if there are rapid diseconomies of scale in a market, that market is likely to include group of answer choices one very large firm. a few large firms. many small firms. many firms of various sizes.
Answers
If there are rapid diseconomies of scale in a market, that market is likely to include many firms of various sizes.
What is rapid diseconomies of scale ?Diseconomies of scale can be decribed as one that do take place in acase whereby a business expands so much that the costs per unit increase.
It should be noted that It do occur when economies of scale no longer function, hnece If there are rapid diseconomies of scale in a market, then in that marlket there is likelyhod of many firms of various sizes.
Therefore, the last option is correct.
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Related Questions
In Pragmatic Promotions, employee Hanie is a very talented Accounts Officer that finds meaning in his work as he is contributing to the goals of his clients businesses and understands the impact he has in the success of his own organisation. However, he is still unhappy at work. What could be lacking, strictly in terms of the 4 Dimensions of Empowerment?
Select one:
a. He is missing his family in another state
b. All of the choices
c. He has to take two long train rides to work
d. He has got no freedom and authority to make decisions at work
Answers
The element that could be lacking, strictly in terms of the 4 Dimensions of Empowerment is Hanie has got no freedom and authority to make decisions at work.
The reason behind Hanie's unhappiness at work is that he has no freedom and authority to make decisions at work. This lack of decision-making authority and independence is a critical issue that can contribute to the frustration of employees, resulting in dissatisfaction and a lack of interest in their jobs. Hanie's job role is of Accounts Officer, and he is a very talented and contributing member of the organization, but despite all of this, he is still unhappy. Hence, it could be concluded that the element lacking in Hanie's work life is the absence of freedom and authority to make decisions, which strictly falls under the 4 Dimensions of Empowerment.
The last definition portrays strengthening all the more extensively as expanded characteristic undertaking inspiration appeared in a bunch of four discernment's mirroring a singular's direction to their work job meaning, capability, self-assurance and effect.
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Firm is producing a specific output with the least-cost combination of resources when the __
Answers
Firm is producing a specific output with the least-cost combination of resources when the marginal rate of technical substitution (MRTS) between any two inputs is equal to the ratio of their prices.
To produce a specific output with the least-cost combination of resources, firms need to optimize their resource allocation. This means they need to allocate their resources in a way that minimizes their costs while achieving their desired output level. The concept of the marginal rate of technical substitution (MRTS) is helpful in understanding this optimization process. The MRTS measures the rate at which one input can be substituted for another while keeping the level of output constant. It represents the slope of the isoquant, which is a curve that shows all possible combinations of inputs that produce the same level of output.
When the firm is producing with the least-cost combination of resources, the MRTS between any two inputs should be equal to the ratio of their prices. This means that the firm should substitute inputs in a way that maintains the same level of output while minimizing costs. If the MRTS between two inputs is not equal to their price ratio, the firm can make adjustments to their resource allocation to achieve a more cost-efficient production process.
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fill in the blank The interest section of your sales message should use ______ to develop selling points you identified in your prewriting phase.
Answers
The interest section of your sales message should use creative language and persuasive techniques to develop the selling points you identified in your prewriting phase.
This is the part of your message where you grab the attention of your potential customer and convince them that your product or service is the solution to their needs or desires. It's important to make sure your message is compelling, engaging, and clearly communicates the benefits of your product or service.
One effective technique for developing selling points is to use storytelling. By telling a story that showcases the value of your product or service, you can make a deeper connection with your audience and help them understand how your offering can make their lives better. Another effective technique is to use social proof, such as customer testimonials or statistics, to demonstrate the benefits of your product or service.
Ultimately, the interest section of your sales message should be crafted with the goal of convincing your audience to take action. By using creative language, persuasive techniques, and focusing on the selling points you identified in your prewriting phase, you can create a message that resonates with your potential customers and motivates them to engage with your brand.
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Sheila felt prepared to work after her one-day job orientation for new employees. When she got to work, however, she was shocked. She was not prepared for the fast pace, sophistication and skill level found in her new department. By noon that day, Sheila felt like she was not cut out for the job. She felt under-skilled and underprepared to meet her department's
challenges.
On her way to the company cafeteria, one of her co-workers, Tammy, caught up with her and they had lunch together. Sheila was glad that Tammy was so friendly to her and she was able to relax a little bit. During lunch Tammy talked about their manager, Mr. Smith. Sheila learned that Mr. Smith was in trouble with his superiors. Next, Tammy told her about James, the computer programmer.
She told Sheila that James spread rumors and was not to be trusted. She talked about Mrs. Tyler, the accountant. She said that Mrs. Tyler was an alcoholic and frequently took sips from a whisky bottle in her desk.
Tammy asked Sheila to join her for coffee after work. She said, "Trust me, Sheila. Once you come to understand how screwed up everyone is around here and get the feel of the place, you'll do fine."
Question: Why would Tammy be so friendly towards Sheila? What might happen if
Sheila gets close to Tammy? Have you ever been in a similar situation?
Answers
Tammy was probably friendly with Sheila because she was outgoing and made her feel comfortable at work. But Sheila should be careful about getting involved in rumors that can turn into negative conflicts.
What are organizational conflicts?These are situations where there are differences in the work environment, which may be personal or professional, such as rumors and disagreements about tasks.
Organizational conflicts arising from rumors, such as the gossip of other employees told by Thammy to Sheila, can be extremely negative, and consequently generate enmity, disintegration of teams and even dismissals.
Therefore, it is essential that there is conflict management in the organization through effective communication, interpersonal relationships based on ethics and respect for all employees.
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Ricardo is looking for a very popular book that seems to be sold out everywhere. He likes to read actual printed books rather than digital books, so rather than driving from book store to book store, Ricardo begins calling shops and asking if they have the book he is looking for in stock in their inventory. What does he mean by ‘in stock’?
natural resources from the land
substances used in the first stage of production
excessive bureaucracy or rules
available for distribution
Answers
The fed has been called "the lender of last resort" because it:________
Answers
The Fed has been called "the lender of last resort" because it serves as a source of emergency funding for financial institutions when no other options are available. This role is crucial in times of financial crises or liquidity shortages, providing stability to the financial system.
As the lender of last resort, the Federal Reserve is responsible for ensuring the smooth functioning of the banking system and preventing systemic disruptions. When banks or other financial institutions face severe liquidity problems and are unable to borrow from other sources, they can turn to the Fed for short-term loans. By providing this liquidity support, the Fed helps prevent bank runs, panics, and potential systemic failures that could have severe economic consequences.
The lender of last resort function is a critical tool for the central bank to maintain financial stability and confidence in the banking system. It acts as a backstop, instilling confidence in market participants that financial institutions will have access to liquidity in times of stress. This role helps prevent contagion and allows the financial system to continue operating, minimizing disruptions to the broader economy.
In conclusion, the Fed's role as the lender of last resort ensures that financial institutions have access to emergency funding when they cannot obtain it elsewhere. By fulfilling this function, the Fed plays a vital role in maintaining the stability and functioning of the financial system during times of crises or liquidity shortages.
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n economy has a fixed price level, no imports, and no income taxes. MPC is 0.8, and real GDP is $200 billion. Businesses increase investment by $10 billion Calculate the new level of real GDP and explain why real GDP increases by more than $10 billion. The new level of real GDP is $billion. Real GDP increases by more than $10 billion because the increase in investment O A. increases exports B. O C. O D. induces an increase in consumption expenditure increases the marginal propensity to consume enables firms to produce more output
Answers
Option (c), Real GDP rises by more than $10 billion as a result of the increase in investment, which also causes a rise in consumption.
What is the impact of increased investment on GDP?Due to the creation and sale of physical capital, an increase in business investment directly improves the current level of gross domestic product (GDP) in the short term. Business investment, one of the GDP's most volatile components, has a history of suffering significant quarterly fluctuations.
What causes a rise in real GDP?The real GDP is adjusted to account for increases in inflation. In the case of positive inflation, this suggests that real GDP will be lower than nominal GDP and vice versa. Without accounting for actual GDP, positive inflation significantly raises nominal GDP.
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What business management system seeks to streamline an organization’s activities to prevent backlogs and inefficiencies?
Answers
Lean Management is a type of business management that aims to simplify an organization's operations in order to avoid backlogs and inefficiencies.
What are the 5 lean management principles?The five lean management principles are as follows: 1.Value: Concentrate on providing value to customers while eliminating waste. 2.Value Stream: Identify and eliminate waste in each step required to deliver value. 3.Flow: Make sure the value stream runs smoothly and continuously, with no interruptions or delays. 4.Pull: Produce only what is required, when it is required, and in the quantity required by the customer. 5.Continuous Improvement: Strive to improve the value stream on a continuous basis by identifying and eliminating waste, improving flow, and increasing efficiency and effectiveness. These principles are used to streamline and improve the efficiency of an organization's activities, resulting in lower costs, higher customer satisfaction, and increased profitability.
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Alpha can produce either 18 oranges or 9 apples an hour, while Beta can produce either 16 oranges or 4 apples an hour. Which of the following statements is true? Alpha should export to Beta, but Beta should not export to Alpha. Since Alpha has an absolute advantage in both goods, no mutual gains from trade are possible. If Alpha specializes in growing oranges and Beta specializes in growing apples, they could both gain by specialization and trade. If Alpha specializes in growing apples and Beta specializes in growing oranges, they could both gain by specialization and trade.
Answers
Answer:
If Alpha specializes in growing apples and Beta specializes in growing oranges, they could both gain by specialization and trade.
Explanation:
A country has comparative advantage in production if it produces at a lower opportunity cost when compared to other countries. A country should specialise in the production of goods for which it has a comparative advantage
Alpha
Opportunity cost in producing oranges = 9/18 = 0.5 apples
Opportunity cost in producing applies = 18/9 = 2 oranges
Beta
Opportunity cost in producing oranges = 4 / 16 = 0.25
Opportunity cost in producing applies = 16/4 = 4 oranges
Alpha has an opportunity cost in the production of apples while beta has a comparative advantage in the production of oranges
Alpha should specialise in the production of apples
Beta should specialise in the production of oranges
Is it true or false that Entrepreneurs often work long hours, but they enjoy great job satisfaction.
Answers
Answer: True
Explanation:
Entrepreneurs have a personal stake in their business which means they have to try as much as possible to ensure that it does not fail. They have to worry about every aspect of the business and this means that they will have to work long hours.
This personal stake in the business however also comes with job satisfaction. The entrepreneur is doing what they want to do and they are not working for anyone else. This brings job satisfaction independent of monetary gain.
Answer:
The difference between skill-based and health-based.
Explanation:
Question 7 of 10
Economists believe that consecutive periods of deflation ultimately lead to
A. depressions
B. economic growth
C. recessions
D. economic fluctuations
Answers
Answer:
A
Explanation:
The economists believe that the consecutive periods of deflation ultimately lead to depressions. Thus option (A) is correct.
What is deflation?Deflation is a situation in which the overall price level in an economy decreases over time. While moderate deflation can be beneficial for consumers, as it increases the purchasing power of their money, consecutive periods of deflation can lead to economic stagnation and even depressions.
When prices are falling, individuals and businesses tend to delay their spending, expecting that prices will continue to decline in the future. As a result, aggregate demand decreases, leading to lower levels of economic output, employment, and income.
The depression occurs after consecutive periods of deflation according to economist. Therefore, option (A) is correct.
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In order for communities to connect workforce & economic development issues they must:
Answers
In order for communities to effectively connect workforce and economic development issues, it is crucial for them to prioritize collaboration and communication between key stakeholders.
This includes local government officials, business leaders, education and training institutions, and community members. One important step is to conduct a thorough analysis of the local economy, including identifying growth industries and potential workforce gaps. This information can then inform targeted workforce development initiatives, such as training programs or apprenticeships, that align with the needs of employers.
It is also important for communities to prioritize supporting local small businesses, as they are often the backbone of the local economy. This can include providing access to resources such as financing and technical assistance. In addition, communities should strive to create a welcoming and inclusive environment for all members of the workforce, including immigrants and other marginalized groups. This can help to attract and retain a diverse and skilled workforce, which can in turn support economic growth.
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What would most likely have a major impact on commercialization?
A) a nation-wide economic recession
B) development of a prototype
C) discovery of a point of difference
D) development of a protocol
Answers
The "development of a prototype" is most likely to have a major impact on commercialization.The correct option is B.
The prototype is the working model of a product which is used to test its operational processes like design, functionality, and performance.
The developing a prototype for businesses or organizations can evaluate the technical feasibility and market potential of their products to make necessary improvements before launching that product to market.
The perfect prototype can help the business or organization to attract investors and customers. A prototype can also provide valuable feedback from users and stakeholders.
Therefore, the correct option is B which is development of a prototype.
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Dresden Pharmaceuticals has decided to go ahead and startclinical trials on a potential new drug. The total R&D costsare estimated to reach around $875,000,000 with clinical trialsmounting to $145,000,000. The current market size is estimated to be around 3,000,000 and is expected to grow at 4 percent every year. The market share Dresden hopes to capture in the first year is 7 percent, and is projected to grow by 25 percent each year for the next 4 years. A monthly prescription is anticipated to generate revenue of $420 while incurring variable costs of $150. A discount rate of 8 percent is assumed.
Dresden Pharmaceuticals
Data
Market Size 3,000,000
Unit (monthly Rx) revenue ($) 420
Unit (monthly Rx) cost ($) 150
Discount Rate ( per cent) 8
Project Costs
R&D ($) 875,000,000
Clinical Trials ($) 145,000,000
Calculate the net present value for Dresden's new drug
Answers
The net present value (NPV) of Dresden's new drug project is $28,083,722.
To calculate the NPV, we need to find the present value of all the cash inflows and outflows associated with the project. The cash inflows are the revenue generated by the drug sales, and the outflows are the R&D and clinical trial costs. We can calculate the cash inflows by multiplying the monthly prescription revenue by the expected number of prescriptions sold each year.
We then subtract the variable costs per prescription to get the net cash inflow per prescription. We can then multiply the net cash inflow per prescription by the number of prescriptions sold each year to get the total annual cash inflow. We then calculate the present value of each year's cash inflow and sum them up. We also need to subtract the present value of the R&D and clinical trial costs. Using an 8% discount rate, the NPV of the project is calculated to be $28,083,722.
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Which form must be given to the buyer if a sales associate is working with them in a fiduciary capacity?
Answers
A salesperson is acting in a fiduciary capacity when dealing with a customer. Regarding disclosure, the broker is required to provide the buyer with the appropriate form outlining their and the licensee's respective roles. the Transition to Transaction Broker Consent Form.
What is the name of the person who has the authority to act on behalf of another?In the language of law, someone who has been given the authority to act on behalf of another person or entity is referred to as an agent. A client may hire an agent to represent them in discussions and other interactions with third parties.
What exactly is an agent?Anything that is capable of sensing and responding to the environment through sensors and actuators is considered an agent.
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explain six Differences between private and public company
Answers
•explain six Differences between private and public company.
Answer:
•In most cases, a private company is owned by the company's founders, management, or a group of private investors. A public company is a company that has sold all or a portion of itself to the public via an initial public offering.
Explanation:
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You are the production manager for the toy manufacturing process at the abc company. lumber company right arrow→ abc toy manufacturing company right arrow→ toy store at the mall an example of an internal supplier is
a. the toy store at the mall.
b. the receiving department at abc.
c. the shipping department at abc.
d. the lumber company.
Answers
Answer:
b. the receiving department at abc.
Explanation:
The given production process involves a process flow from Lumber Company to ABC Toy Manufacturing to Toy Store at the Mall.
The Lumber company and Toy Store are external parties in this process, with Lumber Company being the External Supplier and Toy Store at the Mall being the External Customer.
Internally we have the Receiving Department at ABC, that receives input from the Lumber Company. Processes it and sends to the Shipping Department.
Therefore internally the Receiving Department at ABC is the supplier to the Shipping Department.
Noel was assigned a group project in class. What benefit will Noel get from working with a team?
A Independence
B Increased creativity
D Easy class credit
C Easy decision making
Answers
Answer:
B Increased creativity
Explanation: got test
PLS HELP 100 POINTS PLS HELP ME
Answers
Answer:
If i was shana i would save up her money for collage because first her tution into the school and if she dont like there then she screwed 2nd if she dont save her money then she don get a car an go see er fams
Explanation:
Answer:
If i was Shana i would save up her money for collage because first her tuition into the school and if she don't like there then she screwed 2nd if she don"t save her money then she don get a car an go see her family
Explanation:
Have a good night
Document 3: What happens to competition in a communist system?
Answers
Answer:
Explanation:
In a communist system the central authority dictates the means and quantity of production , and gives strict rules on businesses. Since there is no competition amongst firms , each is given the amount of money and each wo0rker is paid the same with same expectations of each.
Case studies
You are a consultant employed by a major competitor to the SAS Institute. You have been asked to prepare a business report for the competitor, from an Organizational behavior perspective, using theory were necessary to explain your analysis and recommendations.
Please address the following questions:
What capabilities or competencies does SAS Institute need to be able to execute its business model?
Answers
In organizational behavior, capabilities or competencies refer to the skills, knowledge, and resources that an organization possesses to execute its business model. In the given case, SAS Institute needs to have various capabilities or competencies to execute its business model.
The capabilities or competencies required by SAS Institute are technical expertise, market knowledge, customer-centric approach, organizational culture, and innovative products. Technical expertise refers to SAS Institute's ability to develop and offer innovative analytics products to its customers.SAS Institute needs to hire experts in statistics, machine learning, and data engineering to develop data analytics products. Market knowledge refers to SAS Institute's ability to identify customer needs and offer products that meet their requirements.SAS Institute should focus on customer satisfaction by understanding their needs and requirements. A customer-centric approach refers to SAS Institute's ability to maintain a customer-centric approach while providing its services and solutions to its customers.
The company needs to offer customized solutions to customers based on their specific requirements. Organizational culture refers to SAS Institute's organizational culture, which plays an essential role in its success.The company should maintain an open and innovative culture that promotes creativity, knowledge sharing, and learning. SAS Institute needs to focus on diversity, employee engagement, and continuous learning to attract and retain talented employees. Innovative products refer to SAS Institute's ability to focus on developing innovative products and solutions to stay ahead of its competitors.The company should invest in research and development to enhance its analytics solutions and services.
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differentiate between primary and secondary wants
Answers
Answer:
Difference between primary needs and secondary needs: Primary needs: The primary needs are the basic requirements according to biological demands like oxygen for breathing, water for overcoming thirst, food for living and shelter. The secondary needs are the needs that remain even after the primary needs are satisfied
Which tasks are commonly done by employees in the Energy cluster? Check all that apply.
installing equipment
performing inspections
interpreting technical plans
manufacturing gauges
designing systems
following schedules
gathering information
Answers
Answer:
Installing equipment, designing systems, gathering information
The tasks that are commonly done by employees in the energy cluster include installing equipment, designing system, and gathering information.
Energy cluster simply means civil law agreements between the entities which is aimed at bringing efficiency with regards to energy usage.
It should be noted that the tasks that are commonly done by employees in the energy cluster include installing equipment, designing system, and gathering information.
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2. Complete the chart by identifying which go the following modes of transportation is being described: truck,railroad, ship, aircraft, or pipeline. (5 points)
Answers
Answer:
1. Truck
2.Railroad
3. Ship
4. Air flight
5.Pipeline
Explanation:
The whole answer were in the FYI in the program but I made sure that its right because i they matched identicaly
Thank you!
Use the following to answer questions (1) through (6): Suppose a realtor believes the relationship between
the average price of a house (in dollars, denoted as Y) in Grass Valley and the number of bedrooms in the
house (denoted as X) is given by Y = a + bX. Further, when X = 2, Y = 300,000; and when X = 4, Y =
500,000.
There is a positive relationship between X and Y.
A.
B.
True
False
Answers
The statement that 'there is a positive relationship between X and Y' is true as an increase in number of bedrooms as results in an increase in average price.
It is required to determine if there is a positive relationship between the average price of a house (Y) and the number of bedrooms (X) in Grass Valley, given the equation Y = a + bX.
You are provided two data points:
1. When X = 2, Y = 300,000
2. When X = 4, Y = 500,000
Let's examine the relationship between X and Y using these points.
When the number of bedrooms (X) increases from 2 to 4, the average price of the house (Y) increases from 300,000 to 500,000. This indicates that as the number of bedrooms increases, the average price of the house also increases.
Based on this observation, there is a positive relationship between X (number of bedrooms) and Y (average price of a house) in Grass Valley. So, the statement is True.
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A $100,000 loan at 6% could be amortized with monthly payments of $843.86 on a 15-year basis or payments of $599.55 on a 30-year basis. The 30-year loan results in total payments of what percentage of the 15-year total payments
Answers
Answer:
142.1%
Explanation:
the total payments needed to pay off the 30 year loan = 30 years x 12 months x $599.55 = $215,838
the total payments needed to pay off the 15 year loan = 15 years x 12 months x $843.86 = $151,894.80
the relationship between total payments = $215,838 / $151,894.80 = 1.421 = 142.1%
True/False
1. A thank you note sent after a job interview will serve as a reminder to those people you met.
2. When giving the time of your emploment on your resume, be sure to specify only the year of starting and ending of each job.
3. If an interviewer asks you what your weakness are, you should think for a moment before answering.
4. To prevent discrimination, all applicants for a job should be asked the same questions during an interview.
Answers
A thank you note sent after a job interview will serve as a reminder to those people you met is a false statement
2. False
3. False
4. False
What is an interview for a job?A job interview is known to be a kind of conversation tak that is said to occurs between a said and potential employer and that of a job applicant.
Note that During the job interview, the employer is one who has a lot of opportunity to appraise any kind of applicant's qualifications, as well as their appearance and full fitness in regards to the job opening.
Hence, A thank you note sent after a job interview will serve as a reminder to those people you met is a false statement
2. False
3. False
4. False
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1. Identify the three types of duties that CBP assesses and how the duty is calculated under each type of duty.How does one protest a duty/liquidation?
Answers
The three types of duties that CBP assesses and how the duty is calculated under each type of duty are as follows:Ad valorem duties: Ad valorem duties are levied as a percentage of the customs value of the imported product, such as 10% of the value of the imported product.
Specific duties: Specific duties are levied at a specific rate per unit of measure, such as per kilogram or per meter.A combination of ad valorem and specific duties: A combination of ad valorem and specific duties is assessed on imported goods under this category, with the rate being a mix of both. For example, a product with a value of $10,000 could be charged a 5% ad valorem duty, as well as a $1 per kilogram specific duty for a total of $15,000 ($10,000 x 5% + $1 x 5,000 kg).
Protesting a duty/liquidation: To protest a duty/liquidation, one must submit a written protest to CBP within 180 days of the liquidation of the goods. The protest must contain a description of the merchandise, the classification of the merchandise, the amount of the duty that is in dispute, and a legal or factual argument. The protest must be signed by the importer or their legal representative, and it must be filed with the port director where the entry was filed. The CBP will examine the protest and issue a ruling, which can be appealed if necessary.
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. Which of the following is a contract?
A) An insurance policy
B) A repair order
C) Both of the above
D) None of the above
Answers
Of the choices provided above, it can be inferred that only an insurance policy is eligible to called as a contract. Therefore, the option A holds true.
What is the significance of an insurance policy?An insurance policy can be referred to or considered as a policy taken by the insured to protect themselves against the mishappening of the events against which the insurance has been taken. An insurance policy is taken by payment of premium at regular and predetermined intervals.
An insurance policy is a contract between the insured person and the insurance company or the insurer. This is because both the parties enter into an agreement of protection only in the case of mishappening of an event against which the insurance has been made.
Therefore, the option A holds true and states regarding the significance of an insurance policy.
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View Policies Current Attempt in Progress Crane Corporation, an amusement park, is considering a capital investment in a new exhibit. The exhibit would cost $167,270 and have an estimated useful life of 7 years. It can be sold for $69,200 at the end of that time. (Amusement parks need to rotate exhibits to keep people interested.) It is expected to increase net annual cash flows by $26,300. The company's borrowing rate is 8%. Its cost of capital is 10%. Click here to view PV table. Calculate the net present value of this project to the company and determine whether the project is acceptable. (If the net present value is negative, use either a negative sign preceding the number eg -45 or parentheses eg (45). For calculation purposes, use 5 decimal places as displayed in the factor table provided. Round present value answer to O decimal places, e.g. 125.) Net present value $ The project eTextbook and Media Save for Later Attempts: 0 of 5 used Submit Answer Using multiple attempts will impact your score. 10% score reduction after attempt 3
Answers
The net present value of the project to the company is $4,992.79. Since the NPV is positive, the project is acceptable.
To calculate the net present value (NPV) of the project, we need to find the present value of the cash inflows and outflows associated with the project and then subtract the initial investment.
Given:
Initial investment (outflow) = -$167,270
Estimated selling price (inflow) = $69,200
Useful life = 7 years
Annual net cash flow = $26,300
Borrowing rate = 8%
Cost of capital = 10%
First, let's calculate the present value of the cash inflows:
PV of cash inflows = (Annual net cash flow) x (Present value factor)
From the PV table provided, we can find the present value factor for 7 years and a cost of capital of 10%, which is 4.86813. Therefore,
PV of cash inflows = $26,300 x 4.86813 = $127,930.16
Next, let's calculate the present value of the selling price at the end of the useful life:
PV of selling price = (Selling price) x (Present value factor)
PV of selling price = $69,200 x 0.62739 = $43,332.63
Now, we can calculate the net present value:
NPV = PV of cash inflows + PV of selling price - Initial investment
NPV = $127,930.16 + $43,332.63 - $167,270
NPV = $4,992.79
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