A company has retained earnings of $94,000 as of December 31, 2014. The Pro-forma income statement projects net income of $22,00

Response: the VRIO framework

Clarification:

VRIO represents value, rarity, imitability, and organization. These four components are utilized to assess if a business possesses a competitive edge over other firms

It is important to highlight that the VRIO framework serves as an internal instrument for organizations.

The depreciable life of an asset is crucial for the financial manager. Generally, a shorter depreciable life is advantageous, as it leads to quicker cash flow circulation. This concept of depreciation allows for the expense of financial or intangible resources to be allocated over their useful lives. It indicates the extent to which an asset's value diminishes over time. For both taxation and accounting, long-term assets can be depreciated, and the duration allocated to these assets significantly influences the cash flow. Hence, shorter depreciable lives are more favorable compared to longer ones due to the expedited influx of cash for finance managers.

Answer:

The real exchange rates calculated are 4.5 and 3

Explanation:

We understand that

Real exchange rate = Nominal exchange rate × (Basket cost in US ÷ Basket cost in Norway)

Utilizing this formula, the calculation proceeds as follows:

For a nominal exchange rate of 3, the real exchange rate is calculated as follows:

= 3 × (60 ÷ 40)

= 4.5

For a nominal exchange rate of 2, the real exchange rate is:

= 2 × (60 ÷ 40)

= 3

Respuesta:

El Proyecto A debe ser aceptado NPV 3,948.77

El Proyecto B debe ser rechazado NPV -7,086.76

Explicación:

Calcular el valor presente de cada flujo de caja con una tasa de descuento del 11.5% utilizando la fórmula para el valor presente de un monto único:

la tasa para cada flujo de caja será del 11.5%

el tiempo corresponderá al año del flujo de caja

y el valor nominal de cada flujo de caja

Proyecto B:

Año 1

 

PV   16,502.24

Año 2

 

PV   18,258.96

Año 3

 

PV   37,152.04

Total flujo de caja descontado: 71,913.24‬

NPV: flujo de caja descontado - inversión

71,913.24 - 79,000 = -7,086.76

El Proyecto B debe ser rechazado NPV -7,086.76

Proyecto A:

Año 1:

 

PV   16,502.24

Año 2:

 

PV   21,154.66

Año 3:

 

PV   41,191.87

Total flujo de caja descontado: 78,848.77

NPV:flujo de caja descontado - inversión

78,848.77 - 74,900 = 3,948.77‬

El Proyecto A debe ser aceptado NPV 3,948.77

Response:

Option A

Clarification:

Complete Query

A university surveys its students, finding that a 10 percent increase in tuition would result in a 12 percent drop in enrollment. If the aim is to boost overall revenue, the university should ________ tuition because the demand for education here is ________.

A) not increase; elastic   B) increase; inelastic   C) not increase; inelastic   D) increase; elastic

Solution -

The demand for college education is elastic, meaning changes in tuition significantly influence demand. Raising tuition leads to a drop in enrollment, indicating that demand is not stable based solely on quality. Hence, the demand will not rise with a tuition increase, showing elasticity in demand.