Answer:
The answer is $59.50.
Explanation:
The calculations based on the scenario are as follows:
Profit on futures price = After futures price - before futures price
$63.50 - $59
= $4.50
Thus, the effective price that the company pays can be calculated using this formula:
Effective price paid = Spot price in July - Gain on futures price
= $64 - $4.50
= $59.50
<span>To gather data on an area's diversity, I would opt for the aforementioned sampling techniques since utilizing either transect or quadrat methods would yield greater variety compared to simply splitting the habitat into four sections and only sampling one of them.</span>
Answer:
Option (B) is the right choice.
Explanation:
Profit before taxes:
= Sales - Operating costs - Depreciation
= $40,000 - $10,000 - (50,000 × 33%)
= $40,000 - $10,000 - $16,500
= $13,500
Profit after taxes:
= Profit before tax - Tax at 40%
= $13,500 - $5,400
= $8,100
Thus,
Year 1 operating cash flow for the 911 Wings project:
= Profit after tax + Depreciation
= $8,100 + $16,500
= $24,600
Answer:
The solution is a. 14.33.
Explanation:
We employ the net present value (NPV) analysis to evaluate the two scenarios.
+ The NPV for the lifetime subscription is $(850)
+ The annual subscription has an NPV calculated as - 85 - [ 85/6% * [ 1 - 1.06^(-n) ], where n represents the years the subscriber is expected to live.
In order for the lifetime subscription to be more advantageous, its NPV must exceed that of the annual subscription, which gives us:
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.
This indicates that the subscriber needs to live beyond 14.33 years (13.33 + 1 additional year for the next subscription) for the lifetime subscription to be the wiser choice.
Thus, option a is correct.
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.
