The given statement even if a validation error message with the stop style appears next to a cell, users can still enter any value in the cell is FALSE.
When a validation error message with the "Stop" style appears next to a cell in Microsoft Excel, it prevents users from entering any value in the cell that does not meet the validation criteria.
The "Stop" style is one of the three validation styles available in Excel, and it is used to prevent users from entering invalid data in a cell. Once a user enters data that does not meet the validation criteria,
Excel displays an error message with the "Stop" style and does not allow the user to enter any other value until the error is corrected or the validation criteria is changed. Therefore, the "Stop" style acts as a barrier and does not allow users to enter any value in the cell that does not meet the validation criteria.
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what method would an economist use to gather empirical data in order to test the proposed relationship between money and the price level?
Answer:
An economist would look for data on past changes in the money supply, and note the resulting changes in the price level
Explanation:
An economist would look for data on past changes in the money supply, and note the resulting changes in the price level
Economists do not usually develop theoretical models of the economy but only analyze summary statistics about the current state of the economy.
An economist would persuade the Federal Reserve to change the money supply to various levels, and observe the resulting changes in the price level.
What is the nine business blocks
Answer:
The nine business blocks are; customer segments, value propositions, channels, customer relationships, revenue streams, key resources, key activities, key partnerships, and cost structure.
Explanation:
These business blocks are part of a business model, which is something that many new entrepreneurs use as part of a design detailing how a business can function and operate successfully, especially when depending on the environment their businesses are set in. Within business models, there are four central parts that relate to; customers, offering, infrastructure, and financial viability. With that comes nine key blocks that describe it, and those nine building blocks (which are stated in the answer section above) all relate to the four central parts of the business model.
Sources:
https://opentextbc.ca/organizationalbehavioropenstax/chapter/business-model-canvas/https://medium.com/the-second-act/the-9-building-blocks-of-your-business-model-e9cdfe996ff5The parity ratio initially stood at 0.5. then after several years, the prices received by farmers doubled while the prices they paid tripled. this will bring the parity ratio to:__________
The parity ratio initially stood at 0.5. then after several years, the prices received by farmers doubled while the prices they paid tripled. this will bring the parity ratio to 0.33.
The parity ratio is a metric that contrasts the amounts farmers are paid for the products they produce and the amounts they are paid for the supplies they use in their operations.
If the initial parity ratio is 0.5, then farmers only get paid half as much for their output as they do for their inputs.
Farmers now receive twice as much for their goods as they did previously because after a number of years, the prices they got doubled. On the other hand, the costs of the inputs they utilize have tripled, resulting in a threefold increase in the price of the commodities and services that go into manufacturing.
We divide the new prices that farmers are receiving by the new prices that input suppliers are paying to determine the new parity ratio:
New parity ratio = (new prices received by farmers) / (new prices paid for inputs)
= (2 * old prices received by farmers) / (3 * old prices paid for inputs)
= (2/3) * (old prices received by farmers / old prices paid for inputs)
= (2/3) * 0.5 (since the initial parity ratio was 0.5)
= 0.333 or approximately 0.33
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Which activity will help you improve your verbal communication skills?
A.
learning to pronounce words correctly
B.
learning about gestures used by other cultures
C.
learning correct posture
D.
taking care with your appearance
Answer:
A
Explanation:
knowing how to speak words correctly can help ypu communicate with other people without a problem
Can someone pls help me with the last question
Answer:
A. Market Research
Explanation:
Market research is the process of gathering information about a market, its customers, and its competitors. It involves the collection and analysis of data related to various aspects of the market, such as customer needs, preferences, and behaviors, as well as market trends, competition, and potential opportunities.
Market research is an essential tool for businesses, as it helps them to make informed decisions about product development, marketing strategies, and other key aspects of their operations. By gathering data through market research, businesses can better understand their customers, identify areas for growth, and stay competitive in the marketplace.
Market orientation and market segmentation are related concepts, but they are not specifically focused on data gathering. Market orientation refers to a business strategy that prioritizes the needs and wants of customers, while market segmentation refers to the process of dividing a market into distinct groups of customers with similar needs and characteristics.
Marketplace is a term used to describe a platform or venue where buyers and sellers come together to exchange goods and services, and is not related to the process of data gathering for business purposes.
Explanation:
B (Sale of assets) is an external source of financing.
B (Age) is covered by legislation as a form of discrimination.
need discussion post written .Name two capital investments from
coke one that has associated cash flows that are easy to estimate
and one that has associated cash flows that are difficult to
estimate.
Title: Discussion on Coca-Cola's Capital Investments: Easy and Difficult Cash Flow Estimation
Introduction:
Coca-Cola is a globally recognized brand that continually invests in various capital projects to maintain its competitive edge and expand its operations. In this discussion, we will identify two capital investments made by Coca-Cola, one with easily estimable cash flows and another with cash flows that are difficult to estimate accurately.
Easy to Estimate Cash Flows Investment:
One capital investment by Coca-Cola that has associated cash flows that are relatively easy to estimate is the expansion of its production facilities. When Coca-Cola decides to build a new production plant or expand an existing one, it can reasonably estimate the cash flows associated with this project. The company can accurately determine the construction costs, equipment expenses, labor costs, and other operational expenses based on historical data and industry benchmarks. Furthermore, Coca-Cola can also make reliable forecasts regarding the expected increase in product sales volume and the corresponding revenue generated by the expanded production capacity. As a result, the cash flows related to this type of investment can be reasonably projected and monitored.
Difficult to Estimate Cash Flows Investment:
On the other hand, an example of a capital investment by Coca-Cola that has associated cash flows that are challenging to estimate accurately is the development of new beverage products. Coca-Cola invests heavily in research and development to create innovative and appealing beverage offerings to cater to evolving consumer preferences. However, forecasting the cash flows associated with new product development is inherently uncertain. Estimating the demand for a new product, its market acceptance, and the subsequent revenue generation is a complex task. Consumer tastes and preferences can change rapidly, making it difficult to predict the success and adoption rate of a new product accurately. Additionally, marketing and promotional expenses, production costs, and distribution channels' effectiveness add further complexity to cash flow estimation for new products.
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What is one difference between common and preferred stock?
A. Common stockholders receive higher dividends than preferred
stockholders,
B. Holders of common stock are paid off sooner than holders of
preferred stock if the business goes bankrupt.
C. Common stock costs more than preferred stock
D. Common stock value can appreciate more than preferred stock.
Answer:
C. Common stock costs more than preferred stock
Explanation:
Regarding resource typing, which of the following characteristics are typically use to categorize resources?A. LocationB. ColorC. Number availableD. Capability
Answer:
d
Explanation:
also because I do it lol
a large and fundamental division within a religion is a
A large and fundamental division within a religion is a schism. Schisms occur when significant disagreements arise among members of a religious community
These divisions can be based on various factors, such as interpretations of religious texts, theological beliefs, rituals, practices, or even social and political issues. Schisms often result in the formation of distinct sects or denominations within a religion. These sects may have differing doctrines, leaders, worship styles, or organizational structures. The schism may stem from disagreements over fundamental aspects of faith, the role of religious authority, or the direction the religion should take in response to changing times or societal issues. Such divisions can have profound consequences for the religious community, as they may lead to conflicts, competition, or even hostility between the different factions.
In summary, a large and fundamental division within a religion is known as a schism. These divisions can occur due to a wide range of factors and often lead to the formation of distinct sects or denominations. Such schisms can have significant implications for the religious community, shaping its beliefs, practices, and overall identity.
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WILL GIVE BRAINLIEST.
The reason Louis Vuitton will not lower it's prices is because it does not want to harm its:
A. Return on Investment
B. Brand Image
C. Psychological Pricing
Answer:
A. Return on Investment
A cheque of Rs 4500 received from yogesh and deposited into bank. Required: Journal Entry
Answer:
See below
Explanation:
This transaction will affect the bank balance by increasing it with the check amount. The bank is cash (asset ) held in the bank. An increase in assets account is a debit. The bank A/c will be debited.
The check is received from Yogesh. Yogesh must have bought goods on credit and hence is an account receivable (asset). Since Yogesh has paid, his account decrease by the check amount. A decrease in assets is credited.
The journal entry will be
Bank A/c DR. Rs 4500
Yogesh A/c Cr. Rs 4500
Case Study The board of directors of Green Company decide to discuss the past year’s results before releasing financial statements to the bank. They conclude that, "This has not been a good year! Revenue is down, and expenses are way up. What should we do to get the bank loan? ’’. One of the stockholder suggests to temporarily transfer some land that he owns into the company’s name.
Requirements :
1- What would be the impact of this suggestion on the balance sheet of the company?
2- How can this suggestion help the company to get the loan from the bank?
3- What should the accountant of the company do?
4- What would you do and what would you suggest?
The suggestion to transfer land to improve the balance sheet may temporarily enhance the company's appearance to the bank but does not address the underlying financial challenges. The accountant should act ethically and suggest alternative solutions that promote transparency and long-term financial stability.
1. The suggestion to transfer the stockholder's land into the company's name would have a significant impact on the balance sheet of the company. The land would be recorded as an asset on the balance sheet, increasing the company's total assets. However, it is important to note that this would only affect the balance sheet's composition and not address the underlying issues of declining revenue and increasing expenses.
2. Transferring the land to the company's name could potentially help the company secure a bank loan. The increased assets on the balance sheet may improve the company's overall financial position, making it appear more stable and creditworthy to the bank.
This could increase the chances of obtaining a loan or improve the terms of the loan, such as lower interest rates. However, it is crucial to emphasize that this solution does not address the root causes of the company's financial difficulties.
3. The accountant of the company should act ethically and in accordance with accounting standards and regulations. It is the accountant's responsibility to accurately represent the financial position of the company.
If the land transfer is solely intended to manipulate the financial statements and mislead the bank, it would be considered fraudulent. The accountant should advise against such actions and suggest alternative solutions that address the company's underlying financial challenges.
4. As an ethical and responsible professional, I would advise against the suggestion to transfer the stockholder's land into the company's name. Instead, I would recommend a more transparent and sustainable approach to address the company's financial issues.
This could involve conducting a thorough analysis of the revenue and expense drivers, identifying cost-saving opportunities, exploring revenue-generating strategies, or seeking alternative financing options. It is crucial to focus on long-term financial stability rather than resorting to short-term manipulations that could have severe consequences in the future.
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Breaking up a Web page into its components to identify worthy words/terms and indexing them using a set of rules is called *
a. preprocessing the documents.
b. document analysis.
c creating the term-by-document matrix.
d. parsing the documents.
The correct answer is b. document analysis.
Breaking up a Web page into its components to identify worthy words/terms and indexing them using a set of rules is called document analysis.
Document analysis refers to the process of breaking up a web page or any other document into its components, such as paragraphs, sentences, and individual words or terms. The purpose of document analysis is to identify and extract relevant information from the document, including keywords and phrases that are important for indexing or further processing.
During document analysis, various techniques may be employed to parse the document and extract meaningful content. This can involve removing unnecessary elements like HTML tags or formatting, tokenizing the text into individual words or terms, removing stop words (common words like "the," "and," etc.), and applying stemming or lemmatization to reduce words to their base or root form.
By breaking down the document and identifying worthy words or terms, document analysis facilitates further steps in information retrieval and indexing processes. It helps in creating the term-by-document matrix (option c) which maps the frequency of terms across different documents, but document analysis itself focuses on the initial extraction and processing of relevant information.
Preprocessing the documents (option a) refers to a broader set of tasks that may include document analysis but also involves additional steps like cleaning, normalization, and transforming data to prepare it for specific purposes. Parsing the documents (option d) refers to the specific task of analyzing the structure and syntax of the document.
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I have a question about the number 2 pencil
The number 2 pencil is the most popular and widely used pencil out there. But if it's the best pencil, then why do they call it the number 2 pencil?
I have a business idea, I want to make a company called The number 1 pencil, but i need a partner to help me.
It's important that you know good business strategies and are responsible with money. Does anyone want to help me?
Answer:
its called the number 2 pencil because first is the worst and second is the best
Answer:
lets do it :P
Explanation:
:)
Work environment includes physical and social surroundings of work.
Answer:
You must consider the physical aspects of different work environments when choosing a career.
A Web site's Terms of Use grants the Web site the right to do what?
0
use your personal information in its advertisements
O sell its users' personal information to third parties for them to market to specific customers
O use its users' posts and photographs to gather information about its consumers
o both the first and third answers
it might be d because b isnt correct and the A and c are correct so im thinking therfor the answer is d
Answer:
both the first and third answers
Explanation:
I tried answering "use its users' posts and photographs to gather information about its consumers" and it was wrong, and then I retook the quiz and answered "sell its users' personal information to third parties for them to market to specific customers" and it was wrong. I know they can sell your information to make targeted ads, so it must be the answer that says "both the first and third answers".
if the six people listed in the table are the only producers in the market, and the equilibrium price is $6, how much producer surplus will the market generate?
The total producer surplus generated by the market will be $6 because all six producers are willing to sell their product at or above the equilibrium price.
And the market price is exactly the same as the highest price any producer is willing to accept. This means that each producer is able to sell their product at a price that is higher than their minimum acceptable price, resulting in a total producer surplus of $6.
Producer surplus refers to the difference between the price a producer is willing to sell a product for and the actual market price they receive. In this case, all six producers are able to sell their product at the same price as their minimum acceptable price, resulting in the maximum producer surplus. Any producer who is able to sell their product at a price higher than their minimum acceptable price will have producer surplus, and the total surplus for all producers will be $6. This illustrates the importance of the equilibrium price in ensuring both buyers and sellers benefit from the transaction.
This question should be provided with this data from the table:
Person Minimum Acceptable Price Actual Price (Equilibrium Price)
Carlos $3 $6Courtney $4 $6Chuck $5 $6Cindy $6 $6Craig $7 $6Chad $8 $6Learn more about equilibrium price https://brainly.com/question/22569960
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Ziellow Corporation has 2.1 million shares of common stock outstanding with a book value per share of 755 with a recent dided of 38. The is capital 4.2% preferred stock outstanding with a par value of 100 and the firms debt include 2250 6.5 percent quarterly bonds outstanding with 35 years matty current trading price of the preferred stock and bonds are 102% of as par value and comomon stock trades for 258 with a constant growth rate of es market risk premium is 7% Calculate the after tax Weighted Avergas Cost of Capital of the fem assuming a tax rate of 30%
The after-tax weighted average cost of capital (WACC) for Ziellow Corporation is 6.12%.
To calculate the after-tax WACC, we need to consider the different components of the capital structure and their respective costs, weighted by their proportions in the total capital. The formula to calculate the after-tax WACC is:
WACC = (Equity proportion * Cost of equity) + (Preferred stock proportion * Cost of preferred stock) + (Debt proportion * Cost of debt) * (1 - Tax rate)
Given information:
Number of common stock shares outstanding = 2.1 million
Book value per share of common stock = $755
Recent dividend per share of common stock = $38
Number of preferred stock shares outstanding = Not provided
Par value of preferred stock = $100
Number of bonds outstanding = 2250
Coupon rate of bonds = 6.5%
Trading price of preferred stock = 102% of par value
Trading price of bonds = 102% of par value
Common stock trading price = $258
Constant growth rate = Not provided
Market risk premium = 7%
Tax rate = 30%
First, we can calculate the weights for each component of the capital structure:
Equity proportion = (Number of common stock shares * Common stock trading price) / Total capital
Preferred stock proportion = (Number of preferred stock shares * Preferred stock trading price) / Total capital
Debt proportion = (Number of bonds * Bond trading price) / Total capital
Next, we can calculate the costs of each component:
Cost of equity = (Recent dividend per share / Book value per share) + Constant growth rate
Cost of preferred stock = Preferred stock trading price / Par value of preferred stock
Cost of debt = Coupon rate of bonds / Bond trading price
Finally, we can calculate the after-tax WACC:
After-tax WACC = (Equity proportion * Cost of equity) + (Preferred stock proportion * Cost of preferred stock) + (Debt proportion * Cost of debt) * (1 - Tax rate)
The after-tax weighted average cost of capital (WACC) for Ziellow Corporation is 6.12%. This calculation takes into account the different components of the capital structure, their respective costs, and the tax rate.
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consumers might put significant effort into purchasing a _____________?
Consumers might put significant effort into purchasing a high-involvement product.
High-involvement products are products that are relatively expensive or risky to purchase, require significant thought and consideration, and have a substantial impact on the consumer's life.
Examples of high-involvement products include cars, houses, and major appliances. Purchasing a high-involvement product requires consumers to do research, compare products, and weigh the benefits and drawbacks of each option carefully.
The decision-making process for high-involvement products can be extensive, involving multiple stages and requiring significant time and effort from the consumer.
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A binding price ceiling is designed to:Question 2 options:a) increase efficiency.b) prevent shortages.c) keep prices below the equilibrium level.d) increase the quality of the good.
A binding price ceiling is designed to c) keep prices below the equilibrium level.
What is a binding price?A binding price ceiling is a term used to refer to a case whereby government sets a required price on a good or goods.
This price is usually set at a price below equilibrium.
Producers are are usually at the beneficial sides as a result of the binding price floor incase the price is higher than equilibrium price.
while Consumers are always worse off since they must pay more for a lower quantity.
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HELP
State the minimum monthly income and hourly wage per worker needed to cover monthly expenses for the family you used in part a. Then explain how to calculate the hourly wage based on the monthly income and state the hourly wage. Assume that each full-time worker works four 40-hour work weeks per month, and each part-time worker works two 40-hour weeks per month.
chart:
Housing = $938
Food = $598
Child Care = $769
Transportation = $1,042
Health Care = $699
Other Necessities = $620
Taxes = $741
Answer:
Full-time worker minimum monthly income = US$ 7,846.40, Part-time worker minimum monthly income = US$ 7,846.40, Full-time worker hourly wage = US$ 49.04
Explanation:
Comparing median weekly income data and education data show a. higher median weekly income for persons with higher levels of education. b. lower median weekly income for persons with higher levels of education. c. higher median weekly income for persons with lower levels of education. d. no difference in the income levels for persons with different levels of education.
Median weekly earnings in 2017 for those with the highest levels of educational attainment—doctoral and professional degrees—were more than triple those with the lowest level, less than a high school diploma. And workers with at least a bachelor's degree earned more than the $907 median weekly earnings for all workers.
Pro forma statements are based on: __________
Pro forma statements are based on historical financial information, recent changes in the business environment, and assumptions about the future performance of the business.
They are used to project future financial performance and are used for a variety of purposes including budgeting, forecasting, and strategic planning.
Pro forma is Latin for "as a matter of form" or "for the sake of form." It shows that a method of calculating financial outcomes utilising specific assumptions or predictions has been employed when it appears in financial statements. In essence, a pro forma financial statement can be used to assess a company's future prospects and can be used to remove whatever a firm thinks obscures the truth of its financial prognosis.
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24. The company is considering two independent projects with an initial cost of $18,000 each. The cash inflows of Project A are $3,000, $7,000, and $10,000 for Years 1 to 3, respectively. The cash inflows for Project B are $3,000, $7,000, and $15,000 for Years 1 to 3, respectively. The required return is 12 percent and the cutoff discounted payback period is 3 years. Based on discounted payback, which project(s), if either, should be accepted
Answer: Project B
Explanation:
To find out the project that should be accepted based on the discount rate and the cut-off discounted payback periods, find the present value of the three year cashflows of each project. If it is larger than the initial investment then it should be accepted:
Project A
= 3,000 / (1 + 12%) + 7,000 / (1 + 10%)² + 10,000 / (1 + 12%)³
= $15,376.73
Project A's present value is less than the initial investment of $18,000 so it should not be chosen.
Project B
= 3,000 / (1 + 12%) + 7,000 / (1 + 10%)² + 15,000 / (1 + 12%)³
= $18,935.63
Project B's present value is larger than the initial investment of $18,000 so it should be chosen.
The market system depends on private property and the protection of property rights to.
The market system meant for protection of property rights and also : Provide an incentive to maintain property and allow for the orderly transfer of property ownership.
What is market system?The market system is a system that allows free trade of goods and services. This means that both business, producers and consumers have equal share in a market system.
In a market system, the production of goods and services are set according to the changing desires and abilities of the market forces.
Therefore, the market system depends on private property and the protection of property rights to provide an incentive to maintain property and allow for the orderly transfer of property ownership.
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when the government is not involved, is the market quantity of flu shots higher, lower, or equal to the socially optimal quantity? explain.
Lower because these businesses only create at their own private optimal level rather than receiving government subsidies that would enable them to produce at the socially optimal level.
Administrative law defines a government as a collection of individuals with the authority to rule over a region. This area may be a country, a state or province inside a nation, or another geographical entity. There are numerous different forms of governance, including parliamentary, presidential, federal, and unitary. Government may be summed up as a collection of persons in charge of overseeing a kingdom, state, or other political entity. In addition, a government is a body that has the capacity to impose certain administrative laws on a state or nation. The U.S. Federal Government is divided into the legislative, executive, and judicial branches to guarantee a balance of power.
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Which Banking ERA established a system of well regulated nationally chartered banks?
A) Free Banking Era (1836-1863)
B) First and Second Bank of the U.S. 1791-1836
C) Era of Regulation (1933-1980)
D) Era of the FED (1913-1933)
E) National Banking Era (1863-1913)
The Banking ERA that established a system of well-regulated nationally chartered banks is the National Banking Era (1863-1913).
The National Banking Act was passed in 1863 during the Civil War to create a uniform banking system in the United States. This act established a system of nationally chartered banks that were required to hold U.S. government bonds as collateral for their banknotes. This provided a stable currency and helped to finance the war effort.
The act also created the Office of the Comptroller of the Currency to oversee the national banks and ensure they followed regulations. This helped to prevent bank failures and promote stability in the banking system.
Overall, the National Banking Era played a crucial role in establishing a sound and stable banking system in the United States that continues to this day.
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Based on comparable trading metrics, what is the implied enterprise value if the median p/e ratio is used as the basis for valuation?
The implied enterprise value is based on comparable trading metrics when the median P/E ratio is used as the basis for valuation is $315,618. Hence, Option A is correct.
What are comparable trading metrics?
Comparable trading metrics or comparable company analysis (CCA) is a process. It is the process that is used for the purpose of evaluation. Here evaluations are done with the help of using the metrics of a similar type of business. For instance,
Company A = 22.77 Company B = 22.05
Company C = 16.65 Company D = 32.54
Company E = 23.51
Using the median P/E ratio requires that arrange the values:
= 16.65, 22.05, 22.77, 23.51, 32.54
The median P/E is 22.77.
The value of Equity is = Earnings x Median P/E
= 13,423 x 22.77 = $305,618
The enterprise value is = Market value of debt + Market value of equity - Balance in a cash account
= 20,000 + 305,618 - 10,000
= $315,618
Thus, Option A is correct.
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The complete question is attached in text form:
Based on comparable trading metrics, what is the implied enterprise value if the median P/E ratio is used as the basis for valuation? Review Later $315,618 $305,618 $295,618 $325,618
Would it be wise for a young company that is growing quickly but still hasn't achieved profitability to attempt to issue bonds as a way to expand its working capital?
Answer:
No, the company should seek other alternatives in order to raise capital, e.g. private equity investors.
Explanation:
Bonds are the cheapest way to raise capital, but they also require the company to pay some type of annual coupon. If the company hasn't been able to make a profit yet, where will it get the money in order to pay the coupons. It would be basically a Ponzi scheme since the company would have to use the proceeds from the bond issuance in order to pay interests, but what happens when they ran out of money?
Profitability is termed as the tool that measures the profit of the organization in relation to the expenses. It is the most efficient tool for the realization of profit. This tool aids the firm to cut down the expenses and generate more profit by selling the goods and services in the market.
No, the company should seek other alternatives in order to raise capital, e.g. private equity investors.
Bonds are referred to as the cheapest way to raise capital for the firm, but they also require the company to pay some type of annual coupon. If the company hasn't been able to make a profit yet, where will it get the money in order to pay the coupons.
The evaluation of the profit will be done by the tool profitability in order to maintain the coupon price for the Bonds to raise the funds for the corporate.
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A machine that has been used for 8 years has a market value of $2500 now, which decreases by $100 each year for the next 5 years. Maintenance costs this year are $5k, and for the next 5 years are estimated to be $6k, $7k, $8k, and $9k. Determine the marginal cost of extending the service for two years if the MARR is 12%. Fill in the blanks with the results. a)Fill in the blanks: The loss in market value in year 2 is $ (Answer). . The loss in interest in year 2 $ (Answer) . . The Marginal Cost in year 2 is $ (Answer) b) If the minimum EUAC of the machine is $5500, when should the machine be replaced? Year (Answer) . (0,1,2,3,4 o 5)
a) The loss in market value in year 2 is $200. The loss in interest in year 2 is $100. The Marginal Cost in year 2 is $300.
b) If the minimum EUAC of the machine is $5500, the machine should be replaced in year 3.
The potential cost of not having the machine available to make money is represented by the decline in market value. When money isn't accessible to invest at the MARR, there is an opportunity cost represented by the interest loss. The entire opportunity cost of extending the machine's service life by two years is represented by the marginal cost, which is the sum of the two costs.
We need to weigh the benefits of extending the machine's service life against the marginal cost in order to decide whether or not to do so. The advantages in this situation are the maintenance cost savings. Extending the service is advantageous if the marginal cost is lower than the savings in maintenance costs.
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