Answer:Volume
I think
Explanation:
Bosco Corp. is considering a new product that would require an investment of ₦10 million now, at t = 0. If the new product is well received, then the project would produce after-tax cash flows of ₦5 million at the end of each of the next 3 years (t = 1, 2, 3), but if the market did not like the product, then the cash flows would be only ₦2 million per year. There is a 50% probability that the market will be good. The firm could delay the project for a year while it conducts a test to determine if demand is likely to be strong or weak. The project's cost and expected annual cash flows would be the same whether the project is delayed or not. The project's WACC is 10.0%. Calculate the value (in thousands) of the project before and after considering the investment timing option.
The project's value before the timing option is ₦3,268 (in thousands), while the project's value after the timing option is ₦8,954 (in thousands).
How do we calculate the value of a project?1. The value (in thousands) of the project before considering the investment timing option can be calculated as follows:
Using the formula for calculating the present value of an ordinary annuity, the present values of cash flows can be calculated as follows:
PV = P * ((1 - (1 / (1 + r))^n) / r) …………………………………. (1)
Where;
PV = Present value cash flows
P = Annual cash flows
r = WACC = 10.0%, or 0.10
n = number of years = 5
Substitute the values into equation (1), we have:
PV when the market is good = ₦5,000 * ((1 - (1 / (1 + 0.10))^5) / 0.10) = ₦18,954
PV when the market is bad = ₦2,000 * ((1 - (1 / (1 + 0.10))^5) / 0.10) = ₦7,582
Project's value before timing option = (Probability the market will be good * (₦18,954 - ₦10,000)) + (Probability the market will be bad * (₦7,582 - ₦10,000)) = (50% * (₦18,954 - ₦10,000)) + (50% * ((₦7,582 - ₦10,000)) = ₦3,268 (in thousands)
2. The value (in thousands) of the project after considering the investment timing option can be calculated as follows:
Since timing is considered, it means the firm will only invest in the project if the market is strong and the annual cash flow will be ₦5 million without any probability.
Therefore, we have:
Project's value after timing option = ₦18,954 - ₦10,000 = ₦8,954 (in thousands)
3. In addition, the value of option wait can be calculated as follows:
Value of option wait = Project's value after timing option - Project's value before timing option = ₦8,954 - ₦3,268 = ₦5,686 (in thousands)
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Economist and politicians argue that few policies regarding trade restriction can help to create domestic job, increase GDP and make a domestic economy more competitive globally. Explain what are those strategies that can be used for this purpose?
Trade Protectionism helps to create domestic jobs, increase GDP and make a domestic economy more competitive globally.
What is trade protectionism?Trade protectionism is described as when a country, or occasionally a collection of countries working together as a trade bloc, erects commerce barriers with the express purpose of defending its economy from potential risks associated with global trade.
Strategies that can be used for this purpose are:
Tariffs, which are taxes on imports from other nations and international markets, are one tactic that can be employed for this aim. Here, the government is enforcing the tariff in an effort to limit the importation of products and services from abroad, safeguard its own industries and businesses that produce these things, and increase tax revenues.Quotas are specific limitations on the volume of a given class of goods, commodities, and products that may be allowed to be imported into a country. A particular group of people or businesses are typically granted import licenses in order to comply with this import quota.subsidies: Government payments to domestic producers are known as subsidies. This can take the form of monetary compensation, loans with low or no interest, tax deductions, or government ownership of common stock in domestic corporations.A country may impose local content requirements by establishing a manufacturing standard requiring that a specified part or parts of a product be manufactured domestically in an effort to reduce imports.Administrative trade policies are composed of laws, rules, and regulations that are intended to make it extremely difficult for someone to import goods or commodities into a specific country.Antidumping laws are put in place by a country to stop products from being sold in foreign markets for significantly less than their manufacturing costs in an effort to capture a sizable portion of that market.By reducing the value of a country's currency in the foreign exchange markets, exchange rate controls can be used to lower the price of a country's exports.To know more about Trade Protectionism refer to: https://brainly.com/question/27622280
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which of the following is the process of coming up with something new? a. Innovation O b. O Business Model c. Creativity d. Design. which of the following is the process of coming up with something new ? a . Innovation O b . O Business Model c . Creativity d . Design .
Innovation is the process of creating something new. Hence, choice A is right.
What do you mean by innovation?
Innovation is the process of coming up with a fresh concept or creating a good or service that has a market value that customers are willing to pay for and meets their requirements and expectations.
Design innovation is a technique used to generate innovation. It focuses on meeting human requirements with available technology and developing a workable business plan to capitalize on this market opportunity.
Hence option A is correct.
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(05.02 MC)
After closing the revenue and expense accounts below, what would the income summary balance be?
Sales: $3,230.00
Advertising Expense:
$765.00
Communications Expense: $150.00
Rent Expense:
$900.00
A credit balance of $1,415.00
A credit balance of $5,045.00
A debit balance of $1,415.00
A debit balance of $5,045.00
The correct option is A. Revenue accounts include the sales accounts after deducting all the expenses from sales accounts a credit balance of $1,415.00 is shown in the revenue and expense account.
What is Revenue Expenditure?
Revenue Expenditure is such expenditure that is incurred during the normal course of business by the company that generally benefits from that expenditure of a year or less than a year.
Given, Sale =$3230
Advertising Expense = $765
Communication Expenses = $150
Rent = $900
Caculation of Income
Income = Sale - Expenses
= $3.230-$765-$150-$900
=$1415.00
Thus, after calculating the Income summary is shown a credit balance of $1415.00
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Please answer the following questions:
1. Maple, a highly motivated entrepreneur plans on applying for a business loan from Bank of
America. She finds out that the percent change in price of business loans increased to 5% last
month. This resulted in a 50% percent change in quantity demanded from 1000 applicants to 500
applicants. What is the business loan's price elasticity?
The price elasticity of the loan taken by the entrepreneur comes out to be 10.
What is the price elasticity of demand?
The price elasticity of demand is an indicator used to determine the sensitivity of demanded quantity with respect to its corresponding price.
Given values:
Change in quantity demanded: 50%
Change in price: 5%
Computation of price elasticity of demand:
[tex]\rm\ Price \rm\ elasticity \rm\ of \rm\ business \rm\ loan=\frac{\rm\ Change \rm\ in \rm\ quantity \rm\ demanded}{\rm\ Change \rm\ in \rm\ price} \\\rm\ Price \rm\ elasticity \rm\ of \rm\ business \rm\ loan=\frac{50\%}{5\%} \\\rm\ Price \rm\ elasticity \rm\ of \rm\ business \rm\ loan=10[/tex]
Therefore, when the change in quantity demanded is 50% with the change in the price is 5%, then the price elasticity of a business loan is equal to 10.
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A flexible budget takes into account
A flexible budget takes into account how changes in production affect the cost.
What is a flexible budget?It should be noted that flexible budget us the tool that's used in the preparation of financial statements.
In this case, a flexible budget takes into account how changes in production affect the cost.
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Which of the following statements is true about the total production of health and the marginal return on new health production in developed nations? Group of answer choices Low total production of health and high marginal return. High total production of health and high marginal return. Low total production of health and low marginal return. High total production of health and low marginal return.
The amount of production health and its marginal return will lead to higher in the countries which are developed.
Option B is the correct answer.
What is production?Production is a process where an entity changes the raw materials into a saleable product through the use of machinery.
In developed countries, the production of health, that is, the relation between the inputs of health and the health of individuals and the marginal return on new production, means, additional returns would be both higher due to advancements in technology and infrastructure.
therefore, there should be higher marginal return as well as higher production health in the developed nations.
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Algorithmic tasks are easier to automate than phronetic tasks.
,○ True
○ False
Algorithmic tasks are easier to automate than phronetic tasks. Therefore it's false.
What are algorithm tasks?It should be noted that algorithmic tasks simply means tasks where one follows a set of prices to achieve a result.
In phronetic tasks, the main goal is to clarify values as power as a basis for praxis.
In this case, it's complicated than algorithm task.
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what does quality refers to ?
Answer:
Quality refers to the standard of something as measured against other things of a similar kind; the degree of excellence of something.
On October 31, 2016, the following data was accumulated to assist the accountant in preparing the adjusting entries for Dependable Realty.
a. Fees accrued but unbilled at October 31 are $9,670.
b. The supplies account balance on October 31 is $3,180. The supplies on hand at October 31 are $910.
c. Wages accrued but not paid at October 31 are $1,220.
d. The unearned rent account balance at October 31 is $9,480, representing the receipt of an advance payment on October 1 of three months' rent from tenants.
e. Depreciation of office equipment is $1,610.
Journal entries record all transactions for a business. Transactions made on October 31, 2016 are recorder in the journal.
What is journal entry?A journal entry is used to record a business transaction in the accounting records of a business.
The following journal entries are as follows-
A). Accounts Receivable Dr. $9,670
To Fees Earned Cr. $9,670
(Accrued fees earned)
B). Supplies Expenses Dr. $2270
To supplies Cr. $2270
(Supplies used $3,180- $910)
C). Wages expenses Dr. $1,220
To wages payable Cr. $1,220
(Accrued wages)
D). Unearned rent Dr. $3,160
To Rent revenue Cr. $3,160
(Rent earned 9,480/3 months)
E). Depreciation expenses Dr. $1,610
Accumulated Depreciation - Equipment $1,610
(Depreciation expenses)
Above mentioned are the journal entries to be made for Dependable Realty.
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What is the marketing term for the value of a brand
Answer:
Brand equity
Explanation:
Brand equity refers to the value a company gains from its name
recognition when compared to a generic equivalent. Brand equity
has three basic components: consumer perception, negative or
positive effects, and the resulting value.
if i am right mark as brainliest
See Chapter 19, sections 19.9 and Cases. The project will be a continuation of how to improve the process you chose in Competency 1. Apply project management tools and a project management outline type of your choice to structure and plan the project by defining, planning, and controlling. Create a 10- to 12-slide PowerPoint presentation (supported by Excel and Word as needed), with detailed speaker notes, that includes the following: • Project description • Project Management Charts (Critical Path, Gantt Chart, etc.) • Meeting cadence/rhythm and timing • Metrics to measure the project's success • Financial and budgetary considerations • Description of the project reporting structure
I DON'T KNOW THE ANSWER I'm sorry
performance apraisals of employees
Performance apraisals of employees are used to rate the performance of workers in an organization.
What is performance appraisal?It should be noted that a performance appraisal simply means a regular review of the job performance of an employee.
Companies use performance appraisal in order to determine which employees have contributed the most to the growth of the company.
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how the age of citizens affect patronage of digital platforms
The most covert type of prejudice is ageism. Ageism has gotten less attention than other forms of prejudice on digital platforms, such as those based on race, gender, and socioeconomic status. To raise awareness of the various ways ageism operates, this essay examines a few tools that are regularly included on digital platforms from an old-age perspective. We'll start by looking at how homophilic innovation teams overlook older folks. Second, we will demonstrate how ageism is frequently made worse by strategies that are frequently applied on digital platforms. Thirdly, we will demonstrate how corporate ideals are at odds with the usability problems that mostly impact older persons and those with poor levels of (digital) proficiency.
There have been numerous initiatives to increase public awareness of how stereotypes and prejudices support discrimination, and there are a number of laws and regulations that forbid it, such as the Equal Credit Opportunity Acts, the Fair Housing Act, and anti-discrimination laws (Housing and Civil Enforcement Section|CRT|Department of Justice, n.d.). However, discrimination is being reinforced by intelligent systems (Eubanks, 2018). Different techniques are used by discriminatory biases in digital systems. This article focuses on three categories of ageist mechanisms that are frequently used in the development and use of digital platforms.
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How do you think something like the WTO can impact State Sovereignty, if at all?
To what degree a state's Legal Sovereignty is affected by its participation in the World Trade Organization depends on whether we adopt a "revocability-based conception" or a "veto-based conception" of state sovereignty. This is further explained below.
What is Sovereignty?Generally, Sovereignty is simply defined as the power of a state to exert control over itself or over another nation.
In conclusion, Whether or not WTO participation impacts Legal Sovereignty of a state is contingent on whether we use a "revocability-based conception" or a "veto-based conception" of state sovereignty.
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why is the website so terrible
Explain the competitive structure of the community
The competitive structure of the community simply entails how individuals compete with each other for survival.
What is a community structure?It should be noted that a community structure is the internal structure of a neighborhood or an area.
In this case, the competitive structure of the community simply entails how individuals compete with each other for survival. They also compete for resources.
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Why is it good to have home equity
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Assuming no brokerage fees, calculate the calculate the amount of cash needed to needed to retire Baldwin's 11.3s2028 bond early?
Assuming no brokerage fees, calculate the calculate the amount of cash needed to needed to retire Baldwin will be $10661557.
How to calculate the cash?From the information given, the retirement amount will be calculated thus:
= Face value × Trade price %
= $11666000 × 91.39%
= $$10661557
In conclusion, the amount will be $10661557.
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A corporation makes an investment of $20,000 that will provide the following cash flows after the corresponding amounts of time: Year 1 - $10,000 Year 2 - $10,000 Year 3 - $2,000 a. Should the company make this investment? b. What is the net present value at a 7 percent discount rate? Round your answer to two decimal points.
A) The company should not invest in the provided project due to the negative NPV of the project.
B) The NPV of the project comes out to be (286).
What is NPV?NPV is an abbreviated form of Net present value and computed by deducting the cash outflows from cash inflows at the present value.
Given values:
Cash flow of year 1: $10,000
Cash flow of year 2: $10,000
Cash flow of year 3: $2,000
Cash outflow (cost of investment) =$20,000
Step-1 Computation of PV of cash inflows of every year:
PV of year 1 = Cash inflow of year 1 / (1+ interest rate)^ 1
= $10,000 / (1+0.07) ^ 1
= $10,000 X 0.934579
= $9,346
PV of year 2 = Cash inflow of year 1 / (1+ interest rate)^ 2
= $10,000 / (1+0.07) ^ 2
= $10,000 X 0.873438
= $8,735
PV of year 3= Cash inflow of year 1 / (1+ interest rate)^ 3
= $2,000 / (1+0.07) ^ 2
= $2,000 X 0.816297
=$1,633
Step-2 Computation of total amount of PV of cash inflows:
[tex]\rm\ PV \rm\ of \rm\ cash \rm\ inflows = \rm\ PV \rm\ of \rm\ year \rm\ 1 + \rm\ PV \rm\ of \rm\ year \rm\ 2 + \rm\ PV \rm\ of \rm\ year \rm\ 3\\\rm\ PV \rm\ of \rm\ cash \rm\ inflows =\$9,346 + \$8,735 + \$1,633\\\rm\ PV \rm\ of \rm\ cash \rm\ inflows =\$19,714[/tex]
Step-3 Computation of NPV:
[tex]\rm\ NPV=\rm\ PV \rm\ of \rm\ cash \rm\ inflows- \rm\ Cost \rm\ of \rm\ investment\\\rm\ NPV=\$19,714-\$20,000\\\rm\ NPV=\$ (286)[/tex]
Therefore, the NPV comes out to be a negative amount of 286, and hence, the company should not accept the project.
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Competitive markets generally give consumers and producers correct incentives when
A competitive market incentivizes its consumers and producers when the property rights are well-defined and enforced.
What is a competitive market?A competitive market is referred to as a condition wherein there are a large number of buyers and sellers in a market dealing in the buy and sell of a distinctive product.
Hence, option B holds true regarding a competitive market. The complete question has been attached as an image for better reference.
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Essman might overlook strategic risks, the business plan at hand can be a good plan and the Product mix may be one of the best. However, things do change, and the plans and the product mix stated in the plan may become outdated making the strategy of the company less efficient to reach its goals. Technological risks may also render the product mix out of date. With the dynamism of technology other efficient products may come to the market making rendering the product mix obsolete.
Would risk retention be a good strategy for this company? Why or why not?
Risk retention is good for the company as the good has the better strategies planned about the product mix and if the things changed in the future the company is able to conquer the loss.
What is product mix?Product mix is the total number of products sell by the particular company, the products can be further divided into the categories and division. Many big companies have the different line products like the cosmetics, glasses, home materials and others.
Thus, Risk retention is good for the company as the good has the better strategies
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Deciding on a specific course of study in college typically involves choosing blank
Answer: i think a career path
Explanation:
Answer: Academic Major
Explanation:
Got it right
Virtual groups resolve issues related to differences in time, distance, technology, member cultures, and organizational environments during the _____ stage of virtual team formation.
The issues on differences in time, distance, technology, member cultures, and organizational environments are address during the storming stage of virtual team formation.
What is the virtual team formation?In a task processes category, the formation consists of five stages which all the virtual teams typically follows which includes forming, storming, norming, performing, and adjourning.
In conclusion, the issues on differences in time, distance, technology, member cultures, and organizational environments are address during the storming stage of virtual team formation.
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Capital structure of a firm which of the following statements is true of equity financing less risky than deft financing.
Requires forms to agree to burdensome covenants
Less flexible then debt financing
If a corporation doesn't want to give up any ownership of the business, debt financing would be preferred to equity financing. If a business has confidence in its finances, it would not wish to pass on the earnings to shareholders by giving someone else shares.
Is Debt Financing or Equity Financing Riskier?
It varies. If you are not making money, debt financing may be riskier because your lenders will put more pressure on you to make payments. Equity financing might be problematic, though, if your investors anticipate that you will make a healthy profit, which they frequently do. If they are not satisfied, they may try to bargain for lower equity prices or completely divest.
Is Debt Cheaper Than Equity?
Debt may be less expensive than equity depending on your company and how well it performs, but the contrary is also true. Your equity finance essentially comes at no cost to you if your business fails and closes. You must still repay the loan plus interest even if you use debt finance to obtain a small business loan but make no money. In this case, debt financing is more expensive. However, the amount you pay shareholders may be far higher than it would be if you had retained ownership and only made a loan if your company sold for millions of dollars. Every situation is unique.
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Now consider the case of Purple Panda Industries. Many of Purple Panda Industries’s customers have expanded to India. Consequently, Purple Panda Industries has decided to expand its operations to India to better serve its customers. Purple Panda Industries has decided to go global in order to:
a. Diversify
b. Retain customers
c. Protect processes and products
The correct option is A. In the case of Purple Panda expanding its operations to India that's led to Diversification.
What is the meaning of Diversification?
A growth strategy known as diversification is expanding your business into a new market or industry while also developing a new product specifically for that market.
Thus, the expansion of Purple Panda operations in Indian markets led to the Diversification of its business because it is expanding that business into a new market or industry while also developing a new product specifically for that market.
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Why is it important to know about your digital footprint?
Answer:
A digital footprint is a visual record on where you went on the internet!Explanation:
Helps you choose and control what you leave online for others to find.
Hopefully this helps you <3
-Matthew
1. What is a functional dependency? Give an example not used
in the text.
A functional dependency (FD) is a relationship between two attributes, typically between the primary key and other non-key attributes within a table.
What is the functional dependency?A constraint between two sets of attributes in a relation from a database is known as a functional dependency. It is a restriction placed on a relationship's two attributes.
Example:
If for every valid instance of X, the value of X uniquely determines the value of Y, then the Y attribute is functionally dependent on attribute X.
Therefore, a functional dependency is just a constant within the table.
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West Co. recorded the following inventory information during the month of February:
Units Unit cost Total cost Units on hand
Balance on 2/1 800 $2 $1,600 800
Purchased on 2/8 1,000 3 3,000 1,800
Sold on 2/14 1,500 300
Purchased on 2/17 2,000 1 2,000 2,300
Sold on 2/23 1,600 700
Purchased on 2/28 800 4 3,200 1,500
West uses the FIFO method to cost inventory. What amount should West report as cost of goods sold at the end of February under each of the following methods of recording inventory?
Perpetual Periodic
A.
$3,900 $3,900
B.
$3,900 $5,900
C.
$5,900 $3,900
D.
$5,900 $5,900
The correct option is C. The valuation of the cost of goods sold which is recorded in its book as $5,900 and stock available for sale is $3,900 under the FIFO method.
Why is the FIFO method used for Inventory Valuation?FIFO will enable you to claim a higher average cost-per-piece on newer inventory, which can help you save money on taxes if your inventory costs are declining over time. Because it assumes that older products are no longer in use, FIFO does not necessitate as much documentation as LIFO.
Calculation Cost of Goods Sold (COGS) under FIFO Method:
COGS = 800 x 2 + 700 x 3 + 300 x 3 + 1300 x 1 =
COGS = $5,900
The calculation for Stock available for Sale:
Stock available for Sale = 700 x 1 + 800 x 4
Stock available for Sale = $3,900
Thus, the Cost of Goods Sold is $5,900, and the stock available for sale is $3,900 under the FIFO method.
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Real GDP takes into account the effect of any price increases (inflation) and adjust for it. Nominal GDP doesn't adjust for inflation (price increases). True or false
This statement on the difference between Real GDP and Nominal GDP is True.
How is nominal GDP different from Real GDP?Nominal GDP refers to the final value of goods and services in a country and it is calculated using current prices in the market.
Real GDP on the other hand, takes Nominal GDP and adjusts its for inflation to see the effects of price changes on production.
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