years ago
Suppose a political candidate criticizes a government pollution permit policy that she says lets corporations buy and sell the r
guajiro [1.7K]

Answer:

b) A free market in tradable permits is typically more efficient that government regulation

Explanation:

  • When companies are forced to buy rights to pollute, they are paying a cost for the pollution they create. If they pollute more, they will end paying more for that pollution. (demand of rights to pollute)
  • On the other hand, companies that pollute almost nothing  can sell rights to pullute saving money: this will create a benefit for companies who take care of environment. (supply of rights to pollute)
  • Then, there will be a market of rights to pullute, where some companies will sell and others will buy rights to pullute. In this market, the price of rights to pollute will be determined efficiently.
  • Because the production of absolutely every good or service sold in our economy implies pollution, there is a cost society is willing to pay in terms of pollution to get the goods and services it consumes.<em> For example</em>, I am willing to keep buying soda, besides I now for sure its production has certain negative effects on environment. I demand the product, therefore the company (that pollutes) has incentives to keep selling the product.
  • The cost we are willing to pay to keep consuming goods will be related to the demand and supply of rights to pollute : companies whose producs are more demanded (by us!) would buy more rights to pollute when neccesary, and companies whose products are not that demanded will buy less rights to pollute, transmiting this results to prices.
  • Then, pollution rights became an efficient way of assigning a price to pollution.
4 0
3 years ago
Concord Communications anticipated that 10,000 workers were planning to strike over unfair compensation. Management started to c
WINSTONCH [101]

Answer: strikebreakers.

Explanation:

Strikebreakers are the people who are employed by an organization in place of the employees who are on strike. Strikebreakers make the strike ineffectual as they perform the work of the employees who have gone on strike.

Strikebreaker work even though there's ongoing strike. Strikebreakers are usually not employed by the firm before the trade union dispute, but are employed during or after the strike to keep the organization running.

8 0
3 years ago
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