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3 years ago

What is a line extension?

Business

1 answer:

blsea [12.9K]3 years ago

8 0

Answer:

line extension is the use of an established product brand name for a new item in the same product category

Explanation:

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Cash flows of two mutually exclusive projects are as follows. Project A costs $80,000 initially and will have a $15,000 salvage

Vera_Pavlovna [14]

Answer:

The correct answer is B.

Explanation:

Giving the following information:

Project A:

Costs $80,000 initially and will have a $15,000 salvage value after 3 years. The operating cost with this method will be $30,000 per year.

Project B:

The initial cost of $120,000, an operating cost of $8,000 per year, and a $40,000 salvage value after its 3-year life.

Assume the interest rate is 10% per year.

Both projects present a 3-year life cycle.

To determine which option is correct, we need to calculate the net present value using the following formula:

NPV= -Io + ∑[Cf/(1+i)^n]

Cf= cash flow

Project A:

Cf1= 30,000/1.10= 27,272.73

Cf2= 30,000/1.10^2= 24,793.39

Cf3= 45,000/1.10^3= 33,809.17

Total= 85,875.29

NPV= -80,000 + 85,875.29= 5,875.29

Because the net present value is positive, Project A should be accepted.

Project B doesn't provide income, therefore it shouldn't be accepted.

7 0

3 years ago

What is the name of the control theory that emphasizes the interplay between environmental factors and intrinsic factors?

daser333 [38]

Answer:

Social Cognitive Theory

Explanation:

Based on the information provided within the question it can be said that the theory that is being described is called Social Cognitive Theory. This is a theory presented by Albert Bandura which focuses on the interaction between intrinsic factors (such as cognitive, behavioral, or personal) and Environmental Factors in order to understand the motivation of an individual to act a certain way.

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3 years ago

Manufacturing overhead is _______________if actual manufacturing overhead costs for a period are greater than the amount of manu

nadya68 [22]

Answer:

overapplied

Explanation:

When we say that manufacturing costs were overapplied, it means that at the beginning of the production process the estimated costs were too high. In other words, the budget considered that it would cost more money to produce the goods.

In this case, overhead costs tend to be overestimated and then overapplied because they rely on past data and efficiency can improve, which lowers costs; or the total production output can be lower than estimated, therefore the company incurred in less costs.

Depending on the cause of the actual lower costs it can be good or bad. If the costs were lower due to improved efficiency, then it is very good. But if the costs were lower due to a lower output, then that is not good.

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4 years ago

"in game theory, a dominant strategy ______ exists."

Charra [1.4K]

Game theory is the study of math and logic behind problems and cooperation. It has logical steps that can be used in making life choices. In game theory, a dominant strategy of Nash equilibrium exist. Nash equilibrium is reach when players choose their own dominant strategy in no unilateral profitable deviation from any other players. In addition, no players would take action as long as other players remain the same. Therefore, Nash equilibrium is self-enforcing strategy.

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3 years ago

Read 2 more answers

In the airline industry, consolidation among fuel providers serving airport facilities would be considered as ____ factor in the

faltersainse [42]

Answer:

The correct answer is letter "C": an increase in the bargaining power of suppliers of a critical input.

Explanation:

Porter's Five (5) Forces is an analysis scheme created by Harvard School Professor Michael E. Porter (born in 1947). The ultimate goal of this analysis is to help managers set their expectations because profitability decreases as competition increases. Three of the five forces relate to industry (horizontal) participants - the threat of substitutes established rivals, and new entrants. The other two relate to the vertical participants - the bargaining of suppliers and consumers.

In the case, as airline fuel suppliers are consolidating, this would represent the bargaining of suppliers factor in Porter's theory. They could joint to decide quantities supplied or even prices.

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3 years ago