Answer:
B. $0
Explanation:
he transaction between Lin and Zee appears to be a conditional sale. The reason being that zee hardware has the right to return the machine if unable to resell it. According to their agreement, should Zee hardware return the machine, its obligation to Lin will be zero.
As per Lin's assessment, and based on their previous transactions, the probability of Zee returning the machine is very high. Lin is sure that Zee hardware will not sell the machine. For this reason, Lin should not record the transactions as a sale.
Answer: $125,800
Explanation:
Telly would receive the full amount from the Blue Mutual Fund because he is transferring from one IRA to another.
Taxpayers are allowed to transfer or perform a distribution rollover once a year and this is what he is taking advantage of. No amount will be withheld as well should this be the case.
Answer:
increasing then decreasing
Explanation:
production level total cost average total cost
4,000 $8,000 $2.00
4,200 $8,200 $1.95
4,400 $8,800 $2.00
Returns to scale measure the change in productivity, or how much input is needed to produce a unit of output.
- increasing returns to scale: output increases in a greater proportion than inputs
- constant returns to scale: output increases in the same proportion as inputs
- decreasing returns to scale: output increases in a lower proportion than inputs
Since first the average total cost decreased, total output increased in a greater proportion than inputs ⇒ increasing returns of scale. But then the situation reversed and total output increased in a lower proportion than inputs ⇒ decreasing returns of scale.
Answer:
The present value of terminal value is $ 863,689.48
Explanation:
Terminal value=Cash flows at third year*(1+g)/WACC-g
cash flows at the third year is $64,000
g is the growth rate of net cash flows which is 2% in perpetuity
WACC is 8%
Terminal value=$64,000*(1+2%)/(8%-2%)
=$64000*1.02/0.06
=$ 1,088,000.00
The present value of terminal=terminal value*discount factor in year 3
discount factor in year=1/(1+8%)^3=0.793832241
Present value of terminal cash flow=1,088,000.00 *0.79383224
=$ 863,689.48
Answer:
C. <u>at least several</u>
Explanation:
Competitive advantage refers to a favorable situation or position a business enjoys over it's competitors owing to it's specialization or strength in performing a specific operation.
For example, in case of telecommunication, one company's competitive advantage could be superior network coverage with lower call drops than it's competitors.
In order to survive and grow, a business should try and gain competitive advantages in at least several fields and yet at the same time retain and maintain those competitive advantages over a period.
