Answer:
Project A is more valuable than Project B given a positive discount rate.
Explanation:
Let us assume the Discount Rate be r and cash flow for year n be CFn
Also
Let us assume initial Investment be X
So,
NPV = ΣCFn ÷ (1+r)^n
NPVA = - X + 6500 ÷ (1 + r) + 4500 ÷ (1+r)^2 + 2500 ÷ (1+r)^3
NPVB = - X + 2500 ÷ (1+r) + 4500 ÷ (1+r)^2 + 6500 ÷ (1+r)^3
NPVA - NPVB = - X + 6500 ÷ (1+r) + 4500 ÷ (1+r)^2 + 2500 ÷ (1+r)^3 - (- X + 2500 ÷ (1+r) + 4500 ÷ (1+r)^2 + 6500 ÷ (1+r)^3)
= 4000 ÷ (1+r) - 4000 ÷ (1+r)^3 = 4000(1 ÷ (1+r) - 1 ÷ (1+r)^3)
In the case when
Ir > 0, 1 ÷ (1+r) > 1 ÷ (1+r)^3
So,
NPVA - NPVB > 0 => NPVA > NPVB
Answer: Defensive
Explanation: The defensive approach to social responsibility is not much used by the companies nowadays, but companies following this approach meet their social responsibility objectives better than other.
The main focus on this approach is to make profits but managers make sure that they operate within the boundaries of law so that no legal action will be taken against them.
In the given case, the stockholder does not want any trouble with the clients whether legally or personally, thus, we can conclude that he is following defensive approach.
An authoritarian parent may say "No you are not going, you are forbidden to go and that is final!". A democratic parent might say, "If you wish to go, since you are only 16 I think you should go with your brother who is 18 for protection and in case the party gets out of hand he will bring you home and out of harm's way. I know you need sociability with your school mates as I also sought this when I was at school but it must be done responsibly. I expect you two to be home by 11PM". The permissive parent might say, "Sure, go for it and enjoy yourself and see you when you get home'.
Answer:
1. Which set of items in the accompanying list would move an economy from a point inside its production possibilities curve to a point on its production possibilities curve?
a. 1, 2, 5, and 6 only.
2. More than 75% of the world's income is earned by what percentage of the world's population?
d. 5%.
Explanation:
The above options are the solutions to the questions asked. In terms of the world's income, 5% of the world's population earns 75% of the world's income.
Answer:
a) dollar amount of the gross profit = 17000
b) dollar amount of the income from operations = 11700
c) dollar amount of the income before income tax = 11900
d) dollar amount of the net income = 8400
Explanation:
(a) Gross profit:
= Sales - Cost of goods sold
= 50,000 - 33,000
= $17,000
(b) Income from operation:
= Gross profit - Bad debt expenses - other operating expenses - Selling and administrative expenses
= $17,000 - $100 - $500 - $4,700
= $11,700
(c) Income before income tax:
= Income from operation + Interest Income and Other Non-operating Revenues
= $11,700 + $200
= $11,900
(d) Net income:
= Income before income tax - Income tax
= $11,900 - $3,500
= $8,400