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2 years ago

Identify how planned investment will change in each scenario. Please choose from the given below options.

Business

1 answer:

Ede4ka [16]2 years ago

8 0

Answer:

1. Airwings, a commercial airline manufacturer, becomes optimistic about economic conditions after seeing reports of strong growth in consumer spending. Due to Airwings, planned investment will increase.

2. The Federal Reserve announces an end to accommodative monetary policy, and is now implementing policy tools that will increase the real interest rate. Due to the Fed, planned investment will decrease.

3. In an effort to reduce constant budget deficits, Congress announces plans to increase the corporate income tax rate. Due to the Congress, planned investment will decrease.

Explanation:

1) Due to Airwings, planned investment will increase.

Since the business has a promising future, it will start capacity expansion to cater to consumer demand.

2) Due to the Fed, planned investment will decrease.

A higher real interest rate suggests that borrowing cost is higher for the firms and so that they will lessen the investment in response to that.

3) Due to the Congress, planned investment will decrease.

A lower tax implies that higher profits and firms can pass these benefits to consumers with lower prices, to employees with higher wages and the government with a tax on profit. However, if the rate of the tax itself has been increased then in that case corporate will see higher tax as a dampener in sentiments and they might curtail investment plans.

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Vladimir [108]

I would ask "how much is the initial investment" and "how long is the payback period of the project" before I decide which one to invest in. The IRR of both companies have already shown the return rate of the project, therefore knowing the period and the initial amount would be the best option<span>. This option related to our fund sufficiency and cash flow.</span>

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2 years ago

A project is expected to create operating cash flows of $22,500 a year for three years. The initial cost of the fixed assets is

Llana [10]

Answer:

D. $5,208.11

Explanation:

Projected cash flow for each year for 3 years = $22,500

Initial cost = $50,000

Additional working capital required = $3,000

Year Cash flow PVIF @ 10% Discounted Value Total

0 - $50,000 $1 - $50,000 -$50,000

0 - $3,000 $1 - $3,000 -$3,000

1 $22,500 0.909 $20,452.5 $20,452.5

2 $22,500 0.826 $18,525 $18,525

3 $22,500 0.751 $16,897.5 $16,897.5

3 $3,000 0.751 $2,253 $2,253

Total $5,128.00

The nearest value is $5,208 and the difference is due to rounding off.

Correct option is

D. $5,208.11

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2 years ago

On April 11 of the current year, Zack Corporation had a market price of $48 per share of common stock. Its par value was $10 per

NikAS [45]

Answer:

The dividend yield for Zack Corporation 8%,the first option

Explanation:

The dividend yield is a measure of business performance used by investors which compares the dividend paid by a stock to its market price(price paid by investors to acquire the stock)

dividend per share for Zack Corporation is $3.90

market price per share is $48

dividend yield =$3.90/$48*100=8.13%

The correct option is the first option 8% since the figure above was simply rounded down to whole number

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2 years ago

2. Risks ____ should be given higher priority because if the risk occurs, it would have a greater impact on the schedule than if

ruslelena [56]

Answer:

Risk on the critical path should be given higher priority than activities that are not part of the critical path, or that have a positive slack.

This is because incurring in a riks that is on the critical path can seriously alter the schedule of a project, to the point that the project could be delayed or put off.

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2 years ago

Donna wants to open her own business. She decides that she needs to make a strategy for determining what product she should sell

Tasya [4]

Answer:

Market survey

Explanation:

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