Answer:
E. a straight salary.
Explanation:
Straight salary is a compensation method where the salesperson receives a fixed amount. Regardless of the level of output, the salesperson does not get any sales commissions or bonuses. Straight salary is time tied, not performance-focused.
Straight salary is suitable when the business objective is long-term market presence and not short-term high sales volume. It is also used when it is difficult to isolate an individual's effort from team performance.
Straight salary or time-bound salaries do not encourage individuals to put in extra efforts. The other options have commissions and bonus, which is not a feature of straight salaries.
Answer:
No
Explanation:
the required rate of return = 12%
if the present value of the project's cash flows after being discounted at the required rate of return = $120,000, then the net present value (NPV) of the project is negative. Future cash flows are discounted at the company's required rate of return, if they were discounted at a lower rate, their present value would be higher.
Any project with a negative NPV should be rejected because it doesn't provide enough cash flows.
Answer:
$9.57 per stock
Explanation:
using the dividend discount model to find the stock's current price (P₀):
P₀ = Div₁ / (Re - g)
- Div₁ = $0.70 x 1.025 = $0.7175
- Re = 10%
- g = 2.5%
P₀ = $0.7175/ (10% - 2.5%) = $0.7175/ 7.5% = $9.5667 ≈ $9.57 per stock
Answer:
a-1. NPV for the project is $8,381,576.17
a-2. A. Yes. Accept the Project.
b. 40.84 % and 40.84 %
Explanation:
The Net Present Value can be determined using a Financial Calculator as follows :
-38,600,000 CFj
62,600,000 CFj
- 11,600,000 CFj
11 % I/YR
Shift NPV $8,381,576.17
A Company should accept projects that have a positive Net Present Value.Therefore, Accept this project.
Calculation of the Internal Rate of Return using a Financial Calculator :
-38,600,000 CFj
62,600,000 CFj
- 11,600,000 CFj
Shift IRR 40.84 %
Answer: Andy's demand for beer to increase
Explanation:
Andy's views beer and pizza as complement to each other. Hence when the price of pizza decreases Andy's demand for beer would increase as he would order more beer than pizza so as to complement both offers.
