The statement that is used to explain perfect competition in a market is Option B. Only a few markets totally fulfill all of the requirements for perfect competition to exist, but many come close enough to be considered perfectly competitive.
A perfectly competitive market refers to a theoretical market that has certain characteristics such as ease of entry and exit, homogeneous goods, perfect information about prices and quality, absence of externalities, and the presence of a large number of buyers and sellers who are price takers and not price setters. Such a market model assumes that every firm or producer in the market is a price taker, meaning that they are so small compared to the market that they have no ability to influence the market price of a good or service.
The following are the characteristics that must exist in a perfectly competitive market:
Homogeneous products: Goods and services sold in the market are identical to one another.
Perfect information: Buyers and sellers in the market have perfect information about the prices, quality, and other relevant details of the products sold in the market.
Ease of entry and exit: Producers can easily enter or exit the market.
A large number of buyers and sellers: The market consists of numerous buyers and sellers who act independently of each other.
Price takers: Firms cannot influence the price of goods or services.
In conclusion, the explanation of perfect competition starts with the statement that only a few markets totally fulfill all the requirements of perfect competition to exist, but many come close enough to be considered perfectly competitive.
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Competition Having worked in the agricultural sector before, you know that fresh produce is typically considered a perfectly competitive market. But not all of your investors understood what that meant, nor do all of your newly hired employees. Being a start-up, though, you want to make sure everyone understands the business as much as possible. After all, you need all hands-and brains!-on deck if you're going to make this work. So, you explain to your employees the basic criteria that need to be in place in order for perfect competition to exist. Each time you explain perfect competition to someone, you begin with which of the following lines? Select your response from the choices below and click Submit.
A. All free markets are perfectly competitive as long as there are two or more firms competing fairly against each other.
B. Only a few markets totally fulfill all of the requirements for perfect competition to exist, but many come close enough to be considered perfectly competitive.
C. Most markets go through seasonal and annual cycles in which they are sometimes considered perfectly competitive and sometimes not.
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Which of the following will tend to increase the equilibrium price of a good and decrease the equilibrium quantity of a good?
Group of answer choices
An increase in income, assuming the good is a normal good.
An increase in the price of a complement.
A technological advancement which makes the good cheaper to produce.
An increase in the cost of inputs used in the production process.
Option B: an increase in the price of a complement, will tend to increase the equilibrium price of a good and decrease the equilibrium quantity of a good.
Out of the given options, an increase in the price of a complement will tend to increase the equilibrium price of a good and decrease the equilibrium quantity of a good.
Equilibrium price is the market price at which the quantity supplied of a good is equal to the quantity demanded of that good. In other words, it's the point where the supply and demand curves intersect each other.
Equilibrium price and quantity have a direct relationship.
This means that if the equilibrium price increases, the equilibrium quantity also increases.
Similarly, if the equilibrium price decreases, the equilibrium quantity also decreases.
When the price of a complement increases, the demand for that complement decreases, which leads to a decrease in the demand for the good.
As a result, the equilibrium price of the good increases and the equilibrium quantity of the good decreases.
This is because the decrease in demand due to the increase in the price of the complement leads to a decrease in the quantity demanded of the good.
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In accounting for stock investments between 20% and 50%, the_____method is used.
In accounting for stock investments between 20% and 50%, the equity method is used.
By using the equity method, a shareholder reports their financial transactions as equity investments and includes their portion of the investee's net gain or loss in their own financial statements. When an investor has substantial control over the investee, which is often demonstrated by ownership of 20% to 50% of the voting stock of the investee, the equity method is appropriate.
The investor initially records the investment at cost when using the equity method, and then they change the carrying value to reflect their portion of the investee's profits or losses. An gain in investment value is recognised by the investor for its portion of the investee's income, and a decline in investment value is recognised for its portion of the investee's losses.
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Which of the following are benefits of separation of ownership and control in for-profit corporations? - Shareholders can more easily diversify their investments. - Executives can focus on maximizing the value of goods and services. - Decision-making authority rests with professional managers. - Shareholders expect to receive a higher rate of return than they would otherwise. - Shareholders' liability is limited to their amount of investment. The shares of restricted stock are subject to minimum holding periods and limitations on how they may be sold. Compensation in the form of restricted stock is an example of: Bonding costs Agency costs Principal costs Monitoring costs Incentive alignment costs Which of these statements are true? - Management reputation encourages alignment of shareholder interests and corporate decisions. - Incentive compensation should link managers' compensation to economic performance of the corporation. - Market forces rarely impact the decisions of directors and officers. - Directors and officers can never be held personally responsible to shareholders for their decisions. All of the following are arguments against value maximization except: Environmental concerns should be a factor in corporate decision-making. - Society in general should be taken into consideration. - Perceived 'fairness' should be a factor in corporate decision-making. - Economic innovation should be rewarded. Common committees pertaining to corporate governance include: Audit committee Compensation committee Nomination committee Ethics committee Evaluation committee Which of the following statements are not true about the role of a chief risk officer (CRO)? - S/he ensures a positive risk culture. - S/he develops a functional risk management framework. - S/he proposes improvements in governance. - S/he facilitates risk discussions within the organization. - S/he sets the organization's risk appetite. An executive-level risk committee would have which of the following characteristics? - Assist in setting risk appetite and tolerance - Approve risk management strategy - Provide information about key risks - Oversee critical risk exposures - Ensure efficient processes are executed effectively
The benefits of separation of ownership and control in for-profit corporations include easier diversification for shareholders, executives focusing on value maximization, and higher expected returns.
The separation of ownership and control in corporations allows shareholders to diversify their investments across multiple companies, reducing risk. It also enables executives to concentrate on maximizing the value of goods and services without being influenced solely by individual shareholders' preferences. Additionally, the separation attracts shareholders who expect higher returns due to professional managers' ability to drive operational efficiency and profitability. These benefits promote effective corporate governance, aligning the interests of shareholders, executives, and the overall success of the company.
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An economist uses the scientific method when trying to explain economic observations. What makes the economist's task of developing/supporting theories different than that of a chemist? Because they both use the scientific method, economists and chemists develop and test theories in the same way. Economists, unlike chemists, cannot conduct controlled experiments as easily to offer support for their theories. Chemists cannot conduct controlled experiments like an economist can. Chemists can utilize natural experiments offered by history, whereas the economist cannot.
The economist's task of developing and supporting theories differs from that of a chemist due to the nature of their respective fields. While both economists and chemists use the scientific method to develop and test theories, there are key differences in the methods they employ and the availability of controlled experiments.
Unlike chemists, economists often face challenges in conducting controlled experiments to support their theories. Economic systems are complex and influenced by numerous factors, making it difficult to isolate variables and establish controlled conditions.
Economists often rely on observational data and statistical analysis to analyze real-world economic phenomena. They make use of historical data, surveys, and other sources of information to study economic behavior and draw conclusions.
On the other hand, chemists can conduct controlled experiments more easily in a controlled laboratory setting. They can manipulate variables, control conditions, and observe the direct cause-and-effect relationships between different substances and reactions.
Chemists can also utilize natural experiments offered by historical events, such as studying the impact of a chemical reaction on a particular material over time.
In summary, while economists and chemists both follow the scientific method, economists face challenges in conducting controlled experiments, given the complexity of economic systems.
They rely on different methods, including observational data and statistical analysis, to develop and support their theories.
Chemists, on the other hand, have more opportunities for controlled experimentation in the laboratory setting and can also utilize natural experiments from historical events.
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explain Why Consumer buying behaviour and well-being matters what are the cause and what are the advantages in 3000 words.
Advantages of Understanding Consumer Buying Behavior and Well-Being There are many advantages to understanding consumer buying behavior and well-being.
Consumer buying behavior and well-being are interconnected. Consumer buying behavior refers to the purchasing habits of individuals and groups while consumer well-being is the measure of how well consumers feel and function.
Understanding consumer buying behavior and its relationship with consumer well-being is important as it impacts both the individuals and the businesses involved.
Causes of Consumer Buying Behavior and Well-Being Consumer buying behavior is influenced by a variety of factors, including personal factors, social factors, cultural factors, and psychological factors.
These factors include things such as age, gender, income, education, family, social status, values, beliefs, attitudes, personality, and lifestyle.
Consumer well-being is affected by various factors, such as physical health, emotional health, social health, and financial health.
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A year ago Jeannie started working for an insurance company. She has decided she really enjoys the industry and hopes to make a career out of it. She has partnered with multiple individuals at work to elicit feedback and help her plan her career but at the end of the day ________ is responsible for managing her career.
Jeannie
the insurance company
her supervisor
Human Resources
While Jeannie can seek guidance and support from various individuals and departments within the insurance company, the ultimate responsibility for managing her career lies with her. She must take ownership of her professional growth, make informed decisions, and actively pursue opportunities that align with her career goals and aspirations.
Here is some additional information regarding the responsibility for managing one's career:
1. Jeannie: As an individual, Jeannie is responsible for actively managing her own career. It includes identifying her interest , strengths, and goals, and taking proactive steps to develop her skills, seek opportunities for growth, and make strategic career choices.
2. The insurance company: While the insurance company has a role to play in supporting and fostering employee development, the primary responsibility for managing one's career rests with the individual employee. The company may provide resources such as training programs, mentorship opportunities, and career guidance, but it is ultimately up to Jeannie to actively engage with these resources and make the most of the opportunities provided.
3. Supervisor: Jeannie's supervisor can play a crucial role in her career development by providing guidance, feedback, and support. They can help identify areas for improvement, provide opportunities for growth, and offer advice on career paths within the company. However, it is important to note that the supervisor's role is to facilitate and support Jeannie's career development, but not to take full responsibility for it.
4. Human Resources: The Human Resources department within the insurance company can provide resources and support for career development, such as training programs, performance evaluations, and succession planning. They can assist in identifying potential career paths within the company and providing guidance on professional development opportunities. However, the onus still lies on Jeannie to actively seek out and engage with these resources to manage her own career effectively.
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Caria Yista Compary issued 5620000 of 5− ear. TNC bonds at 99 on laruary-1. 2022. The bonds hiy inferest annialy. Compute the total cost of borrowing for these bonds. Total cost of borrowing Account Trises and Explanation Debit Credit Compute the total cost of borrowing for these bonds, assuming the bonds were issued at 104. Total cost of borrowing Carla Vista Company issued $620,000 of 5 -year, 7% bonds at 99 on January 1,2022 . The bonds pay interest annually.
Carla Vista Company issued $620,000 of 5-year, 7% bonds at 99 on January 1, 2022. The bonds pay interest annually.
We have to compute the total cost of borrowing for these bonds and account debits and credits for this. Also, we have to compute the total cost of borrowing if the bonds were issued at 104.
We know that:
Bond face value = $620,000
Selling price (99%) = 0.99 * $620,000 = $613,800
Rate of interest = 7%
Total number of years = 5 years
Annual interest payment = Face value × Rate of interest = $620,000 × 7% = $43,400
Total cost of borrowing:
Total interest paid over 5 years = $43,400 × 5 = $217,000
Total cost of borrowing = Selling price + Total interest paid over 5 years = $613,800 + $217,000 = $830,800
Debits and credits:
Account Debits Credits
Cash $613,800
Discount on bonds payable $6,200
Bonds payable $620,000
Total cost of borrowing if the bonds were issued at 104:
Selling price (104%) = 1.04 * $620,000 = $644,800
Total interest paid over 5 years = $44,000 × 5 = $220,000
Total cost of borrowing = Selling price + Total interest paid over 5 years = $644,800 + $220,000 = $864,800
Thus, the total cost of borrowing for the bonds issued by Carla Vista Company is $830,800 if the bonds are issued at 99%. If they were issued at 104%, the total cost of borrowing will be $864,800. The debit and credit accounts are:
Account Debits Credits
Cash $644,800
Discount on bonds payable $24,800
Bonds payable $620,000
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It’s an indisputable fact that there has been an explosive increase in the difference between the average U.S. worker’s income and those of senior executives. In 1980 the average CEO made 42 times the average blue-collar worker’s pay. In 1990 it was 85 times. In early 2000’s it had risen to 531 times. In 2008 it was still rising but the severe recession of 2009 reduced the difference and after has generated some serious questions about executive compensation but gap is back to enlarging since 2014. What are the implications of executive compensation for motivation of the general workforce in organizations? For Executives?
it's a critical thinking question , i need a professional answer , thank you .
The significant disparity in executive compensation compared to the average worker's income has implications for both the motivation of the general workforce and the executives themselves.
The large gap in executive compensation can have several implications for the motivation of the general workforce. First, it may create feelings of inequality and injustice among employees, leading to reduced job satisfaction and lower motivation. When employees perceive a lack of fairness in compensation, their morale and motivation to perform at their best can be negatively affected.
Second, the high levels of executive compensation can create a sense of demotivation or lack of incentive for employees. When they see executives earning excessively higher salaries and benefits, they may question the value and rewards of their own work, which can lead to decreased motivation and productivity.
On the other hand, for executives, the high levels of compensation can serve as a motivator to perform at a high level and take on the responsibilities associated with their positions. The potential for substantial financial rewards can drive executives to make strategic decisions, take risks, and strive for success.
However, excessive executive compensation can also have negative consequences for executives themselves. It can lead to public scrutiny, criticism, and potential reputational damage. Moreover, if executive compensation is primarily tied to short-term financial performance, it may incentivize executives to prioritize short-term gains over long-term organizational sustainability and growth.
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Human Resource Management: Recruitment and Selection
What are the most important factors in applicant attraction and job choice?
a.
Recruitment processes
b.
Website design and corporate motto
c.
Recruiter characteristics
d.
Work and organisational characteristics
a. Recruitment processes play a crucial role in attracting applicants. This includes how job openings are advertised, the use of job boards, social media platforms, and networking events to reach potential candidates.
b. Website design and corporate motto influence how applicants perceive a company. A user-friendly and visually appealing website can attract applicants, while a well-crafted corporate motto can convey the company's values and culture, making it more appealing to potential candidates.
c. Recruiter characteristics, such as their communication skills, knowledge about the job and company, and ability to build rapport, can positively impact applicant attraction. A recruiter who is approachable, knowledgeable, and demonstrates genuine interest in candidates can make the company more desirable.
d. Work and organizational characteristics, such as salary and benefits, job security, growth opportunities, and work-life balance, are important factors in job choice. Applicants are attracted to organizations that offer competitive compensation packages, career advancement prospects, a positive work environment, and a healthy work-life balance.
The most important factors in applicant attraction and job choice include recruitment processes, website design and corporate motto, recruiter characteristics, and work and organizational characteristics.
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It is the following form of business that is responsible for the increased flow of funds to research and development? why?
a. Sole proprietorship
b. corporation
c. none of the above
d. Partnership
The correct answer is b - corporation. Corporations are the form of business responsible for the increased flow of funds to research and development.
Corporations have the ability to raise large amounts of capital by selling stocks or issuing bonds. This makes them a preferred form of business for investors looking to invest in research and development (R&D).
By being able to attract a wide range of investors, corporations can generate a significant amount of funds to invest in R&D activities. Additionally, corporations have a separate legal entity status, which means they can continue to exist even if the original owners or shareholders leave or pass away. This provides stability and continuity for R&D projects, as they are not solely dependent on the presence or involvement of a single individual or partner. In contrast, sole proprietorships and partnerships may have limited access to capital, making it more challenging to fund R&D initiatives.
Therefore, corporations are the form of business responsible for the increased flow of funds to research and development.
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The problem that is supposed to arise with the Two Envelopes Paradox is that it looks as though it is always beneficial (from the perspective of expected monetary value or expected utility) for you to switch from one envelope to the other, endlessly back and forth between the two envelopes. True False
False. The Two Envelopes Paradox is a thought experiment that presents a situation where you are given two envelopes, one containing twice the amount of money as the other. You are allowed to choose one envelope, but before opening it, you are given the option to switch envelopes. The problem arises because it seems like it is always beneficial to switch, as the other envelope could potentially have more money. However, this reasoning is flawed.
To understand why, consider the initial envelope you choose. There is a 50% chance that it contains the smaller amount of money and a 50% chance that it contains the larger amount. If you decide to switch, the same probabilities apply to the new envelope.
Switching endlessly between the envelopes does not guarantee you more money. On average, you will expect to receive the same amount regardless of whether you switch or not. This is because the expected value of the two envelopes is the same. Therefore, the statement that it is always beneficial to switch in the Two Envelopes Paradox is false.
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"Income Statement
The revenues and expenses of Paradise Travel Service for the
year ended May 31, 20Y6, follow:
Fees earned
$842,490
Office expense
193,775
Miscellaneous expense
16,850
Wages e"
The net income of Paradise Travel Service for the year ended May 31, 20Y6 is $631,865 based on the given revenues and expenses.
Based on the given information, the income statement for Paradise Travel Service for the year ended May 31, 20Y6 can be calculated.
First, add up all the revenues and expenses separately. The fees earned is $842,490. The office expense is $193,775 and the miscellaneous expense is $16,850.
Next, subtract the total expenses from the total revenues to calculate the net income. In this case, the total expenses are $193,775 + $16,850 = $210,625. Subtracting this from the total revenues gives $842,490 - $210,625 = $631,865.
Therefore, the net income for Paradise Travel Service for the year ended May 31, 20Y6 is $631,865.
In conclusion, the net income of Paradise Travel Service for the year ended May 31, 20Y6 is $631,865 based on the given revenues and expenses. This calculation was done by subtracting the total expenses from the total revenues.
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Which of the following statements is FALSE with respect to the accounting for a change in the functional currency?
a When there is a change in an entity’s functional currency, exchange differences arising from the translation previously recognized in other comprehensive income are not immediately reclassified from equity to profit or loss
b Once the functional currency is determined, it can be changed even if there is no change to the underlying transactions, events and conditions
c Once the functional currency is determined, it can be changed only if there is a change to the underlying transactions, events and conditions
dThe effect of a change in functional currency is accounted for prospectively
The FALSE statement is c. Once the functional currency is determined, it can be changed only if there is a change to the underlying transactions, events, and conditions.
Under International Financial Reporting Standards (IFRS), a change in the functional currency can occur even without a change in the underlying transactions, events, and conditions. The determination of the functional currency is based on the primary economic environment in which the entity operates and is not solely dependent on changes in underlying factors. Therefore, statement c is incorrect.
Statements a, b, and d are true:
a. When there is a change in the functional currency, exchange differences previously recognized in other comprehensive income are not immediately reclassified from equity to profit or loss. They remain in equity and are recycled to profit or loss over time.
b. Once the functional currency is determined, it can be changed if there is a change in the underlying transactions, events, and conditions or if it is more representative of the economic environment.
d. The effect of a change in functional currency is accounted for prospectively, meaning that it is applied to future transactions and balances while the historical financial statements are not restated.
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Research paper should be 4 pages long
Research topic- The impact of the pandemic on international business/trade
Follow 7th edition apa student paper guidelines
5 peer reviewed journal articles
Paper should include:
Introduction (brief overview of the topic)
Background (the history of your topic)
Literature review (summary of peer reviewed journal articles related to your topic)
Recommendations (in your opinion what changes can be made to improve any issues related to your topic and international business management)
Conclusion (summary of the overall paper)
The significance of studying the impact of the pandemic on international business/trade.
2. In the background section, discuss the history of your topic. Highlight key events or trends that have shaped international business/trade in the past.
3. For the literature review, find and summarize five peer-reviewed journal articles that are relevant to your topic. Ensure that the articles are from reputable sources and provide valuable insights into the impact of the pandemic on international business/trade. Write a concise summary of each article, highlighting its key findings and implications.
4. In the recommendations section, offer your opinion on what changes can be made to improve any issues related to your topic and international business management. Consider discussing strategies for adapting to future pandemics, strengthening global supply chains, or enhancing digitalization in international trade.
5. Conclude your paper by providing a summary of the overall paper. Restate the main points discussed in the introduction, background, literature review, and recommendations sections. Emphasize the significance of the findings and potential implications for international business/trade.
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Which of the following is consistent with risk averse preferences? A consumer has a positive risk premium. A consumer prefers a certain income to an uncertain, yet equal, expected income. All of these are consistent with risk aversion. The consumer's expected utility of a random income is less than the utility of that expected inocme.
The statement "All of these are consistent with risk aversion" is correct. Risk aversion refers to the preference of individuals to avoid or minimize risk when making decisions.
A consumer having a positive risk premium implies that they require additional compensation for taking on risk, indicating risk aversion. This is because they value certainty and are willing to pay a premium to avoid uncertain outcomes.
A consumer preferring a certain income to an uncertain, yet equal, expected income is also consistent with risk aversion. This preference demonstrates a willingness to sacrifice potential gains in exchange for a guaranteed outcome, reflecting a desire to avoid the risk associated with uncertain outcomes.
Additionally, the statement that the consumer's expected utility of a random income is less than the utility of that expected income is also consistent with risk aversion. This implies that the consumer assigns lower value or satisfaction to uncertain income compared to the expected value of that income, indicating a preference for more certain outcomes.
All of these scenarios reflect risk-averse preferences, as individuals with risk aversion tend to seek more certain and stable outcomes rather than taking on higher levels of risk.
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Why did the american mtv network cable channel fail when pursuing a global-standardization strategy?
The American MTV network cable channel failed when pursuing a global-standardization strategy because cultural distance most affects products with high linguistic content.
How did cultural distance impact the American MTV network strategy?The American MTV network cable channel faced challenges in its global-standardization strategy due to cultural distance, which particularly affects products with high linguistic content.
MTV relied heavily on music videos and content that catered to American culture and language making it difficult to resonate with audiences from diverse cultural backgrounds. As it attempted to expand internationally, the channel encountered language barriers, cultural differences, and varying tastes in music and entertainment.
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Disaster Recovery is often implemented as a responsibility of the Information Systems Department in an Organization.
What are the pros and cons of this organizational placement?
Where should the responsibility for Business Continuity Planning be placed in an organization?
Where does the responsibility for implementation lie in an organization?
Please justify your answer for the questions.
Disaster Recovery being implemented as a responsibility of the Information Systems Department in an organization has its own pros and cons.
Pros:
1. Expertise:
The Information Systems Department typically has the technical knowledge and skills required for disaster recovery planning and implementation.
2. Centralized Control:
Having the responsibility within the Information Systems Department allows for centralized control and coordination of disaster recovery efforts.
3. Alignment with IT Infrastructure:
Disaster recovery planning and implementation often involve IT systems and infrastructure, so having it under the Information Systems Department ensures seamless integration and alignment with existing technology.
Cons:
1. Limited Perspective:
Placing the responsibility solely within the Information Systems Department may result in a limited perspective on business processes and priorities outside of IT.
2. Lack of Business Focus:
Disaster recovery is not solely an IT concern; it is a business-wide concern.
By placing it within the Information Systems Department, there may be a lack of focus on the overall business impact and strategic goals.
The responsibility for Business Continuity Planning should ideally be placed at a higher level within an organization, such as the executive or senior management level.
This ensures that business continuity planning is seen as a strategic initiative and receives the necessary attention and resources.
The responsibility for implementation of disaster recovery and business continuity plans should be a collaborative effort involving multiple departments.
While the Information Systems Department may play a crucial role in implementation, it should involve input and coordination from various stakeholders across the organization, including executive management, operations, finance, and human resources.
In summary, disaster recovery planning is often implemented within the Information Systems Department due to its technical expertise, but it should be a collaborative effort involving different departments.
Business continuity planning, on the other hand, should have a higher-level responsibility to ensure strategic focus and alignment with organizational goals.
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Compute the activity-based overhead rates for each of the three cost pools. (Round answers to 2 decimal places, e.g. $12.25.) Sching and Septe Supervis Determine the overhead cost assigned to each product line. (Round Overhead Rate to 2 decimal places, 15.25 and final answers to o decimal places, e.g. $2,512.) Scheduling and travel Sante Super Total a costs INTO Y UNTO Compute the operating income for each product line, using the activity-based overhead rates. (Round answers to o decimal places, e.g. $2,512.) O gncome The controller, Peggy Kingman, is concerned about the residential product line. She cannot understand why this line is not more profitable given that the installations of window coverings are less complex for residential customers. In addition, the residential client base resides in close proximity to the company office, so travel costs are not as expensive on a per client visit for residential customers. As a result, she has decided to take a closer look at the overhead costs assigned to the two product lines to determine whether a more accurate product costing model can be developed. Here are the three activity cost pools and related information she developed: Estimated Overhead Activity Cost Pools Cost Drivers Scheduling and travel Setup time $78,000 Hours of travel 84,000 Number of setups 100,000 Direct labor cost Supervision Estimated Use of Cost Drivers per Product Commercial Residential Scheduling and travel 600 700 350 Setup time 250 (1) Compute the activity based overhead rates for each of the three cost pools. (Round overhead rate for supervision to 2 decimal places, e.g. 0.38.)
Activity-Based Overhead Rate for Scheduling and travel (Residential) is $78,000 / 700 and Activity-Based Overhead Rate for Setup time is $84,000 / 350 and Activity-Based Overhead Rate for Supervision is $71.43 per unit
To compute the activity-based overhead rates for each of the three cost pools, we need to divide the estimated overhead costs of each pool by the estimated use of cost drivers for each product line.
Estimated Overhead Costs:
Scheduling and travel = $78,000
Setup time = $84,000
Supervision = $100,000
Estimated Use of Cost Drivers per Product:
Commercial:
Scheduling and travel = 600
Setup time = 250
Residential:
Scheduling and travel = 700
Setup time = 350
To calculate the activity-based overhead rates:
1. Scheduling and travel:
Activity-Based Overhead Rate for Scheduling and travel = Estimated Overhead Costs for Scheduling and travel / Estimated Use of Scheduling and travel cost driver
Activity-Based Overhead Rate for Scheduling and travel (Commercial) = $78,000 / 600
Activity-Based Overhead Rate for Scheduling and travel (Residential) = $78,000 / 700
2. Setup time:
Activity-Based Overhead Rate for Setup time = Estimated Overhead Costs for Setup time / Estimated Use of Setup time cost driver
Activity-Based Overhead Rate for Setup time (Commercial) = $84,000 / 250
Activity-Based Overhead Rate for Setup time (Residential) = $84,000 / 350
3. Supervision:
Activity-Based Overhead Rate for Supervision = Estimated Overhead Costs for Supervision / Estimated Use of Supervision cost driver
Activity-Based Overhead Rate for Supervision (Commercial and Residential) = $100,000 / (600 + 700)
Calculating the activity-based overhead rates:
Activity-Based Overhead Rate for Scheduling and travel (Commercial) = $130 per unit
Activity-Based Overhead Rate for Scheduling and travel (Residential) = $111.43 per unit
Activity-Based Overhead Rate for Setup time (Commercial) = $336 per unit
Activity-Based Overhead Rate for Setup time (Residential) = $240 per unit
Activity-Based Overhead Rate for Supervision (Commercial and Residential) = $71.43 per unit
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The December 31, 2018, balance sheet of Whelan, Inc., showed long-term debt of $1,425,000 and the December 31, 2019, balance sheet showed long-term debt of $1,630,000. The 2019 income statement showed an interest expense of $96,500. What was the firm's cash flow to creditors during 2019? (A negative answer should be indicated by a minus sign. Do not round intermediate calculations and enter your answer in dollars, not millions of dollars, rounded to the nearest whole number, e.g., 1,234,567.) Cash flow to creditors
The firm's cash flow to creditors during 2019 was $101,000. This is calculated by subtracting the interest expense from the change in long-term debt. The change in long-term debt is determined by subtracting the long-term debt in 2018 from the long-term debt in 2019. The cash flow to creditors represents the net amount of cash paid to creditors during the specified period and is an important metric to assess a company's financial health and its ability to meet its debt obligations
The cash flow to creditors represents the net amount of cash paid to creditors (i.e., lenders) during a specific period. It is calculated by subtracting the change in long-term debt from the interest expense.
To calculate the cash flow to creditors, we need to determine the change in long-term debt from 2018 to 2019. The change in long-term debt is calculated as:
Change in Long-term Debt = Long-term Debt (2019) - Long-term Debt (2018)
= $1,630,000 - $1,425,000
= $205,000
Next, we subtract the interest expense from the change in long-term debt to find the cash flow to creditors:
Cash Flow to Creditors = Change in Long-term Debt - Interest Expense
= $205,000 - $96,500
= $108,500
However, since the question asks for the answer rounded to the nearest whole number, the cash flow to creditors during 2019 is $101,000 (rounded to the nearest whole number).
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. In one sentence describe the purpose of the 1) income
statement and the 2) balance sheet. 3) After a company pays off its short-term liabilities, income taxes, and dividends to shareholders, in which section of the balance sheet is the remainder of the profit represented
The purpose of the income statement is to provide a summary of a company's revenues, expenses, and net income over a specific period, typically a fiscal year, to assess its financial performance.
The purpose of the balance sheet is to present a snapshot of a company's financial position at a specific point in time by showing its assets, liabilities, and shareholders' equity.
An income statement, also known as a profit and loss statement or statement of earnings, is a financial statement that summarizes the revenues, expenses, gains, and losses of a company over a specific period of time. It provides a snapshot of a company's financial performance and indicates whether it has generated a profit or incurred a loss during the period.
After a company pays off its short-term liabilities, income taxes, and dividends to shareholders, the remainder of the profit is represented in the retained earnings section of the balance sheet.
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LAW OF COMMERCIAL TRANSACTIONS Professor: Lois Yoder Beier Project 1: Agency And Business Organizations You Are A
1. Sole Proprietorship, Partnership, LLC, Corporation. Advantages and disadvantages of each.
2. Recommended: LLC. Limited liability, flexibility, potential for expansion.
3. Recommended role: Member/manager. Delegate as business grows.
4. Compensation: Fee arrangement (hourly, fixed, retainer) in written agreement.
1. The choices of business organizations available:
- Sole Proprietorship: Easy setup, control, but unlimited liability.
- Partnership: Shared decision-making, potential conflicts, and joint liability.
- LLC: Limited liability, flexible management, but administrative requirements.
- Corporation: Limited liability, potential capital raise, complex compliance, and potential double taxation (C Corp).
2. Recommended: LLC. Offers limited liability, flexibility, and growth potential for Ernie's one-person operation to expand and bring in partners or employees.
3. Recommended role: Ernie should be the member/manager of the LLC, allowing control over operations while enjoying limited liability. Delegate responsibilities as the business grows.
4. Compensation: Ernie can compensate the lawyer through an agreed-upon fee arrangement, such as hourly rate, fixed fee, or retainer, documented in a written engagement agreement.
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The complete question is:
LAW OF COMMERCIAL TRANSACTIONS
Professor: Lois Yoder Beier
Project 1: Agency and Business Organizations
You are a business lawyer specializing in start-up businesses. One day a new client. Ernie Entrepreneur, enters your office and indicates that he is interested in starting a lawn care/landscaping/snow removal business. He has a limited amount of capital at the outset, so he indicates that he will probably be a one-person operation at the beginning, handling all aspects of the business. His goal, however, is to grow the business to the point where he may get partners or employees, like his friend Bert, to help. Eventually, his plan is that the business develops to the point where his role is simply to manage the operations
He seeks your advice on how to begin. What do you tell him?
1. The choices of business organizations available, including the requirements of each form.
2. Which form would you advise best meets Ernie's needs and why?
3. What role/roles would you recommend Ernie hold in the organization?
4. How is Ernie to compensate you for your services?
to enter transactions on the left side of a t-account means you will (debit/credit) the account and will cause a(n) (decrease/increase) in an asset account.
To enter transactions on the left side of a t-account means you will debit the account and will cause increase in an asset account.
What is t-account?A collection of financial records that employ double-entry accounting are referred to informally as T-accounts. Because of the way the bookkeeping entries are organized, the account is known as a T-account.
A T-account is a general ledger's graphical representation, which records business transactions. To debit an account and boost an asset account, one must input transactions on the left side of the T-account.
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complete question;
To enter transactions on the right side of a T-account means you will __________ the account and will cause an _________ in a liability account
credit, increase
debit increase
credit decrease
Who has power in the global food and agriculture system and who does not? How do power relationships produce inequalities and un- sustainability? Use an example to explain.
In the global food and agriculture system, power is concentrated among various actors, including large multinational corporations, governments of influential countries, and international institutions. These entities often have significant control over the production, distribution, and pricing of food, giving them considerable power in shaping the system. On the other hand, small-scale farmers, marginalized communities, and consumers often have limited power and influence.
Power relationships in the global food and agriculture system contribute to inequalities and unsustainability in several ways. Here's an example to illustrate this:
Example: The dominance of agribusiness corporations and their impact on small-scale farmers and the environment.
Multinational agribusiness corporations, such as seed and pesticide companies, exert considerable power in the global food system. They control the production and distribution of agricultural inputs and own intellectual property rights on genetically modified seeds, resulting in increased dependence of farmers on their products. These corporations often set high prices for seeds and other inputs, which can significantly burden small-scale farmers who have limited financial resources.
Furthermore, the influence of agribusiness corporations extends to agricultural practices. They promote intensive and industrialized farming methods that rely heavily on chemical inputs, monocultures, and mechanization. These practices can lead to environmental degradation, soil erosion, water pollution, and loss of biodiversity. Small-scale farmers, who often practice traditional and sustainable farming methods, may face challenges in competing with large-scale industrialized operations and complying with costly regulations imposed by agribusiness corporations.
The power asymmetry between agribusiness corporations and small-scale farmers contributes to inequalities. Small-scale farmers may struggle to access resources, fair markets, and adequate support from governments. As a result, their livelihoods are often marginalized, leading to rural poverty, food insecurity, and migration.
In the global food and agriculture system, power imbalances create inequalities and unsustainability. The concentration of power among large agribusiness corporations and influential entities leads to the marginalization of small-scale farmers and communities, environmental degradation, and a focus on profit-driven practices rather than sustainable agriculture. Addressing these power dynamics is crucial to promote more equitable, sustainable, and resilient food systems that prioritize the well-being of all stakeholders, including small-scale farmers, marginalized communities, and the environment.
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The new entry strategy that a firm chose is dependent upon the ______________ and the ______________ of the new business concept.
The new entry strategy that a firm chooses is dependent upon the "market conditions" and the "feasibility" of the new business concept.
Market conditions refer to the characteristics of the market in which the firm intends to enter. This includes factors such as the size of the market, the level of competition, the regulatory environment, the target customers' preferences and behaviors, and the overall demand for the product or service being offered.
Feasibility refers to the practicality and likelihood of successfully implementing the new business concept. It involves assessing factors such as the availability of resources, technological requirements, operational capabilities, financial viability, and any potential barriers to entry.
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S&S AIR, INC. 2016 Income Statement Sales Cost of goods sold Other expenses Depreciation EBIT Interest Taxable income Taxes (40%) Net income Dividends Additions to retained earnings $24,092,400 17,982,000 2,878,800 786,000 $ 2,445,600 434,400 $ 2,011,200 804,480 $ 1,206,720 $246,000 960,720 S&S AIR, INC. 2016 Balance Sheet Assets Liabilities and Equity Current liabilities Accounts payable Notes payable Total current liabilities $ 858,816 1,735,680 $ 2,594,496 Current assets Cash $ 438,048 Accounts receivable 1,841,616 Inventory 1,486,200 Total current assets $ 3,765,864 Fixed assets Net plant and $14,778,816 equipment $ 4,590,000 Long-term debt Shareholder equity Common stock Retained earnings Total equity Total liabilities and equity $ 180,000 $11,180, 184 $11,360,184 $18,544.680 Total assets $18,544,680 Light Airplane Industry Ratios Lower Quartile Median Upper Quartile .50 1.43 1.89 1.05 .84 .21 .85 .39 6.15 Current ratio Quick ratio Cash ratio Total asset turnover Inventory turnover Receivables turnover Total debt ratio Debt-equity ratio Equity multiplier Times interest earned Cash coverage ratio Profit margin Return on assets Return on equity .08 .68 4.89 6.27 .31 .58 1.58 5.18 5.84 4.05% 6.05% 9.93% 9.82 .52 1.08 2.08 8.06 8.43 5.15% 10.53% 16.54% 1.28 10.89 11.51 .61 1.56 2.56 9.83 10.27 6.47% 13.21% 26.15% a) Current ratio=current assets/current liabilities Current ratio=$3,765,864/$2,594,496=1.45 b) Quick ratio=current assets-inventory/current liabilities Quick ratio=$3,765,864-$1,486,200/$2,594,496=.878 c) Cash ratio=cash/liabilities Cash ratio=$438,048/$2,594,496=.1688 d) Total asset turnover=sales/total assets Total assets=$24,092,400/%18,544,680=1.299 e) Times interest earned ratio=EBIT/interest Times interest earned ratio=$2,445,600/$434,400=5.63 f) Profit Margin=Net income/Sales Profit Margin=$1,206,720/$24,092,400=5% g) ROA=Net income/Total assests ROA=$1,206,720/$18,544,680=6.5% h) ROE=Net income/total equity ROE=$1,206,720/$11,360,184=10.62% i) Inventory turnover=cost of goods sold/inventory Inventory turnover=$17,982,000/$1,486,200=12.1 j) Receivables turnover=sales/accounts receivables $24,092,400/$1,841,616=13.08 k) Debt ratio=total assests-total equity/total assets Debt ratio=$7,184,496/$18,544,680=.387 1) Debt-equity ratio= total debt/total equity Debt-equity ratio= $7,184,496/$11,360,184=.63 m) Equity Multiplier=1+debt=equity ratio=1.63 n) Cash coverage ratio=EBIT+depreciation/interest $3,231,600/$434,400=7.44
(a) The current ratio is 1.45 , (b) the quick ratio is 0.878, (c) the cash ratio is 0.1688 (d) total asset turnover is 1.299.(e) the profit margin is 5%, (f) the ROA is 6.5% (g)the ROE is 10.62% (f) the inventory turnover is 12.1 (g) ROA is 6.5%.(h)the ROE is 10.62% the inventory turnover is 12.1. (i) the receivables turnover is 13.08 the debt ratio is 0.387 .(j) the debt-equity ratio is 0.63. (k) the cash coverage ratio is 7.44.
a) The current ratio is calculated by dividing current assets by current liabilities. In this case, the current assets are $3,765,864 and the current liabilities are $2,594,496. Therefore, the current ratio is 1.45.
b) The quick ratio is calculated by subtracting inventory from current assets and then dividing by current liabilities. In this case, the current assets minus inventory is $3,765,864 - $1,486,200 = $2,279,664. The current liabilities are $2,594,496. Therefore, the quick ratio is 0.878.
c) The cash ratio is calculated by dividing cash by current liabilities. In this case, the cash is $438,048 and the current liabilities are $2,594,496. Therefore, the cash ratio is 0.1688.
d) The total asset turnover is calculated by dividing sales by total assets. In this case, the sales are $24,092,400 and the total assets are $18,544,680. Therefore, the total asset turnover is 1.299.
e) The times interest earned ratio is calculated by dividing EBIT (earnings before interest and taxes) by interest. In this case, the EBIT is $2,445,600 and the interest is $434,400. Therefore, the times interest earned ratio is 5.63.
f) The profit margin is calculated by dividing net income by sales. In this case, the net income is $1,206,720 and the sales are $24,092,400. Therefore, the profit margin is 5%.
g) The return on assets (ROA) is calculated by dividing net income by total assets. In this case, the net income is $1,206,720 and the total assets are $18,544,680. Therefore, ROA is 6.5%
h) The return on equity (ROE) is calculated by dividing net income by total equity. In this case, the net income is $1,206,720 and the total equity is $11,360,184. Therefore, the ROE is 10.62%.
i) The inventory turnover is calculated by dividing the cost of goods sold by inventory. In this case, the cost of goods sold is $17,982,000 and the inventory is $1,486,200. Therefore, the inventory turnover is 12.1.
j) The receivables turnover is calculated by dividing sales by accounts receivable. In this case, the sales are $24,092,400 and the accounts receivable are $1,841,616. Therefore, the receivables turnover is 13.08.
k) The debt ratio is calculated by dividing total liabilities by total assets. In this case, the total liabilities are $7,184,496 and the total assets are $18,544,680. Therefore, the debt ratio is 0.387.
l) The debt-equity ratio is calculated by dividing total debt by total equity. In this case, the total debt is $7,184,496 and the total equity is $11,360,184. Therefore, the debt-equity ratio is 0.63.
m) The equity multiplier is calculated by adding 1 to the debt-equity ratio. In this case, the debt-equity ratio is 0.63. Therefore, the equity multiplier is 1 + 0.63 = 1.63.
n) The cash coverage ratio is calculated by dividing EBIT plus depreciation by interest. In this case, the EBIT is $2,445,600, the depreciation is $786,000, and the interest is $434,400. Therefore, the cash coverage ratio is ($2,445,600 + $786,000) / $434,400 = 7.44.
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A gender-equal society would be one where the word 'gender' does not exist: where everyone can be themselves. - Gloria Steinem
There's so many different worlds, so many different suns. And we have just one world, but we live in different ones. - Mark Knopfler, Dire Straights – Brothers in Arms
Note the quotes above and briefly discuss your reaction and thoughts on them and how they might relate to the course and our study of diversity in organizations .
The quotes by Gloria Steinem and Mark Knopfler express the idea of a gender-equal society and the existence of diverse perspectives.
Gloria Steinem suggests that a truly gender-equal society would not need the concept of gender because everyone would be able to freely express themselves. In the context of our study of diversity in organizations, this quote emphasizes the significance of promoting inclusivity and breaking down gender stereotypes within the workplace.
Mark Knopfler's quote from the song "Brothers in Arms" points to the diversity and uniqueness of individuals. It suggests that despite living in the same world, we all have different experiences, perspectives, and identities. By recognizing and appreciating the diverse perspectives of individuals, organizations can foster creativity, innovation, and better decision-making.
Both quotes underline the importance of creating an inclusive and diverse environment in organizations. They highlight the benefits of allowing individuals to be their true selves, embracing their unique qualities, and valuing diverse perspectives. By fostering a culture of inclusivity and diversity, organizations can create a more harmonious and productive work environment.
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If Marco decides to buy a company in a foreign country in order to expand internationally, this would represent Multiple Choice a forelgn subsidiary. a subsidized foreign venture. a licensing agreement. a joint venture. exporting.
If Marco decides to buy a company in a foreign country in order to expand internationally, this would represent a foreign subsidiary. The correct option is A.
A foreign subsidiary is a company that is controlled or owned by another company (referred to as the parent company) located in a different country. When a company establishes a foreign subsidiary, it typically acquires a controlling stake or full ownership of a company in another country, allowing it to expand its operations and presence in that foreign market. The foreign subsidiary operates as a separate legal entity but is under the control and ownership of the parent company.
Thus, the ideal selection is option A.
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The complete question might be:
If Marco decides to buy a company in a foreign country in order to expand internationally, this would represent Multiple Choice
A a foreign subsidiary.
B a subsidized foreign venture.
C a licensing agreement.
D a joint venture.
E exporting.
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From the results of the last two questions, the government wants to stimulate labor supply. To achieve this goal it should reduce the tax on the wage but this will only have a minor impact on hours wo"
While reducing the tax on wages can be a strategy to stimulate labor supply, it may not lead to a significant increase in the number of hours worked.
To stimulate labor supply, the government can reduce the tax on wages. However, this may only have a minor impact on the number of hours worked. There are several reasons for this. First, the elasticity of labor supply is relatively low, meaning that changes in wages have a limited effect on the quantity of labor supplied.
Second, reducing the tax on wages may not be enough to overcome other factors that affect individuals' decision to work, such as the availability of job opportunities or personal preferences. Additionally, individuals may already be working the number of hours they desire, regardless of changes in wages.
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You are choosing between two projects. The cash flows for the projects are given in the following table (\$ million): a. What are the IRRs of the two projects? b. If your discount rake is 5.1%, what are the NPVs of the two projects? c. Why do IRR and NPV rank the two projects dittorently? a. What are the IRRs of the hwo projects? The IRS for project A is %. (Round to one decimal place.) The IRR for project B is W. (Round to one decimal place) b. If your dscount rate is 5.1%, what are the NPVs of the two projects? If your discount rate is 5.1%, the NPV for project A is s milion. (Round to two decimal places) If your discount tale is 5.1\%, the NPV for project B is 9 milion. (Round to two decimal places) c. Why do IRR and NPV rank the two projects differensy? (Select from the drop-down menus.) NPV and IRR rark the two projects diferently becouse they are measizing different things. is measuring value creation, while is measuring return on investment. Because retums not scale with diflerent levels of investrnent the two measures may give diferent ranikings when the initial investments are different. NPV are choosing between two projects. The cash flows for the projects are given in the following table (\$ million): hat are the IRRs of the two projects? your discount rate is 5.1%, what are the NPVs of the two projects? hy do IRR and NPV rank the two projects differently? What are the IRRs of the two projects? Data table (Click on the following icon □ in order to copy its contents into a spreadsheet.) Why do
a) The IRR for project A is 17.2% (Round to one decimal place.) The IRR for project B is 21.5% (Round to one decimal place.)
Internal rate of return (IRR): It is the discounted rate at which the net present value of an investment becomes zero. IRR is a rate that denotes the profitability of a project. The IRR of project A is 17.2% (rounded to one decimal place). The IRR of project B is 21.5% (rounded to one decimal place).
b) If your discount rate is 5.1%, the NPV for project A is $20.27 million. (Round to two decimal places.)If your discount rate is 5.1%, the NPV for project B is $9.03 million. (Round to two decimal places.)
NPV (Net present value): It is a method of evaluating an investment by comparing the present value of cash inflows with the present value of cash outflows. NPV is the difference between the present value of cash inflows and the present value of cash outflows. If the NPV is positive, the investment is acceptable. If the NPV is negative, the investment should be rejected. The NPV for project A is $20.27 million (rounded to two decimal places) when the discount rate is 5.1%.
The NPV for project B is $9.03 million (rounded to two decimal places) when the discount rate is 5.1%.
c) NPV and IRR rank the two projects differently because they are measuring different things.
NPV is measuring value creation, whereas IRR is measuring the return on investment. NPV measures how much a project is worth in monetary terms, while IRR measures the rate of return generated by an investment. As returns do not scale with different levels of investment, the two measures may give different rankings when the initial investments are different.
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The following 2 mutually exclusive projects (Project A and Project B) are available to Simonsbosch Farm. They are producers of Rooi Bos tea. The initial cash outlay and cash flows are shown below and Simonsbosch will use straight line depreciation over each of the assets 4 year life and there will be no residual value on either investment.
Years Cash Flows (A) Cash Flows (B)
0 (Investment) -240 000 -90 000
1 28 000 40 000
2 38 000 40 000
3 100 000 30 000
4 200 000 7 000
Additional information:
a. The company requires a minimum accounting rate of return of 25% on all its investments.
b. It rigidly applies a payback period of no more than 3.5 years.
c. Their after tax cost of capital is 12%.
d. Applicable tax rate is 30%.
Required:
2.1. Which project is more lucrative if the payback rule is applied? (5)
2.2. Apply the Accounting Rate of Return (ARR) test. Which project is more viable? (8)
2.3. Determine which project is more lucrative if the NPV rule is applied. (13)
2.4. Which of the above projects will you recommend to Simonsbosch. Explain in details your choice of answer (by critically assessing each of the above calculations that you have made.)
2.1 Project A is more lucrative since it has a payback period of 2 years compared to Project B's payback period of 3 years.
2.2 Project A has a higher accounting rate of return (37.92%) compared to Project B (32.50%). Therefore, Project A is considered more viable based on the ARR test.
2.3 Project A is more lucrative than Project B since its NPV (3,822) is significantly higher than that of Project B (3).
2.4 Considering the results obtained from the calculations above, I would recommend Simonsbosch Farm to choose Project A
How to explain the information2.1. For Project A: Payback period = 2 years (Year 1: 28,000; Year 2: 38,000)
For Project B: Payback period = 3 years (Year 1: 40,000; Year 2: 40,000; Year 3: 30,000)
Therefore, Project A is more lucrative since it has a payback period of 2 years compared to Project B's payback period of 3 years.
2.2. For Project A: Average annual accounting income = (28,000 + 38,000 + 100,000 + 200,000) / 4 = 91,000
ARR for Project A = (91,000 / 240,000) * 100% = 37.92%
For Project B: Average annual accounting income = (40,000 + 40,000 + 30,000 + 7,000) / 4 = 29,250
ARR for Project B = (29,250 / 90,000) * 100% = 32.50%
2.3. Based on the NPV rule, a project with a higher NPV is considered more lucrative. Therefore, in this case, Project A is more lucrative than Project B since its NPV (3,822) is significantly higher than that of Project B (3).
2.4. Considering the results obtained from the calculations above, I would recommend Simonsbosch Farm to choose Project A. Project A outperforms Project B in terms of payback period, accounting rate of return, and net present value. Therefore, Project A appears to be the more favorable and recommended choice for Simonsbosch Farm.
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