Your company has extra cash which it would like to use to invest into something new and profitable. There are two mutually exclusive projects under consideration.

Project #1 will require an initial investment of $860, and the present value of all of its future estimated profits is $956.
Project #2 will require an initial investment of $710, and the present value of all of its future estimated profits is $800.
Based on this information, answer the following questions.

(a) For Project #1, the Profitability Index equals . Round to TWO decimal places, for example, 1.23

(b) For Project #2, the Profitability Index equals . Round to TWO decimal places, for example, 1.23

(c) Based on the Profitability Indexes, your company should (type accept or reject) Project #1 and (type accept or reject) Project #2.

Answers

Answer 1

Your company should reject Project #1 and accept Project #2 based on the Profitability Indexes.

Based on the Profitability Indexes, should your company accept Project #1 and Project #2?

(a) The Profitability Index for Project #1 is calculated as the present value of future estimated profits divided by the initial investment:

Profitability Index = Present Value of Future Profits / Initial Investment

Profitability Index = $956 / $860 = 1.11

(b) The Profitability Index for Project #2 is calculated in the same way:

Profitability Index = Present Value of Future Profits / Initial Investment

Profitability Index = $800 / $710 = 1.13

(c) Based on the Profitability Indexes, your company should accept Project #2 and reject Project #1. The higher profitability index of Project #2 indicates a better return on investment compared to Project #1.

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Related Questions

If one is studying a cycle of eight weeks the assumption that the next longest cycle is a. 10 weeks b. 12 weeks c. 16 weeks d. 36 weeks

Answers

If one is studying a cycle of eight weeks, the assumption that the next longest cycle is 12 cycle is a sequence of events that occur in a regular manner. In science, the cycle could be a series of changes that occur regularly in the environment, the body.

In the case of studying a cycle of eight weeks, the assumption that the next longest cycle is 12 weeks. The assumption is based on the knowledge that most cycles follow a pattern or a series of sequences that are constant. In science, the cycle could be a series of changes that occur regularly in the environment, the body.

If one is studying a cycle of eight weeks, the assumption that the next longest cycle is 12  B is the correct option. A cycle is a sequence of events that occur in a regular manner. In science, the cycle could be a series of changes that occur regularly in the environment, the body.

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what does the level of savings in a country have to do with how much is invested in new production facilities

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Answer:

I searched it up and this came up

Ten years have passed since Arnell issued $14 million in perpetual interest only debt with a 5% annual coupon. Tax rates have remained the same at 21% but interest rates have dropped, so Arnell's current cost of debt capital is 3%. a. What is Arnell's annual interest tax shield? b. What is the present value of the interest tax shield today? a. What is Arnell's annual interest tax shield? The interest tax shield is $ million. (Round to three decimal places.) b. What is the present value of the interest tax shield today? The present value of the interest tax shield is $ million. (Round to two decimal places.)

Answers

The annual interest tax shield is $0.147 million, and the present value of the interest tax shield today is $4.9 million. Arnell issued $14 million in perpetual interest-only debt with a 5% annual coupon ten years ago. The tax rate has remained constant at 21%, but the interest rate has decreased, resulting in Arnell's present cost of debt capital being 3%.

To calculate the annual interest tax shield, we must first determine the total amount of interest paid annually. This can be done by multiplying the original debt amount by the annual coupon rate, as follows:Annual interest payment = Debt amount × Coupon rate = $14 million × 5% = $0.7 million.

The interest tax shield is equivalent to the amount of interest paid multiplied by the tax rate. As a result, Arnell's annual interest tax shield can be calculated as follows:

Annual interest tax shield = Annual interest payment × Tax rate = $0.7 million × 21% = $0.147 millionTo calculate the present value of the interest tax shield today, we must first determine the remaining life of the perpetual bond. Since it is perpetual, it has an infinite life.

As a result, the formula for calculating the present value of the interest tax shield can be expressed as:P.V. of interest tax shield = Annual interest tax shield / Cost of debt capital = $0.147 million / 3% = $4.9 million.Therefore, the annual interest tax shield is $0.147 million, and the present value of the interest tax shield today is $4.9 million.

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Coffee grown in Guatemala is priced at 24 Guatemalan quetzal per pound (Guatemalan quetzal, or GTQ, is the currency of Guatemala). Comparable coffee grown in the U.S. is priced at $3.50 per pound. One Guatemalan quetzal trades for $0.12 in the foreign exchange market. Find the real exchange rate from the perspective of the United States and from the perspective of Guatemala, and determine which country’s coffee is more competitively priced?

Answers

The price of coffee grown in Guatemala is 24 GTQ per pound. On the other hand, the price of equivalent coffee grown in the United States is $3.50 per pound. We can use these numbers to figure out the real exchange rate from both countries' perspectives and see which country's coffee is more competitively priced. Given that one Guatemalan quetzal trades for $0.12 in the foreign exchange market.

First, we'll determine the price of Guatemalan coffee from a US perspective. $1 is equivalent to 8.7 GTQ since one Guatemalan quetzal trades for $0.12. So, 24 GTQ equals (24 / 8.7) = $2.76. Therefore, Guatemalan coffee is more competitively priced than American coffee in the United States as $2.76 is lower than $3.50.On the other hand, we will now calculate the price of U.S. coffee from a Guatemalan perspective.

One pound of coffee in the United States costs $3.50. One dollar costs 8.33 GTQ since 1 / 0.12 = 8.33. Thus, 3.50 dollars is equal to (3.50 * 8.33) = 29.16 GTQ. Thus, American coffee is more expensive in Guatemala than Guatemalan coffee, and thus Guatemalan coffee is more competitively priced than American coffee in Guatemala.

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Stephen and Jeanie, who currently live in Pennsylvania, would like to move to Mexico in ten years and purchase a Mexican villa. The villa costs $500,000 today, and housing prices in Mexico are expected to increase by 3.5% per year for the next ten years. They plan to make equal amount of monthly payments into an account, starting one month from now.

In order to save enough money to purchase the villa. If the account earns 12% interest, compounded monthly, what should the amount of each deposit be?

Answers

The amount of each deposit Stephen and Jeanie need to make into the account, to save $500,000 to buy a villa in Mexico after ten years, is $3,856.14 per month.

In order to calculate the monthly deposit needed to save $500,000 over the next ten years to buy a Mexican villa at a cost of $500,000 today, Stephen and Jeanie will need to use the Present Value of an Annuity formula. An annuity is an investment that pays a fixed amount of money every year. An annuity may be an investment or an insurance contract. It is also defined as a sum of money paid periodically, at fixed intervals, for a fixed period of time. In this case, Stephen and Jeanie will make an equal amount of monthly payments into an account starting one month from now. The formula for the Present Value of an Annuity is [tex]PV = C [ (1 - (1+i)^-n) / i ][/tex] Where, PV is = Present Value of the Annuity, C = Cash payment, n = Number of periods and i = interest rate per period divided by a number of compounding periods. In this scenario, PV is $500,000, i is 12% / 12 or 1%, and n is 10 years * 12 months or 120 months. The formula becomes:500,000 = [tex]C [ (1 - (1.01)^ -^1^2^0) / 0.01 ][/tex]

Using algebra, we can solve for C:C = PV / [tex][ (1 - (1+i)^-^n) / i ][/tex] C = $500,000 / [tex][ (1 - (1.01)^-^1^2^0) / 0.01 ]C[/tex] = $3,856.14 per month

The amount of each deposit Stephen and Jeanie need to make into the account, to save $500,000 to buy a villa in Mexico after ten years, is $3,856.14 per month.

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An example of government spending when calculating the GDP using the expenditures approach is _____.


A. medical expenses

B. any investment expenditure by a government

C. the purchase of a building

D. none of the above

Answers

Answer:

Maybe D, The answer should be "salaries of public employees"

Answer:

Medical expenses

Explanation:

EDG 2021 Business Entreprenuership

Super Charged Corp.'s free cash flows are forecast to be $156 million in one year, $229 million in two years, and $381 million in three years. Its free cash flows are expected to increase by 4% every year after three years. Super Charged Corp's weighted average cost of capital is 10%. What is the enterprise value of Super Charged Corp.? Round you answer to the nearest one-hundredth of a million dollars. Do not include the percent sign.

Answers

To calculate the enterprise value of Super Charged Corp., we need to calculate the present value of its future free cash flows.

The present value of each cash flow can be calculated using the formula:

PV = CF / (1 + r)^n

Where PV is the present value, CF is the cash flow, r is the discount rate, and n is the number of periods.

Using the given data, we can calculate the present value of each cash flow:

PV1 = $156 million / (1 + 0.10)^1 = $142.36 million

PV2 = $229 million / (1 + 0.10)^2 = $185.95 million

PV3 = $381 million / (1 + 0.10)^3 = $305.70 million

For the cash flows after three years, we will use the perpetuity formula:

PV4 = CF / r

Where CF is the cash flow in year four and r is the discount rate.

PV4 = $381 million * 1.04 / 0.10 = $397.44 million

Now, we can calculate the enterprise value by summing up the present values of all cash flows:

Enterprise Value = PV1 + PV2 + PV3 + PV4

Enterprise Value = $142.36 million + $185.95 million + $305.70 million + $397.44 million

Enterprise Value = $1,031.45 million

Therefore, the enterprise value of Super Charged Corp. is approximately $1,031.45 million.

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Compute total ending liabilities for a first-year company with the following:

15% ROA

paid no dividends

ending total assets = $2,000,000

ending common stock = $1,350,000

debt-to-equity ratio = 1:3

(do not use any $ signs or comma's in your answer; a negative value should be started with a - sign)

Answers

The total ending liabilities for the first-year company would be $550,000.

First, we can calculate the Net Income using the ROA:

Net Income = ROA * Ending Total Assets

Net Income = 0.15 * $2,000,000

Net Income = $300,000

Since the company paid no dividends, the Retained Earnings will be equal to the Net Income:

Retained Earnings = Net Income

Retained Earnings = $300,000

Next, we can calculate the total equity by summing the Common Stock and Retained Earnings:

Total Equity = Ending Common Stock + Retained Earnings

Total Equity = $1,350,000 + $300,000

Total Equity = $1,650,000

Now, we can calculate the total liabilities using the debt-to-equity ratio:

Debt-to-Equity Ratio = Total Liabilities / Total Equity

1/3 = Total Liabilities / $1,650,000

Multiplying both sides by $1,650,000:

Total Liabilities = (1/3) * $1,650,000

Total Liabilities = $550,000

Therefore, the total ending liabilities = $550,000.

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Many locations require that renters be paid interest on their security deposits. If you have a security deposit of $1,800, how much interest would you expect to earn per year at 2 percent?
Annual interest $
a. $36
b. $38
c. $34
d. $30

Answers

The annual interest you would expect to earn on a security deposit of $1,800 at a 2 percent interest rate is $36. The correct answer is option a.

Amount of interest accrued or earned on a specific principal sum or investment over the course of a year is referred to as "annual interest earned."

The total interest you would receive over the course of a year based on the specified interest rate and the initial amount is known as the annual interest earned when money is deposited into an account or invested in a financial instrument that offers an interest rate.

Interest = Principal × Interest Rate

security deposit = $1,800

interest rate = 2 % = 0.02

Interest = $1,800 × 0.02

Interest = $36 The correct answer is option a.

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employers rank the ability to work well on teams second only to outstanding __________.

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Employers rank the ability to work well on teams second only to outstanding Leadership skills.

Employers rank the ability to work well on teams second only to outstanding leadership skills. This highlights the importance that employers place on teamwork in the workplace. Effective teamwork is crucial for achieving organizational goals, promoting collaboration, and fostering a positive work environment.

Outstanding leadership skills are typically considered the most valued attribute in an employee, as leaders play a pivotal role in guiding and motivating teams to achieve success. However, the ability to work well on teams is highly valued because it demonstrates an individual's capacity to collaborate, communicate, and cooperate with others effectively.

Teamwork is essential in many work settings, as it promotes synergy, creativity, and problem-solving. Employers recognize that individuals who can contribute effectively to a team and collaborate with their colleagues can drive better outcomes and improve overall productivity. Therefore, the ability to work well on teams is highly sought after and considered a valuable skill in the workplace.

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Which of the following statements concerning profitability and profit growth is NOT true?
a. Too much emphasis on current profitability at the expense of profit growth can make an enterprise less attractive to shareholders.
b. Attaining future profit growth may require investments that reduce the current rate of profitability.
c. Satisfying the claims of other key stakeholder groups happens at the risk of decreased profitability and profit growth.
d. Managers must find the right balance between profitability and profit growth.
e. Too much emphasis on profit growth can reduce profitability and make an enterprise less attractive to shareholders.

Answers

Satisfying the claims of other key stakeholder groups happens at the risk of decreased profitability and profit growth. Option c is correct.

Satisfying the claims of other key stakeholder groups, such as employees, customers, and the community, often involves expenses and investments that can impact profitability and profit growth. For example, increasing employee wages or investing in sustainable practices may reduce short-term profitability but can contribute to long-term success and stakeholder satisfaction.

Balancing the interests of stakeholders while maintaining profitability is a challenge that managers face, and it requires finding the right trade-offs and prioritizing long-term sustainability over short-term gains. Option c is correct.

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Assume a model with no G and NX if autonomous consumption, Ć=100 and mpc=0.70 and income, y=800
a) how much is the total consumption?
b) how much is the total savings?

Answers

In macroeconomics, consumption and savings are significant components of an economy. People's overall consumption patterns determine the level of the economy's gross domestic product (GDP) and the total savings rate.

In this question, we have to calculate the total savings given the information on the autonomous consumption and marginal propensity to consume. The total savings would be given by the formula: S = Y - C Where S is the total savings, Y is income, and C is the consumption function.

According to the question, autonomous consumption, Ć = 100 and mpc = 0.70 and income, Y = 800. Therefore, the consumption function, C would be given as:

C = Ć + mpc(Y)C = 100 + 0.70(800)C = 660

Total Savings, S = Y - CC = 800 - 660S = 140

Therefore, the total savings would be 140. This implies that when the total income is 800 and the autonomous consumption is 100 with an MPC of 0.7, the total savings would be 140.

The marginal propensity to consume (mpc) is the fraction of the additional dollar that is spent on consumption. Autonomous consumption is the consumption level that is unaffected by the changes in income.

As the MPC is 0.70, it means that for every additional dollar of income, 0.70 cents will be spent on consumption, and the remaining 0.30 cents will be saved.

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15 Joyne is expecting to earn a return of 6% on an investment she recently purchased. If the risk-free rate is 2%, what risk premium is she anticipating on the investment? A 2% B 6% C 4% 3% (0)

Answers

She is anticipating the risk premium of 4% on the investment.

The correct answer to the given question is option C.

Risk premium can be defined as the excess return an investor expects to earn from an investment in excess of the risk-free rate. It is the return on an investment above the risk-free rate.

The equation for risk premium is as follows: Risk Premium = Expected Return – Risk-Free Rate. Given that Joyne is expecting to earn a return of 6% on an investment and the risk-free rate is 2%, we can calculate the risk premium as follows:Risk Premium = 6% - 2%Risk Premium = 4%.

Therefore, Joyne is anticipating a risk premium of 4% on the investment she recently purchased. Option C (4%) is the correct answer.

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Which of the following best completes the sentence,'___ links are not paid for but are based ont he search engine's model for delivering relevant search results

Answers

Organic links are not paid for but are based ont he search engine's model for delivering relevant search results.

"Organic" best completes the sentence. Organic links refer to the natural search results displayed by search engines based on their algorithms and relevance to the user's search query. These links are not influenced or paid for by advertisers, unlike paid advertisements or sponsored links.

Search engines, such as G_oogle, use complex algorithms to analyze various factors like website content, keywords, relevance, user experience, and popularity to determine the ranking and placement of organic search results. The goal is to deliver the most relevant and valuable information to the user based on their search query.

Organic links are considered to be unbiased and reflect the search engine's evaluation of the website's content and relevance. They are not influenced by any monetary transactions between the website owner and the search engine. Instead, they are the outcome of the search engine's model for providing users with the most useful and credible search results.

By distinguishing organic links from paid advertisements, search engines aim to maintain the integrity and objectivity of their search results, ensuring that users receive unbiased and relevant information.

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One difference between a perfectly competitive firm and a monopoly firm is a monopoly firm Is resource allocate efficient, and a perfectly competitive firm is not. competitive firm maximizes p -profit by producing the Quantity of output at which MR - MC, and the firm does not. the monopoly Arm charges the highest per-unit price for its product, and the perfectly competitive firm does not. the demand curve and the marginal revenue curve are the same 'or the perfectly competitive firm, but they are not the same for the monopoly firm.

Answers

One difference between a perfectly competitive firm and a monopoly firm is that a perfectly competitive firm faces a perfectly elastic demand curve, while a monopoly firm faces a downward-sloping demand curve.

A perfectly competitive firm is a firm that is one of many firms in an industry. The products sold by the firms in a perfectly competitive industry are identical, and there are no barriers to entry or exit. This means that any firm in the industry can sell as much or as little output as it wants without affecting the market price.

A monopoly firm is a firm that is the only seller of a product in an industry. There are no close substitutes for the product sold by the monopoly firm, and there are barriers to entry that prevent other firms from entering the industry. This means that the monopoly firm can control the price of its product.

The demand curve for a perfectly competitive firm is perfectly elastic. This means that a small change in the quantity of output supplied by the firm will cause a large change in the market price. The demand curve for a monopoly firm is downward-sloping. This means that a small change in the quantity of output supplied by the firm will cause a small change in the market price.

The difference in the shape of the demand curves for perfectly competitive firms and monopoly firms has a number of implications for the behavior of these firms. Perfectly competitive firms will produce where marginal revenue equals marginal cost. Monopoly firms will produce where marginal revenue equals marginal cost, but they will also charge a price that is greater than marginal cost. This is because monopoly firms have market power and can control the price of their product.

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Please solve question #2
BusinessCourse Mod 16 Homework Navigation 1 2 3 4 5 Finish attempt ... ✰ Return to course Direct materials per unit Direct labor per unit Variable manufacturing overhead per unit Fixed manufacturing

Answers

The annual break-even point in units for Sharpie using the: 1. Capital-intensive manufacturing method: 26,623 units and 2. Labor-intensive manufacturing method: 10,714 units

To determine the annual break-even point in units for each manufacturing method, we need to calculate the contribution margin per unit and use it to divide the total fixed costs.

For the capital-intensive manufacturing method:

Direct materials per unit: $10.00

Direct labor per unit: $4.00

Variable manufacturing overhead per unit: $5.00

Total variable cost per unit: $10.00 + $4.00 + $5.00 = $19.00

Selling costs per unit: $4.00

Contribution margin per unit: Selling price per unit - Total variable cost per unit - Selling costs per unit

Contribution margin per unit: $100.00 - $19.00 - $4.00 = $77.00

Total fixed manufacturing overhead per year: $1,800,000

Total fixed costs per year: Total fixed manufacturing overhead per year + Incremental selling costs per year

Total fixed costs per year: $1,800,000 + $250,000 = $2,050,000

Break-even point in units for the capital-intensive manufacturing method: Total fixed costs per year / Contribution margin per unit

Break-even point in units: $2,050,000 / $77.00 = 26,623 units (rounded up to the nearest whole number)

For the labor-intensive manufacturing method:

Direct materials per unit: $12.00

Direct labor per unit: $12.00

Variable manufacturing overhead per unit: $2.00

Total variable cost per unit: $12.00 + $12.00 + $2.00 = $26.00

Selling costs per unit: $4.00

Contribution margin per unit: Selling price per unit - Total variable cost per unit - Selling costs per unit

Contribution margin per unit: $100.00 - $26.00 - $4.00 = $70.00

Total fixed manufacturing overhead per year: $500,000

Total fixed costs per year: Total fixed manufacturing overhead per year + Incremental selling costs per year

Total fixed costs per year: $500,000 + $250,000 = $750,000

Break-even point in units for the labor-intensive manufacturing method: Total fixed costs per year / Contribution margin per unit

Break-even point in units: $750,000 / $70.00 = 10,714 units (rounded up to the nearest whole number)

Therefore, the annual break-even point in units for Sharpie using the:

1. Capital-intensive manufacturing method: 26,623 units

2. Labor-intensive manufacturing method: 10,714 units

The complete question is:

"Direct materials per unit Direct labor per unit Variable manufacturing overhead per unit Fixed manufacturing overhead per year Question 4 Partially correct Mark 6.00 out of 7.00 P Flag question Alternative Production Procedures and Operating Leverage Assume Sharpie, a brand of Newell Brands, is planning to introduce a new executive pen that can be manufactured using either a capital-intensive method or a labor-intensive method. The predicted manufacturing costs for each method are as follows: Capital Intensive Labor Intensive $10.00 $12.00 $ 4.00 $12.00 $5.00 $ 2.00 $1,800,000 $ 500,000 Sharpie's market research department has recommended an introductory unit sales price of $100. The incremental selling costs are predicted to be $250,000 per year, plus $4 per unit sold. (a) Determine the annual break-even point in units if Sharpie uses the: Note: Round both answers UP to the nearest whole number. 1. Capital-intensive manufacturing method. 26,623 ✓ units 1,800,000 2. Labor-intensive manufacturing method. x units"

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the key means of advancing modern legislation is now _______. group of answer choices the actions of the leadership committees the filibuster the budget process

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The key means of advancing modern legislation now is the actions of the leadership committees.

In the modern legislative landscape, leadership committees play a crucial role in advancing legislation. These committees, typically headed by influential members of the legislative body, hold significant power in determining which bills move forward, shaping the legislative agenda, and guiding the legislative process.

Leadership committees, such as the Rules Committee in the U.S. House of Representatives or the Senate Majority Leader's office, have the authority to schedule debates, set rules for consideration of bills, and determine the order and priority of legislation. They wield substantial influence over the legislative process by deciding which bills receive attention and which ones do not.

Furthermore, leadership committees often have the ability to negotiate compromises, forge alliances, and mobilize support for specific legislative initiatives. They work closely with party members, interest groups, and stakeholders to build consensus and navigate the political landscape to ensure the passage of desired legislation.

While the filibuster and the budget process are also significant elements of the legislative process, they do not represent the key means of advancing modern legislation in the same way as the actions of the leadership committees.

The filibuster, a tactic used to delay or block legislation through extended debate, can be employed by individual members of the legislative body but is subject to rules and limitations. The budget process, on the other hand, primarily focuses on the allocation of funds and does not encompass the full scope of advancing legislative initiatives.

Overall, in contemporary legislative systems, the actions and decisions made by leadership committees hold considerable influence in advancing modern legislation by shaping the legislative agenda, determining bill consideration, and rallying support for desired outcomes.

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Which of the following is NOT a commonly used method for departmentalizing a firm? a. by function b. by product c. by customer d. by managerial level e. by geography

Answers

The following is NOT a commonly used method for departmentalizing a firm is by managerial level. Departmentalization is the process of classifying and grouping activities into departments to achieve the firm's objectives, which could be an increase in production efficiency, sales, and so on.

Departmentalization creates units that are accountable for the accomplishment of certain duties and functions. Each department has a set of tasks, which, when accomplished, helps the company attain its overall objectives

.It can be achieved by departmentalizing a firm into one of these categories: By function, by product, by customer, by geography, and by process.Each of the above methods of departmentalization has its advantages and disadvantages, and a business must select the method that best meets its objectives.

For example, By function: groups jobs and activities that relate to the same function, such as accounting, finance, and marketing.By product: group products into distinct units that are responsible for the product's success in the market.By customer: group activities to respond to and meet customer needs in a specific market.

By geography: creates regions that correspond to geographic locations of the firm's markets, customers, or headquarters.By process: groups activities according to the production process.

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A change in depreciation from the double-declining to the straight-line method would be accounted for as a (an) correction of an error. extraordinary item. change in accounting principle. change in es

Answers

A change in depreciation from the double-declining to the straight-line method would be accounted for as a (an) c. change in accounting principle

A corporation changing its depreciation methodology is seen as changing an accounting concept. This indicates that the organisation is changing the method it employs to determine and allocate depreciation costs. The accounting approach used to calculate depreciation in this example changed when the double-declining technique was replaced with the straight-line method.

It is significant to remember that in order to guarantee openness and comparability, any changes in accounting principles must be mentioned in the financial statements. The financial statements for earlier periods may need to be adjusted for impact of overall change, or financial statements for current period may need to be adjusted for the cumulative effect of the change.

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Complete Question:

A change in depreciation from the double-declining to the straight-line method would be accounted for as a (an)

a. correction of an error

b. extraordinary item

c. change in accounting principle

d. change in estoppel

The interest rate that financial economists consider to be the most accurate measure is the Seleccione una: A. yield to maturity. B. coupon rate. C. yield on a discount basis. D. current yield.

Answers

The interest rate that most economists consider to be very accurate measure is Yield to Maturity. The Option A.

What is the most accurate measure of interest rate?

Yield to Maturity (YTM) is regarded as the most accurate measure of interest rate by financial economists. YTM takes into account the present value of all expected future cash flows including coupon payments and the final principal repayment and provides comprehensive measure of the total return an investor can expect to earn from holding a bond until its maturity.

It considers the price at which the bond is purchased, the coupon rate, and the time remaining until maturity. By considering these factors, YTM reflects the true yield an investor can expect to receive making it a preferred measure by financial economists for assessing the actual return on investment.

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John have a stock investment that gained 10% on the first year, another gain of 35% on the second year, but a loss of 28% in the thi year, and rebounded with a gain of 200% on the fourth year. Compute the geometric mean annual rate for John's stock investment (Round the final answer to 2 decimal places.) The geometric mean annual rate is:

Answers

The geometric mean annual rate for John's stock investment is approximately 14.67%.

To compute the geometric mean annual rate, we need to calculate the average annual rate of return over a four-year period. First, we convert the individual gains/losses to decimal form: 10% = 0.10, 35% = 0.35, -28% = -0.28, 200% = 2.00.

Next, we calculate the product of the (1 + r) terms, where r is the rate of return for each year:

(1 + 0.10) * (1 + 0.35) * (1 - 0.28) * (1 + 2.00) = 1.067 * 1.35 * 0.72 * 3 = 3.27744.

To find the geometric mean annual rate, we take the fourth root of the product:

(3.27744)^(1/4) ≈ 1.1467.

Finally, we subtract 1 from the result and convert it to a percentage:

0.1467 * 100 ≈ 14.67%.

The geometric mean annual rate for John's stock investment is approximately 14.67%.

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19.Abn, age 48 and single, has no dependents and an AGI of $50,000 and these expenses: unreimbursed medical expenses of $4,200, charitable contribution of $5,000. real estate taxes of $3,500, and residence mortgage interest of $7,000. For 2019, Alan's deductions from AGI is? A$15,500 8.512.200 C316,700 D$19,700 E.None of these anwers

Answers

If the real estate taxes of $3,500, and residence mortgage interest of $7,000 then AGI dedeuction year 2019 is $19,700.(D)

Abn, age 48, and single with an AGI of $50,000 and with no dependents, incurred unreimbursed medical expenses of $4,200, gave $5,000 in charitable contributions, paid $3,500 in real estate taxes, and paid $7,000 in residence mortgage interest.

In 2019, Alan's deductions from AGI is $19,700.Calculation of Alan's deductions from AGI:Unreimbursed medical expenses: 7.5% × $50,000 = $3,750($4,200 - $3,750) = $450 Charitable contribution: $5,000 Real estate taxes: $3,500 Residence mortgage interest: $7,000

Total itemized deductions = $450 + $5,000 + $3,500 + $7,000 = $15,950

Since itemized deductions are greater than the standard deduction for the 2019 tax year, Alan will claim itemized deductions from AGI, which will result in an AGI deduction of $19,700.(D)

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why has it taken so long for the medical-surgical unit at 3m to learn about the new product and market opportunities revealed through the lead user process?

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It has taken so long for the medical-surgical unit at 3M to learn about the new product and market opportunities revealed through the lead user process because the company had a rigid innovation process.

The company had a well-established process for new product development, which was slow and often relied on in-house experts. This made it difficult for 3M to recognize the potential of new markets and products that were not identified by its existing process. The lead user process is a new approach that relies on engaging with users who are ahead of the curve in terms of their needs and preferences.

This process allows companies to identify new opportunities in emerging markets and products that would otherwise be overlooked. However, the process is less structured and requires a more open-minded approach to innovation, which can be difficult for established companies to adopt. Additionally, the medical-surgical unit at 3M had a culture of risk aversion, which made it even more challenging to embrace new approaches to innovation.

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.In many commercial real estate loans, the lender cannot hold the borrower personally liable in the event of a default. Such loans are commonly referred to as:
a. recourse loans.
b. nonrecourse loans.
c. conforming loans.
d. nonconforming loans.

Answers

In many commercial real estate loans, the lender cannot hold the borrower personally liable in the event of a default. Such loans are commonly referred to as nonrecourse loans. Option B is the correct answer.

If the collateral stated in the terms of the loan is not worth enough to pay off the full obligation, the lender may nevertheless be able to take it under a non-recourse loan. The legislation prohibits lenders from seizing the borrower's other assets in addition to the collateral from a non-recourse loan. Option B is the correct answer.

Non-recourse loans could include tougher requirements, higher interest rates, and other restrictions that do not apply to recourse loans. Non-recourse loans are rarely provided by banks. It exposes businesses to damages in the event that their clients are unable to make loan payments and their collateral is insufficient. The lender is responsible for any losses if there is any outstanding debt after the loan-collateralized asset has been sold. The borrower's other assets, property, or income are not subject to its claim.

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5. (5 points possible) Please provide answers to each of the following, including commentary: a. Which two ratios are used in the DuPont System to create Return on Assets (ROA)? b. Total current assets for a firm at the end of 2019 were $2,350,100. Total current liabilities for the same period were $1,980,312. The current ratio at the end of 2019 was: c. Total current assets for a firm at the end of 2019 were $2,350,100. Total current liabilities for the same period were $1,980,312. Net working capital at the end of 2019 was: d. Net Working Capital is defined as:

Answers

a. The two ratios that are used in the DuPont System to create Return on Assets (ROA) are Asset Turnover Ratio and Profit Margin Ratio.

b. Current ratio at the end of 2019 was 1.18:1.

c. Net working capital at the end of 2019 was $369,788.d. Net Working Capital is defined as the difference between the current assets and current liabilities of a company. The DuPont System is a financial ratio analysis method that is used to break down the different components that contribute to return on equity (ROE) and return on assets (ROA).

The two ratios that are used in the DuPont System to create Return on Assets (ROA) are Asset Turnover Ratio and Profit Margin Ratio. ROA = Asset Turnover Ratio x Profit Margin Ratio Asset Turnover Ratio = Sales / Total Assets Profit Margin Ratio = Net Income / Sales The current ratio is calculated by dividing the total current assets by the total current liabilities of a company.

Current ratio = Total Current Assets / Total Current Liabilities Current ratio at the end of 2019 was calculated as follows: Current ratio = $2,350,100 / $1,980,312 = 1.18:1.Net working capital is the difference between a company's current assets and current liabilities. Net working capital = Total Current Assets - Total Current Liabilities Net working capital at the end of 2019 was calculated as follows: Net working capital = $2,350,100 - $1,980,312 = $369,788.Net Working Capital is defined as the difference between the current assets and current liabilities of a company. It is a measure of a company's liquidity, which reflects its ability to meet short-term obligations as they come due. It provides an indication of a company's ability to pay off its current liabilities with its current assets. A positive net working capital is generally seen as a sign of financial stability, while a negative net working capital may indicate liquidity problems.

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TRUE / FALSE.
6. According to Juran, "Fitness for Use" means producing cost-effective products. True __ False____

7. The aim of just-in-time is to reduce cycle time. True __ False____

8. Cost of prevention is often part of the project budget, but the cost of failure usually happens after the project is completed. True __ False____

Answers

6. According to Juran, "Fitness for Use" means producing cost-effective products. False.

Fitness for Use (FFU) is defined as satisfying the needs of the customer for a particular product or service. This suggests that the product or service must be delivered with the desired level of quality.

7. The aim of just-in-time is to reduce cycle time. True.

Just-in-time (JIT) manufacturing is a production strategy that strives to improve a business's return on investment by reducing in-process inventory and associated expenses. It achieves this by producing only when customer demand requires it.

8. Cost of prevention is often part of the project budget, but the cost of failure usually happens after the project is completed. True.

It is correct that the cost of prevention is typically part of the project budget, while the cost of failure frequently happens after the project is completed.

To avoid the expense of failure, project teams must pay careful attention to risk management by identifying potential risks, evaluating the likelihood of each risk, and creating a contingency plan to address each risk.

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Please solve
5. (-/20 Points] DETAILS ASWMSCI15 4.E.009. MY NOTES ASK YOUR TEACHER PRACTICE ANOTH A linear programming computer package is needed. Epsilon Airlines services predominately the eastern and southeaste

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In conclusion, the use of a Linear Programming computer package can significantly benefit Epsilon Airlines. By optimizing their resources and schedules, they can increase profits and make the most of their time.

Linear Programming (LP) is a mathematical optimization method used to determine the best possible outcome in a situation with several linear relationships. A Linear Programming computer package is a program that uses algorithms to calculate the best possible solution to a set of linear constraints. This type of optimization is frequently used in business, economics, engineering, and other fields.
Epsilon Airlines primarily services the eastern and southeastern regions. They need a Linear Programming computer package to assist them in selecting the best routes, and scheduling flights to provide the greatest benefit. This will help them to make better use of their resources and time, resulting in increased profits.
The computer package will analyze a set of linear constraints and optimize them for the airline's goals. For instance, they may want to improve profits by reducing costs or increasing sales. The package will evaluate the linear relationships to determine which routes are most profitable and how many flights to schedule.

In conclusion, the use of a Linear Programming computer package can significantly benefit Epsilon Airlines. By optimizing their resources and schedules, they can increase profits and make the most of their time. Since Epsilon Airlines primarily services the eastern and southeastern regions, the package will help them determine the best possible routes and scheduling to meet their objectives.

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Which of the following bonds offers the highest current yield? a. A(n) 3.24%, 19-year bond quoted at 44.266. b. A(n) 5.40%, 28-year bond quoted at 73.777. c. A(n) 1.62%, 23-year bond quoted at 22.133. The current yield of the bond in part a is % (Round to two decimal places.) The current yield of the bond in part bis %. (Round to two decimal places.) The current yield of the bond in part c is %. (Round to two decimal places.)

Answers

Among the given options, bond b with a current yield of 3.98% offers the highest current yield.

To determine which bond offers the highest current yield among the options given, we need to calculate the current yields for each bond and compare them. The current yield is calculated by dividing the annual interest payment by the market price of the bond and expressing it as a percentage.

Let's calculate the current yields for each bond:

a. A 3.24%, 19-year bond quoted at 44.266:

Current Yield = (Annual Interest Payment / Market Price) * 100

Current Yield = (3.24% / 100) * 44.266

Current Yield = 1.43% (rounded to two decimal places)

b. A 5.40%, 28-year bond quoted at 73.777:

Current Yield = (Annual Interest Payment / Market Price) * 100

Current Yield = (5.40% / 100) * 73.777

Current Yield = 3.98% (rounded to two decimal places)

c. A 1.62%, 23-year bond quoted at 22.133:

Current Yield = (Annual Interest Payment / Market Price) * 100

Current Yield = (1.62% / 100) * 22.133

Current Yield = 0.36% (rounded to two decimal places)

Comparing the current yields, we find that:

Bond a has a current yield of 1.43%.

Bond b has a current yield of 3.98%.

Bond c has a current yield of 0.36%.

Therefore, among the given options, bond b with a current yield of 3.98% offers the highest current yield.

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True or False: Both Idi Amin (Uganda) and Jean-Badel
Bokassa (Central African Republic) were legal functionaries in the
colonial systems, trained by France and Belgium,
respectively.

Answers

False. Neither Idi Amin nor Jean-Badel Bokassa were legal functionaries in the colonial systems trained by France and Belgium, respectively.

Idi Amin was a military officer who seized power in a military coup in Uganda in 1971. He ruled as the President of Uganda until he was overthrown in 1979. He did not receive formal training in the colonial system.

Jean-Badel Bokassa was also a military officer who seized power in a coup in the Central African Republic in 1966. He later declared himself Emperor Bokassa I and ruled until he was overthrown in 1979. While he had some military training from French military institutions, he was not a legal functionary trained by France in the colonial system.

Therefore, both statements are false.

The correct question  is:

True or False: Both Idi Amin (Uganda) and Jean-Badel Bokassa (Central African Republic) were legal functionaries in the colonial systems, trained by France and Belgium, respectively.

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consider this erd level 2 diagram. this design will allow rick's brick & cue to track the total cost of goods sold for items on their menu.

Answers

Please provide the erd level 2 diagram

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