A firm’s value depends on the positive net income generated in the past. True False A firm’s value depends on the firm’s ability to generate positive cash flows now and in the future True False When determining the value of a firm, which of the following statements is true? • Inversters are risk neutral. Other things equal they prefer to pay more stocks that are less risky and have uncertain cash flows • Investers love risk. Other things equal they prefer to pay more for stocks that are more risky and have uncertain cash flows.
Develop and document, on behalf of an organisation for which you do or might work, a detailed process whereby it will be possible to investigate, identify, assess, and include the needs of customers in planning processes. Activity 1.docx How can quality, time and cost requirements be balanced? It's all about the expectations of the customer and what they intend on using it for. If they pay a premium price for a product then they expect it to be of premium quality and a quick turnaround. If the product is of low value, then the quality expectation isn't so great.
Holton, on the other hand, argues that the traditional akratic account is flawed. Instead, he argues that an agent displays weakness of will when the agent unreasonably revises a resolution to do some action (Holton, 2009, p. 78).He also states that a person is only weak-willed if they revise their intentions when they were not supposed to revise them. This is what Holton calls
It will tell if the return will be above or below the needed amount to complete a project. The NPV fwill show differences of expected cash flow when comparing 2 projects. The acceptable benchmark includes all cash flows, cash coming in and being spent. A positive side is that the NPV is a statistic not a ratio, it is used to determine if a single project is worth doing as well as choosing between different projects. The downside is that it allows us to see the effect on the money needed to complete the projects as well.
We see that the project has a positive net present value (NPV) at any hurdle rate below 18.031%. This is reassuring, if the firm’s managers believe that the cost of financing is unlikely to be that high. But you also know by now the following supreme rule of economics: Whenever two curves intersect, or a curve intersects the horizontal or vertical axis, twitch in excitement! Something wondrous is bound to be happening at that intersection. The project’s Internal Rate of Return (IRR): In this case, something truly wondrous IS happening at the discount rate at which the NPV line cuts the discount-rate axis: it is the discount rate at which the NPV of the project would be exactly equal to zero.
April 8, 2012 Tax File Memorandum From:., CPA. M.A.F.M Subject: Mr. Jones Taxpayer Engagement On today April 5th, 2012 I met with Mr. Jones regarding our Previous Meeting on April 2nd, 2012 to discuss some questions and possible outcomes about potential future financial investment decisions, and the tax ramifications of these decision and possible outcomes. Facts: Mr. Jones is considering the purchase of a manufacturing company Smithton Widgets which is very profitable. Mr. Jones is a majority shareholder in another C-Corp. Known in this case as Johnson Services which has accumulated significant losses.
Describe at least two negative outcomes of having too little money and credit in the economy. (2-4 sentences. 2.0 points) It would cause scarcity of currency, over balancing demand, producing too much of something meaning major markets could fall to the floor and would cause major losses for the companies producers. Describe at least two negative outcomes of having too much money and credit in the economy. (2-4 sentences.
Keeping in mind the customer buying criteria, how would you increase margins for a low end product? How would you increase margins for a high end product? To increase margins for a low end product you would have to lower the price, for a high end product labor costs would need to be
Opportunity cost is commonly defined as the forgone value of the next best alternative that is not chosen. This value includes the time, satisfaction and benefits; as well as monetary cost that could have been acquired in choosing the alternative. Opportunity cost has been described as expressing the basic relationship between scarcity and choice. Resources are scarce so therefore choices have to be made. How that choice is made depends on an individual carefully analyzing the opportunity cost of each available choice.
For example, if you highly value money, then the more you get paid for taking a certain action, the higher your motivation. But if money isn't as important to you, then the amount you get paid will have little impact on your motivation. Your level of motivation will be directly influenced by how much you want the outcome. The more you value the outcome, the more motivation you have to make the effort and take the action to achieve the outcome. Instrumentality The last factor in Vroom's theory of motivation is instrumentality.