Answer:
The answer is a. 14.33.
Explanation:
We apply the net present value (NPV) methodology to approach the two options.
+ The lifetime subscription's npv = $(850)
+ The annual subscription's npv = - 85 - [ 85/6% * [ 1 - 1.06^(-n) ], with n is the number of years the subscriber still lives.
To make a lifetime subscription a better buy, the NPV of this option should be higher than the NPV of annual subscription or:
85 + [ 85/6% * [ 1 - 1.06^(-n) ] > 850 <=> 1 - 1.06^(-n) > 0.54 <=> 1.06^(-n) < 0.46 <=> -n < -13.33 <=> n > 13.33.
So, the subscriber should live more than 14.33 years ( 13.33 + 1 years for another next year subscription) to make the lifetime subscription a better choice.
So, a is the correct choice.
Answer:
d. multiplying units to be produced by direct materials per unit.
Explanation:
To determine the total direct material, key parameters required are the direct material cost per unit and the number of units to be produced. The product of these two parameters gives the direct material cost required for production.
For example, if there are 10 units of an item to be produced and the direct material cost per unit is $4, the direct material cost needed for production is $40 derived from the product of the number of units and the direct material cost per unit.
Therefore, the right option is d. multiplying units to be produced by direct materials per unit.
Answer:
Prices go down, yield go up
Explanation:
As we know that there is an opposite relationship between the price of the bond and the yield that means if the creditworthiness comes in a doubt so it reduced the price of the bond and at the same time it increased the yield
So as per the given situation as the investor doubt the borrower creditworthiness so the price would fall and yield would go up
hence, the same is to be considered
Answer: Option A
Explanation: In simple words, concurrent controls refers to the regulation of activities by an organisation to make sure that those activities are performed as per the standards set. Usually the activities regulated under this type of control are related to the transformation process.
Such control is made to improve an existing performance and not in relation to some new set of activities that are to be performed. Hence from the above we can conclude that the given case is an example of concurrent control.
Answer:
The correct anwer is E) A new CEO is an example of a strategic inflection point.
Explanation:
The statement that "A new CEO is an example of a strategic inflection point" is false since to determine a strategic inflection point we rely on other factors that affect companies such as the power of competitors, the power of customers, the power of potential competitors, the power of suppliers and the power of substitutes.
For example, if my product or service is exceeded 10 times more by the competition in quality or price; we are talking about a strategic inflection point.
