Answer:
The advantage of recording daily guest counts is that the information is more accurate, and it can help help Raktida to better forecast the number of guests during the current year. It's all about the quality of the information and not just the total data available. Total numbers would have been the same, but the use that could be given to them would be limited. The same applies if instead of weekly guests, the information was for monthly guests. Weekly numbers would be more useful than monthly numbers.
Having daily numbers allows Raktida to forecast a much more accurate serving schedule.
Answer:
E) if the firm evaluates these projects and all other projects at the new overall corporate wacc, it will probably become riskier over time.
Explanation:
Before the merger, Audaco would have rejected any project with an IRR of less than 12% (more risky investments) while Careco only required a 10% IRR (less risky projects). But after the merger the combined WACC will be lower than Audaco's, but higher than Careco's. Therefore, the new merged company will start accepting more risky projects and that tendency will continue over time. Eventually, the company's WACC will have to adjust and increase, and the cycle will continue.
Answer:
The correct answer is letter "B": Volt.
Explanation:
General Motors (GM) discontinued the production of the Chevrolet Volt in November 2019 because the vehicle was not meeting sales targets. Since 2016 the unit sales started to decrease reaching around 5,000 units only in 2019 representing almost 60% less than the previous year.
Even if the hybrid vehicle is considered "good" for average drivers, it never reached the expected sales level.
Answer:
Specifically perform the contract
Explanation:
When a contract is made and one of the parties does not perform his own part. During a dispute the court will first ask the erring party to perform their duties in the contract.
In this scenario Terry was to supply 18 th century artifacts to Martha for the play she was directing, and Martha was ready to pay $50,000 for this. Another director needed the same artifacts and was ready to pay $60,000. Terry decided not to sell the artifacts to Martha.
Terry has breached his contract with Martha, and will now be compelled to sell the painting to Martha at $50,000.
Answer:
Project 2 should be accepted as it's net present value (NPV) is higher
Explanation:
Project 1
Year Cash Flows Discounting factor @10% Present Value(in $)
0 (5000) 1 (5000)
1 3000 0.909 2727
2 2000 0.826 1652
3 1000 0.751 <u>751</u>
NPV $130
Year Cash Flows Discounting Factor @10% Present value (in $)
0 (7000) 1 (7000)
1 5000 0.909 4545
2 3000 0.826 2478
3 2000 0.751 1502
NPV $1525
Note: Cash flows in brackets denote cash outflows or negative cash flows.
