Capital goods are durable goods that, when used in the production process, produce other goods. This is a statement: Response option group True False
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Capital goods are durable goods that, when used in the production process, produce other goods. This is a statement:
Response option group
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False
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- Firms do not add to their stock of capital when Tobin's q ratio is 0 . 9 . If q is less than 1 , then the stock market values installed capital at more than its replacement cost. True or FalseIf the net future worth is positive, indicating a surplus, we should accept the investment. True or false?The president of a small business is provided with the following options to improve his company by a consulting. Based on the data provided, which option should he choose? Cost (thousands of dollars) Benefit(thousands of dollars) Option A 10 50 Option B 50 100 Option C 120 150 Option D 5 15 Option E 125 200 a) option A b) option B c) option C d) option D e) option E
- Management of AG Travel and Tour has identified two groups of individuals thatwould be interested in the vacation package consisting of room and board and/orentertainment. The maximum amount that group 1 is willing to pay for room andboard is GHC 2500 and for entertainment is GHC 500. For group 2, the maximumamount they are willing to pay for room and board is GHC 1800 and forentertainment is GHC 750. Although AG Travel and Tour is not able to identifymembers of either group, it does know that each group values the components ofthe package differently. Assuming there are an equal number of members in eachgroup and that the total membership in each group is a single individual. If themarginal cost of providing the service (room and board and/or entertainment) toeach group is GHC 1000. How much will the profit for AG Travel and Tour be?Management of AG Travel and Tour has identified two groups of individuals thatwould be interested in the vacation package consisting of room and board and/orentertainment. The maximum amount that group 1 is willing to pay for room andboard is GHC 2500 and for entertainment is GHC 500. For group 2, the maximumamount they are willing to pay for room and board is GHC 1800 and forentertainment is GHC 750. Although AG Travel and Tour is not able to identifymembers of either group, it does know that each group values the components ofthe package differently. Assuming there are an equal number of members in eachgroup and that the total membership in each group is a single individual. If themarginal cost of providing the service (room and board and/or entertainment) toeach group is GHC 1000. Since AG Travel and Tour is not able to identify members of each group,what price should it charge for each product?Management of AG Travel and Tour has identified two groups of individuals thatwould be interested in the vacation package consisting of room and board and/orentertainment. The maximum amount that group 1 is willing to pay for room andboard is GHC 2500 and for entertainment is GHC 500. For group 2, the maximumamount they are willing to pay for room and board is GHC 1800 and forentertainment is GHC 750. Although AG Travel and Tour is not able to identifymembers of either group, it does know that each group values the components ofthe package differently. Assuming there are an equal number of members in eachgroup and that the total membership in each group is a single individual. If themarginal cost of providing the service (room and board and/or entertainment) toeach group is GHC 1000. If AG Travel and Tour wants to charge a package price, what is the highestprice it can charge?
- first part options: 300,100,400,200 second part options: negative, at its maximum, equal to 0, at its minimum, positiveQuestion Management of AG Travel and Tour has identified two groups of individuals thatwould be interested in the vacation package consisting of room and board and/orentertainment. The maximum amount that group 1 is willing to pay for room andboard is GHC 2500 and for entertainment is GHC 500. For group 2, the maximumamount they are willing to pay for room and board is GHC 1800 and forentertainment is GHC 750. Although AG Travel and Tour is not able to identifymembers of either group, it does know that each group values the components ofthe package differently. Assuming there are an equal number of members in eachgroup and that the total membership in each group is a single individual. If themarginal cost of providing the service (room and board and/or entertainment) toeach group is GHC 1000. i. How much will the hotel charge members of each group for the vacationpackage if it could identify the members in each group?ii. How much will the profit for AG Travel and Tour be? iii. Since AG…The owner of a furniture factory wishes to install a new production plant, for which he has three location alternatives that are detailed below: Alternative 1: A piece of land located in San Lucas, with a value of Q.1,100,000.00. The construction will have a value of Q.1,055,000.00. The necessary machinery is as follows: Q. 2 disc cutters at Q.50,000.00 each; 1 Router to Q. 40,000.00; 1 Top to Q. 35,000.00; 1 automatic multiple saw at Q.30,000.00. It will also have an expense of Q.30,000.00 for a topographic study, Q.15,000.00 for renting a bulldozer; payroll payment for Q.250,000.00 per month; electric power expense for Q.650.00 per month; drinking water for Q.675.00/month; telephone for Q.800.00/month; tool and equipment Q.50,000.00. Annual sales will be Q.12,450,000.00. Alternative 2: A building and land valued at Q.1,900,000.00, located in zone 7. It has used machinery at a cost of Q.150,600.00; tools and equipment for Q.20,700.00. Electricity payment for Q.695.00/month;…
- Sunshine Smoothies Company (SSC) manufactures and distributes smoothies. It is considering the "weight loss" smoothies project. The project would require a $4 million investment outlay today The after-tax cash flows would depend on consumers’ demand. There is a 30% chance that demand will be good, and the project will produce after-tax cash flows of $2 million at the end of each year for the next 3 years. There is a 70% chance that demand will be poor, and the project will produce after-tax cash flows of $1 million at the end of each year for the next 3 years. The project is riskier than the firm's other projects, so it has a WACC of 12%. - The firm will know whether the project is success or not after receiving first year's cash flows from normal operating.. - After receiving the first year's cash flows (no matter what receive $1M or $2M in the first year), the firm will have the option to abandon the project. - If the firm decides to abandon the project, the company will no longer…P(A) = 0.2 P(B)= 0.3 Find P(A and B) when events are mutually exclusive.True/False: Opportunity cost is the value of the best alternative that must be forgone in order to undertake any activity or economic exchange.