Given the table below describing the total and marginal benefit Elvis
gets from fried peanut butter and banana sandwiches.
![\begin{tabular} {|p {3.5cm}|p {2.0cm}|p {2.6cm}|} \multicolumn {3} {|c|} {Elvis' Fried Peanut Butter and Banana Sandwich Benefit}\\[2ex] Fried PBB Sandwiches&Total Benefit (dollars)&Marginal Benefit (dollars)\\[1ex] 1&&42\\ 2&&24\\ 3&75&\\ 4&81&\\ 5&&-3 \end{tabular}](https://tex.z-dn.net/?f=%5Cbegin%7Btabular%7D%0A%7B%7Cp%20%7B3.5cm%7D%7Cp%20%7B2.0cm%7D%7Cp%20%7B2.6cm%7D%7C%7D%0A%5Cmulticolumn%20%7B3%7D%20%7B%7Cc%7C%7D%20%7BElvis%27%20Fried%20Peanut%20Butter%20and%20Banana%20Sandwich%20Benefit%7D%5C%5C%5B2ex%5D%0AFried%20PBB%20Sandwiches%26Total%20Benefit%20%28dollars%29%26Marginal%20Benefit%20%28dollars%29%5C%5C%5B1ex%5D%0A1%26%2642%5C%5C%0A2%26%2624%5C%5C%0A3%2675%26%5C%5C%20%09%0A4%2681%26%5C%5C%20%09%0A5%26%26-3%0A%5Cend%7Btabular%7D)
<span>The marginal benefit of the 4th fried peanut butter and banana sandwich is given by $81 - $75 = $6.</span>
Answer: Users.
Explanation:
There are 7 positions in the Buyer Decision Process which includes the Initiators, the buyers, decision makers, influencers, Users and Gatekeepers.
The Users are the finally people who actually use the product and their opinion matters. They are usually consulted on how to make a product better in the post-evaluation process.
Kate as a sales representative arranged to meet students and got their feedback on textbooks with the aim of using their feedback to make their textbooks better. This would signify that the students play a USER role in the buying centre and their opinion is being used to learn to make a product better. Also, the company sells textbooks and textbooks are usually for students.
Answer:
Expense & revenue summary a/c (credit balance) = $3500
Explanation:
1. Dr Expense & revenue summary 52500
Cr Sales discount 1500
Cr Sales return & allowance 3000
Cr Depreciation expense 25000
Cr Salaries expense 23000
(Close expenses to expense & revenue summary a/c)
2. Dr Sales 56000
Cr Expense & revenue summary 56000
(Close sales to expense & revenue summary a/c)
3. Dr Expense & revenue summary a/c 3500
Cr Retained earning a/c 3500
(To close expense & revenue summary a/c)
4. Dr Retained earning 2000
Cr Expense & revenue summary 2000
(Close dividend to expense & revenue summary a/c)d
Answer:
b. project A; because its NPV is about $4,900 more than the NPV of project B
Explanation:
Net present value is the Net value all cash inflows and outflows in present value term. All the cash flows are discounted using a required rate of return.
Mutually exclusive projects are those projects where only one project is selected for investment after analysis. NPV is the most preferred method in the evaluation of mutually exclusive projects for capital budgeting. That project is accepted which has higher positive NPV.
Net present value of Project A =$13,157.24
Net present value of Project A =$8,256.98
Difference = $13,157.24 - $8,256.98 = $4,900.26
Net Present value working is made in MS Excel File which is attached with this answer, please find it.
Answer:
Option (D) is correct.
Explanation:
Cost of common stock:
= (Expected dividend at the end of Year 1 ÷ Price of stock) + Growth rate.
= (1.45 ÷ 22.50) + 0.065
= 0.0644 + 0.065
= 0.1294 i.e., 12.94%
Conclusion:-
Cost of common stock = 12.94%
Note:-
D1 = Expected dividend at the end of Year 1,
P0 = Current price of common stock, and
gL = Growth level i.e., growth rate in dividend.
