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Sphinxa [80]
2 years ago
10

Tom and his managers are discussing the unemployment, inflation, and interest-rate trends that might affect their chain of coffe

e shops over the next 12 months and the projected growth in the areas where the stores are located. The managers are studying the ______ forces in their organization's general environment.
Business
1 answer:
Leokris [45]2 years ago
6 0

Answer:

The correct answer is "The managers are studying the economic forces"

Explanation:

The economic factors are forces that contributes or affect business competitiveness.

Some of the economic factors are: inflation, interest rate, unemployment, fiscal policies, government changes...

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Greg sold an apartment building he owned for 20 years. He paid $100,000 for it, and made $300,000 worth of improvements. His dep
Marat540 [252]

Answer:

Greg’s capital gain on the apartment = $590,000

Explanation:

Purchase Cost = $100,000

Improvements = $300,000

Total Initial cost = Purchase Cost + Improvements

Total Initial cost = $100,000 + $300,000

Total Initial cost = $400,000

Depreciation for 20 Years = Depreciation per annum * 20

= $2,500 * 20

= $50,000

Net Book value after 20 Years = Initial cost - Depreciation for 20 Years

= $400,000 - $50,000

= $350,000

Capital Gain = Net Sale - Net Book Value

When Net Sale = Sale Price - Commission

= $1,000,000 - $ 60,000

= $940,000

Hence, Capital Gain = Net Sale - Net Book Value

Capital Gain = $940,000 - $350,000

Capital Gain = $590,000

7 0
2 years ago
Finance, or financial management, requires the knowledge and precise use of the language of the field. Match the terms relating
Ierofanga [76]

Answer:

1. Time value of money.

2. Future value.

3. Amortized loan.

4. Annual percentage rate.

5. Annuity due.

6. Amortization schedule.

7. Discounting.

8. Opportunity cost of funds.

9. Perpetuity.

10. Ordinary annuity.

11. A

Explanation:

1. <u>Time value of money</u>: concept that maintains that the owner of a cash flow will value it differently, depending on when it occur.

2. <u>Future value</u>: the amount to which an individual cash flow or series of cash payments or receipt will grow over a period of time when earning interest at a given rate of interest.

3. <u>Amortized loan</u>: a type of security that is frequently used in mortgages and requires that the loan payment contain both interest and loan principal.

4. <u>Annual percentage rate</u>: an interest rate that reflects the return required by a lender and paid by a borrower, expressed as a percentage of the principal borrowed.

5. <u>Annuity due</u>: A series of equal cash flows that occur at the end of each of the equally rate spaced intervals (such as daily, monthly, quarterly, and so on)

6. <u>Amortization schedule</u>: a table that reports the results of the disaggregation of each payment on an amortized loan, such as a mortgage, into its interest and loan repayment components.

7. <u>Discounting</u>: a process that involves calculating the current value of a future cash flow or series of cash flows based on a certain interest rate.

8. <u>Opportunity cost of funds</u>: a rate that represents the return on an investor's best available alternative investment of equal risk.

9. <u>Perpetuity</u>: a series of equal (constant) cash flows (receipts or payments) that are schedule expected to continue forever.

10. <u>Ordinary annuity</u>: a series of equal cash flows that occur at the beginning of each of the equally spaced intervals (such as daily, monthly, quarterly, and so on).

11. PMT x (1-(1/ (1 + r)/r) x (1 +r): an equation that can be used to solve for the present value of an annuity due. It is known as Present Value of an Annuity.

6 0
2 years ago
You are an industry analyst for the telecom sector. You are analyzing financial reports from two companies: tt &amp; t Inc. and
Novay_Z [31]
B is carret because I try and solve this
3 0
2 years ago
Harvey Automobiles uses a standard part in the manufacture of several of its trucks. The cost of producing 60,000 parts is $160,
Bas_tet [7]

Answer:

$55,000

Explanation:

The computation of the change in operating income is shown below:

= Buying cost - making cost

where,

Buying cost = Cost of producing parts × outside supplier per unit

                    = 60,000 parts × $3

                    = $180,000

And, the making cost would be

= Variable cost + fixed cost × given percentage

= $110,000 + $50,000 × 30%

= $110,000 + $15,000

= $125,000

So, the operating income would be

= $180,000 - $125,000

= $55,000

3 0
2 years ago
Five independent projects consisting of reinforcing dams, levees, and embankments are available for funding by a certain public
Alex777 [14]

Answer:

the correct answer is option (b).

Explanation:

Equivalent annual benefits and annual cost of each project is provided.

Calculate B-C ratio of project A -

Annual benefits = $1,800,000

Annual costs = $2,000,000

B-C ratio = Annual benefits/Annual costs = $1,800,000/$2,000,000 = 0.90

The B-C ratio of Project A is 0.90.

Calculate B-C ratio of project B -

Annual benefits = $5,600,000

Annual costs = $4,200,000

B-C ratio = Annual benefits/Annual costs = $5,600,000/$4,200,000 = 1.33

The B-C ratio of Project B is 1.33.

Calculate B-C ratio of project C -

Annual benefits = $8,400,000

Annual costs = $6,800,000

B-C ratio = Annual benefits/Annual costs = $8,400,000/$6,800,000 = 1.24

The B-C ratio of Project C is 1.24.

Calculate B-C ratio of project D -

Annual benefits = $2,600,000

Annual costs = $2,800,000

B-C ratio = Annual benefits/Annual costs = $2,600,000/$2,800,000 = 0.93

The B-C ratio of Project D is 0.93.

Calculate B-C ratio of project E -

Annual benefits = $6,600,000

Annual costs = $5,400,000

B-C ratio = Annual benefits/Annual costs = $6,600,000/$5,400,000 = 1.22

The B-C ratio of Project E is 1.22.

It has been stated that the agency is willing to invest money in any project as long as the B-C ratio is at least one.

The B-C ratio of project A and D are less than 1. So, they will not be considered.

Out of remaining three project, B-C ratio is highest in the case of Project B.

So, Project B will be selected.

Hence, the correct answer is option (b).

7 0
2 years ago
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