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jekas [21]
2 years ago
14

Which statement regarding project selection is BEST? a) Organizational reality can be perfectly captured by most decision-making

models. b) Decision models must contain either objective or subjective factors. c) Before selecting any project, the team should identify all the relevant issues that play a role in project selection. d) The most complete model in the world is still only a partial reflection of organization reality.
Business
1 answer:
Anarel [89]2 years ago
4 0

Answer:

Option D The most complete model in the world is still only a partial reflection of organization reality.

Explanation:

The reason is that the paper works are partial reflection of organization until you visit the organization daily, notice the staff behavior, their key norms, their stories, their decision making attitudes, etc. These all things are not reflected in papers. The project must have a subjective and objective factors which aligns with the organization's values, policies, etc.

The statement indicates the excessive research about the project implementation. The post and pre-audit of the plans and procedures which are controllable by the organization. The project must also have space for the changes which a good project appraiser will be looking for.

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The bookbinder company has made $150,000 before taxes during each of the last 15 years, and it expects to make $150,000 a year b
allochka39001 [22]

A company can carryback losses up to 3 years. This means that the company can use its 525,000 2015 loss to obtain a credit for income taxes paid in the previous 3 years, 2012-2014. The calculation is as follows:

2012 Carryback: 150,000 x .35 = 52,500

2013 Carryback: 150,000 x .35= 52,500

2014 Carryback: 150,000 x .35 = 52,500

The check that Book Binder receives will be 52,500 x 3 = 157,500.

Its tax liability in 2015 will be zero, and its loss eligible for carryforward will be 525,000-450,000=75,000, since it has already carried back $450,000 of its loss (2012-2014 income).

Its liabilities in future years will be:

2016: (150,000-75,000) x .35 = 26,250. We have now exhausted all tax credits possible from the 2015 loss.

2017-20: 150,000 x .35 = 52,500

4 0
2 years ago
Bay Company acquires 60, 8%, 5 year, $1,000 Community bonds on January 1, 2014 for $60,000. The journal entry to record this inv
Alenkinab [10]

Answer: Interest revenue for $2400

Explanation:

From the question, we are informed that Bay Company acquires 60, 8%, 5 year, $1,000 Community bonds on January 1, 2014 for $60,000. The journal entry to record this investment includes a debit for Interest revenue for $2400.

This was calculated in the following way:

= $60,000 × 8% × 1/2

= $60,000 × 0.08 × 0.5

= $2400 interest revenue

8 0
2 years ago
Read 2 more answers
Perfect Catering​ Company's ending inventory was $103,700 at historical cost and $111,500 at current replacement cost. Before co
hram777 [196]

Answer:

B

Explanation:

The Lower of Cost or Market Value Applies to the closing inventory and should be value at $103,700 Cost, which is the lower.

7 0
2 years ago
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Explain the relationship that exists between the coupon interest rate and yield to maturity and the par value and market value o
rusak2 [61]

Answer:

D. The market value of the bond approaches its par value as the time to maturity declines. The yield to maturity approaches the coupon interest rate as the time to maturity declines.

Explanation:

One explanation of the relationship that exists between the coupon interest rate and yield to maturity and the par value and market value of a bond, is that <u>the market value of the bond approaches its par value as the time to maturity declines. The yield to maturity approaches the coupon interest rate as the time to maturity declines.</u>

According to the definition of yield to maturity, it takes into consideration the coupon rate (i.e. the interest amount earned per year) for the number of years left to maturity, it is often higher because it treats the amount earned each year as being re-invested.

<u>Therefore the amount of yield to maturity will fall as the time to maturity nears and will approach the coupon rate</u>

Secondly, A bond's par value is the dollar amount it will be worth when it reaches maturity.

Before its maturity date, the bond may sell for more than par value on the secondary market as the yield it pays becomes more attractive to buyers.

<u>Therefore the difference between par value and market value is the yield. hence as maturity nears, yield to maturity falls and market value approaches par value because the bond is what its par upon maturity.</u>

5 0
2 years ago
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Portfolio diversification eliminates: Multiple Choice all investment risk. the portfolio risk premium. market risk. unsystematic
kaheart [24]

Answer:

Unsystematic risk

Explanation:

<em>The portfolio theory posits that the total risk on a collection of assets (i,e a portfolio) can be reduced by spreading the invested fund into different assets that are uncorrelated.</em>

<em>According to this model, the total risk on a portfolio is divided into systematic and unsystematic risks. The theory assumed by diversification, the unsystematic risk associated with a portfolio is eliminated.</em>

Unsystematic risk essentially are those unique individual assets for example. if we invest in company stock, risk associated with factors like bad management , law suit against a company, defect in company;s products are example of unique or systematic risks

7 0
2 years ago
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