Answer:
A
Explanation:
Generally speaking, a minor may disaffirm a contract at any time during minority or for a reasonable time after the minor comes of age. When a minor disaffirms a contract, all property that he or she has transferred as consideration can be recovered -- even if it was subsequently transferred to a third party. But to say something is disaffirm is to say it never exsited so therefore the store would be able to sue.
In the "Case Nugget", Ziva Jeweler, Inc. v. Car Wash Headquarters, Inc., what was the decision rendered by the Supreme Court of Alabama, as related to the plaintiffs assertion that the carwash employees failed to safeguard jewelry in the trunk of a vehicle that was being cleaned
Answer: There was no evidence that the car wash knew or should have reasonably foreseen that it was taking responsibility for over $850,000 worth of jewelry
Explanation:
In the "Case Nugget", Ziva Jeweler, Inc. v. Car Wash Headquarters, Inc., the decision rendered by the Alabama Supreme Court as related to the plaintiffs assertion that the carwash employees failed to safeguard jewelry in the trunk of a vehicle that was being cleaned was that there was no concrete evidence that the car wash was aware or that the car wash knew that they were in charge of jewelry that were worth over $850,000.
Suppose Cathy and Lewis work in a bakery making pies and cakes. Suppose it takes Cathy 1.5 hours to make a pie and 1 hour to make a cake, and suppose it takes Lewis 2 hours to make a pie and 1.5 hours to make a cake. Which of the following statements is correct?
A. Cathy should specialize in both pies and cakes.
B. There are no gains from specialization and trade.
C. Lewis should specialize in pies, and Cathy should specialize in cakes.
D. Cathy should specialize in pies, and Lewis should specialize in cakes
Answer:
D. Cathy should specialize in pies, and Lewis should specialize in cakes
Explanation:
For determining which statement is correct first we need to find out the
Cathy Opportunity cost for making a pie is
= 1 ÷ 1.5
= 0.66 cake
Now for making a cake is
= 1.5 ÷ 1
= 1.5 pies
Lewis opportunity cost for making a pie is
= 1.5 ÷ 2
= 0.75 cake
And for making a cake is
= 2 ÷ 1.5
= 1.33 pies
Therefore the option D is correct
Agent Armstrong is employed by XYZ Agency, which is under contract with ABC Health Plan, a Medicare Advantage (MA) plan that offers plans in multiple states. XYZ Agency maintains a website marketing the MA plans with which it has contracts. Agent Armstrong follows up with individuals who request more information about ABC MA plans via the website and tries to persuade them to enroll in ABC plans. What statement best describes the marketing and compliance rules that apply to Agent Armstrong?
Answer:
Agent Armstrong needs to be licensed and appointed in every state in which beneficiaries to whom he markets ABC MA plans are located.
Explanation:
In the given scenario XYZ Agency maintains a website marketing the MA plans with which it has contracts. So they are not in one location.
Clients from multiple states can subscribe to their services via website.
Agent Armstrong follows up with individuals who request more information about ABC MA plans via the website and tries to persuade them to enroll in ABC plans.
Since clients enroll in different locations there is a need for Armstrong to be licensed and appointed in every state in which beneficiaries to whom he markets ABC MA plans are located.
This will satisfy the varying compliance rules that each state of operation may have. Thereby providing seamless service delivery to customers of XYZ agency.
" Ryan knows the attitudes his customers develop after they have purchased his yearly lawn care service will become the basis for determining whether they renew each year. Ryan knows he needs to convey _____________, guaranteeing his work in writing. Group of answer choices"
Answer:
Assurance.
Explanation:
Ryan knows the attitudes his customers develop after they have purchased his yearly lawn care service will become the basis for determining whether they renew each year. Ryan knows he needs to convey assurance, guaranteeing his work in writing.
Assurance is the act of providing your customers with accurate and current information about your business operations, and how effective, reliable and efficient it can be.
In order to guarantee his work in writing, Ryan needs to convey assurance to his customers so as to win their trust and believe in his mission statement.
Hence, the basis for getting your customer's patronage is to convey assurance in your business dealings.
A commercial bank has checkable-deposit liabilities of $500,000, reserves of $150,000, and a required reserve ratio of 20 percent. The amount by which a single commercial bank and the amount by which the banking system can increase loans are
Answer:
What are the options?
Explanation:
You own 1,000 shares of stock in Avondale Corporation. You will receive a dividend of $1.04 per share in one year. In two years, Avondale will pay a liquidating dividend of $37.50 per share. The required return on Avondale stock is 15.8 percent. What will your dividend income be this year if you use homemade dividends to create two equal annual dividend payments? a. $19,270 b. $16,712 c. $18,667 d. $17,935 e. $20,400
Answer:
Dividend = $17,935
Explanation:
We need to calculate the current share price
Current share price = ({Dividend year 1} ÷ {1 + required return}) + ({Dividend year 2} ÷ {1 + required return}^2)
Current share price= ({1.04} ÷ {1 + 0.158}) + ({37.5} ÷ {1 + 0.158}^2)
Current share price= 0.898 + 27.96
Current share price= $28.86
To calculate income for 2 years
Share price is $28.86
Return is 15.8%
Current share price = ({Dividend year 1} ÷ {1 + required return}) + ({Dividend year 2} ÷ {1 + required return}^2)
28.86 = ({Dividend year 1} ÷ {1 + 0.158}) + ({Dividend Year 2} ÷ {1 + 0.158}^2})
28.86 * 1.158 * 1.341 = (Dividend * 1.158) + (Dividend * 1.341)
44.82 = 2.499 * (dividend)
Dividend = $17.935
So for 1,000 shares
Dividend = 1,000 * 17.935 = $17,935
Huron Company produces a commercial cleaning compound known as Zoom. The direct materials and direct labor standards for one unit of Zoom are given below: Standard Quantity or Hours Standard Price or Rate Standard Cost Direct materials 7.80 pounds $ 2.30 per pounds $ 17.94 Direct labor 0.30 hours $ 8.00 per hour $ 2.40 During the most recent month, the following activity was recorded:
a. 25,900 pounds of material were purchased at a cost of $2.10 per pound.
b. All of the material purchased was used to produce 3,000 units of Zoom.
c. 700 hours of direct labor time were recorded at a total labor cost of $6,300.
Required: 1. Compute the materials price and quantity variances for the month.
2. Compute the labor rate and efficiency variances for the month.
Answer:
Instructions are below.
Explanation:
Giving the following information:
Standard Cost Direct materials 7.80 pounds $ 2.30 per pounds $7.94
Direct labor 0.30 hours $ 8.00 per hour $ 2.40
Actual:
a. 25,900 pounds of material was purchased at a cost of $2.10 per pound.
b. All of the material purchased was used to produce 3,000 units of Zoom.
c. 700 hours of direct labor time were recorded at a total labor cost of $6,300.
To calculate the direct material price and quantity variance, we need to use the following formulas:
Direct material price variance= (standard price - actual price)*actual quantity
Direct material price variance= (2.3 - 2.1)*25,900
Direct material price variance= $5,180 favorable
Direct material quantity variance= (standard quantity - actual quantity)*standard price
Direct material quantity variance= (7.8*3,000 - 25,900)*2.3
Direct material quantity variance= $5,750 unfavorable
To calculate the direct labor rate and efficiency variance, we need to use the following formulas:
Direct labor time (efficiency) variance= (Standard Quantity - Actual Quantity)*standard rate
Direct labor time (efficiency) variance= (0.3*3,000 - 700)*8
Direct labor time (efficiency) variance= $1,600 favorable
Direct labor rate variance= (Standard Rate - Actual Rate)*Actual Quantity
Direct labor rate variance= (8 - 6,300/700)*700
Direct labor rate variance= $700 unfavorable
Carter Co. sells two products: Arks and Bins. Last year, Carter sold 14,000 units of Arks and 56,000 units of Bins. Related data are as follows: Product Unit Selling Price Unit Variable Cost Unit Contribution Margin Arks $120 $80 $40 Bins 80 60 20 Carter Co.'s sales mix last year was
Product Unit Selling Price Unit Variable Cost Unit Contribution Margin Arks $120 $80 $40 Bins 80 60 20 Carter Co.'s sales mix last year was 0.20 and 0.80.
What is selling price?Selling price is defined as the final cost of a product, or how much the customer ultimately pays. Steps to determine the selling price are Discover the price per item. Choose the gross profit margin you want. Fill in the formula using these values. Apply the outcome and interpret it.
20% Arks and 80% Bins made up the sales mix for Carter Co. last year.
To calculate the total units sold for Carter Co., we sum the two sold units. Seventy thousand units were sold altogether.
14 units plus 56 units equals 70 units.
We divide the number of units sold by Arks (14,000 units) by the total number of units sold by Carter Co. to get the sales mix of Arks (70,000 units). 20% of Arks' sales mix is in retail.
14,000 / 70,000 = 0.20 is the sales mix for Arks.
We divide the number of units of Bins (56,000 units) by the total number of units sold by Carter Co. to determine the sales mix of Bins (70,000 units). Bins' sales mix is 80% mixed.
56,000 / 70,000 = 0.80 is the sales mix of bins.
Thus, product Unit Selling Price Unit Variable Cost Unit Contribution Margin Arks $120 $80 $40 Bins 80 60 20 Carter Co.'s sales mix last year was 0.20 and 0.80.
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An applicant is discussing his options for Medicare supplement coverage with his agent. The applicant is 65 years old and has just enrolled in Medicare Part A and Part B. What is the insurance company obligated to do?
A. Exclude pre-existing conditions from coverage under the supplement policies
B. Look at the applicant's medical history to decide what premium to charge
C. Send the applicant to a doctor for a physical. Nothing can happen until they get the results.
D. Offer the supplement policy on a guaranteed issue basis
Answer:
D, Offer the supplement policy on a guaranteed issue basis.
Explanation:
Since the applicant has enrolled in both Medicare part A and B, the insurance has nothing more to do than offer the supplementary policy requested by the applicant.
Medicare is an important enrollment for person that have attained the age of 65. It is is a scheme that helps people of that age and above with their medical bills from there on. It is divided into Parts A and B and it is mandatory at the age of 65 that an individual enrols for medicare Part A irrespective of whether the individual is working or not or has an existing health plan from the employer. Part B on the other hand is important to enhance Part A but could be waived or stopped as decided for reasons best known to the individual.
Cheers
Lytle River Company operates a public water supply system. Lytle must send to every household that is supplies with water an annual statement describing a. Lytle's financial situation and material facts that might affect it. b. other business in which Lytle is involved and to what extent. c. the source of the water, and any contaminants and health concerns. d. parties who might be held liable if pollution problems arise. e. C and D are both correct.
Answer:
Lytle River Company
c. the source of the water, and any contaminants and health concerns.
Explanation:
When Lytle River Company sends to every household that it supplies with water an annual statement, the statement should indicate the source of the water that Lytle River Company supplies. It should also contain information about possible contaminants and other health concerns to enable the households understand how the water they drink is treated and how they should use it. This information is important to safeguard households. It will also help them to know the parties to be held liable for pollution problems.
When Panasonic considers how to price a new product, the company determines what price it thinks its customers will pay, and then identifies what profit the company needs. From there the company determines the features it can offer on this product. This method of determining price is known as
Answer:
b) target costing.
Explanation:
Target cost refers to the costing in which the firm is able to reduce its product price during the new development of product process
It could be estimated by
= Market price - expected profit margin
It always be customer focused
As in the given situation, it is mentioned how to determined the price, what actually customer would pay, and the needed profit
So this price determination refers to the target costing
Which is NOT one of the similarity between projects and operations Both are Performed by Individuals Both are Limited by constraints (e.g.) Resources Both needs to be Planned, Executed, Monitored and Controlled Both are ongoing
Answer:
Both are ongoing
Explanation:
Remember, projects do not go on forever. Rather, projects are usually marked by deadlines. However, operations are simply ongoing activities in which resources are planned, executed, monitored and controlled by individuals.
which may be constrain
A none similarity between projects and operations is that, they both are not ongoing .
If the government requires a natural monopoly to price at marginal cost, Group of answer choices monopoly firms will earn zero economic profits because the price of the good equals the cost of producing that good. monopoly firms will operate at a loss because P < AC. more firms will be able to enter the market. producer surplus will increase because quantity supplied is greater.
Answer:
monopoly firms will operate at a loss because P < AC
Explanation:
A monopoly is when there is only one firm operating in an industry.
A natural monopoly exists either because of high start-up costs or high economies of scale.
A natural monopoly has a decreasing average cost for some output. When the average cost is falling, the marginal cost lies below the average cost. If the government sets price to be equal to marginal cost, which lies below the average cost, the monopoly would incur losses.
Carrie recently received the Employee of the Year award at the call center where she works as a customer service representative. She was chosen for the award because she is known to be highly courteous toward even the most difficult of callers and is efficient at handling their queries. A month after receiving the award, Carrie submits her resignation. According to her exit interview, she felt burnt out. Which of the following best explains this situation?
A) Carrie was overwhelmed by the award.
B) Carrie lacked the skills and motivation to perform her job in an effective manner.
C) Carrie felt the strain of having to constantly fake positive emotions towards her customers.
D) Carrie was demotivated by the lack of recognition and respect from her peers.
E) Carrie was unable to empathize with her callers and the problems that they faced.
Answer: C. Carrie felt the strain of having to constantly fake positive emotions towards her customers
Explanation: Burn outs describes conditions where an individual becomes tired due to overwork. Carrie feeling the strain of having to constantly fake positive emotions towards her customers (due to her highly courteous nature) turned in her resignation as this can be very draining and can be seen as overwork.
Why do I have pay for answers when I'm going to school to be able to earn money? Yes, I'm 16, almost 17 and don't have a job because my mom doesn't want me leaving the house because it's Chicago.
Explanation:
Thank you for this brilliant question, the truth is that you do not have to pay the fee yourself, you parents are meant to pay the fee for you, think of it, when you are asked for school fee in school, who is expected to pay? your mom i guess right, same thing with paying for answers, which is still part of your education, now paying for answers so that you keep learning is the obligation of your parents (mom or dad).
Thank you if you need for clarification do not hesitate to ask more questions
Which of the following statements is true about qualitative research?
A) it provides a marketer with responses that can be presented with precise estimations.
b) it is used to formulate and define a problem more clearly.
C) it usually involves asking respondents to select a response from a set of choices.
D) Data from qualitative research can be summarized in percentages, averages, or other statistics.
E) it is generally associated with survey research that involves yes/no questions.
Answer: b) it is used to formulate and define a problem more clearly.
Explanation:
Qualitative Research involves the use of qualitative data in research. Qualitative data refers to data that is non-numerical such as text, videos, and audio. When using this type of data, the source of the information is able to explain concepts more precisely as opposed to Quantitative data that limits sources to certain responses. With this more precise explaining comes the ability to formulate and define a problem much more clearly.
Qualitative research is used to formulate and define a problem more clearly.
The following information should be considered:
Qualitative Research includes the use of qualitative data in research.Qualitative data means the data that is non-numerical like as text, videos, and audio.Therefore we can conclude that Qualitative research is used to formulate and define a problem more clearly.
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An aging of a company's accounts receivables indicates that the estimate of uncollectible receivables totals $7,900. If the Allowance for Doubtful Accounts has a $700 credit balance, the adjustment to record the bad debt expense for the period will require a
Answer:
Debit to Bad Debt Expense Account for $7,200
Explanation:
Based on the information given we were told that the company accounts receivable shows the estimate of uncollectible receivables of the amount of $7,900 which means that if the Allowance for Doubtful Accounts has an amount of $700 as a credit balance, the adjustment to record the bad debt expense will be :
Debit to Bad Debt Expense account for the amount $7,200 calculate as :
Uncollectible receivables totals $7,900-Allowance for Doubtful Accounts $700 =$7,200
(7,900 - 700 )
Microeconomics is best described as the study of the choices made by individual households, firms, and governments. inflation, unemployment, gross national product, and the nation's economy as a whole. how markets interact in the aggregate economy. marginal changes in the economy.
Answer:
the study of the choices made by individual households, firms, and governments.
Explanation:
Microeconomics refers to the study of the choices with respect to individuals, households, firms, governments in order to make the decision and the resources to be allocated in an efficient and effective manner
It also focused to maximise the production of the company so that the company could able to accomplish its sales by offering a lower price so that it also competes in the industry
Hence, the first option is correct
An investment-banking firm underwrites a new issue of stocks and bonds by Multiple Choice buying the entire bond or stock issue a company wants to sell at an agreed discount. guaranteeing a minimum price in the market for a stock or bond. selling the entire bond or stock issue for the issuing firm in global markets. putting up collateral for long-term loans, such as bonds.An investment-banking firm underwrites a new issue of stocks and bonds by Multiple Choice buying the entire bond or stock issue a company wants to sell at an agreed discount. guaranteeing a minimum price in the market for a stock or bond. selling the entire bond or stock issue for the issuing firm in global markets. putting up collateral for long-term loans, such as bonds.
Answer:
buying the entire bond or stock issue a company wants to sell at an agreed discount.
Explanation:
An investment-banking firm underwrites a new issue of stocks and bonds by buying the entire bond or stock issue a company wants to sell at an agreed discount.
Underwriting can be defined as the process through which an individual or organization assumes a financial risk at an appropriate and agreed fee.
In order to underwrite a new issue of securities such as bonds or stocks, the investment-banking firm buys the entire securities that the issuer is willing to sell at an agreed discount.
Exercise 8-07 At December 31, 2019, Pharoah Company Company had a credit balance of $18,100 in Allowance for Doubtful Accounts. During 2020, Pharoah Company wrote off accounts totaling $12,900. One of those accounts ($2,100) was later collected. At December 31, 2020, an aging schedule indicated that the balance in Allowance for Doubtful Accounts should be $23,700. Prepare journal entries to record the 2020 transactions of Pharoah Company Company
Answer:
Entries are given below
Explanation:
DATA:
Opening Balance in the allowance for doubtful debt = $18,100
During 2020 Pharoah company wrote off accounts totaling 12,900
Entry DEBIT CREDIT
Allowance for Doubtful Accounts $11,800
Accounts Receivable $11,800
At December 31, 2020, an aging schedule indicated that the balance in Allowance for Doubtful Accounts should be $23,700
Entry DEBIT CREDIT
Bad debt expense $17,400
Allowance for doubtful debt $17,400
Working
Balance before adjustment = $18,100 - $11,800
Balance before adjustment = $6,300
After Aging schedule indication
Adjustment = $23,700 - 6,300
Adjustment = $17,400
Margot's team uses an online calendar that links everyone's schedule and helps the team efficiently plan meetings, track RSVPs, and share follow-up information with all attendees. This demonstrates the use of _______ to enhance communication. groupware information richness all-channel networking groupthink social networking
Answer:
groupware
Explanation:
Groupware refers to the application software that helps people to collaborate on common work and to achieve the targets. These applications help people working from distant places who join together to fulfill a common goal. Sharing calendars, emails, and electronic meetings are some of the services included in groupware.
In the above excerpt, the team of Margot is using the groupware to enhance communication among the team members by making the use of online calendar.
Palmer goes to a truck dealership and asks for a truck capable of handling a 5000-pound load. He makes it clear that it is up to the salesman to select an appropriate truck. Without saying anything about the truck's load-carrying capacity, the salesman selects a certain truck for Palmer. Relying on the salesman's choice, Palmer buys the truck in question. However, the truck can only handle a 2500-pound load. Palmer wants to sue the dealership because he didn't get the truck he desired. Which of the following product liability theories gives Palmer his best chance of recovery?
A. Express warranty
B. Implied warranty of fitness
C. Implied warranty of merchantability
D. Section 402A
Answer:
B. Implied warranty of fitness
Explanation:
An implied warranty of fitness for an specific purpose refers to the fact that if the seller of a product knows that the product will be used for an specific purpose and that the buyer is purchasing that product for that using it that way, then an implied warranty of fitness is formed. In this case, the seller knew that Palmer was going to carry 5,000 pounds in the truck and therefore, by offering a certain truck to Palmer, an implied warranty of fitness was formed stating that the truck could carry that load.
Suppose that Rihanna sells 1,000 tickets to a concerts at $480 each. If the equilibrium price is $600 per ticket for a fixed supply of 1,000 tickets, what is the value of the additional economic rent that Rihanna could earn if she charged the market clearing price?
Answer:
$120,000
Explanation:
Calculation of the value of the additional economic rent that Rihanna could earn if she charged the market clearing price
The first step to find the total amount of the tickets that Rihanna sold
Since we were told that she sells 1,000 tickets to a concert at $480, this means the total amount will be:
Total amount = 1,000 * $480
= $480,000.
Since the Supply is fixed for 1,000 tickets and equilibrium price per each ticket is $600 which means the total amount will be calculated as :
Total amount = 1,000 * $600
= $600,000.
The last step is to find the additional economic rent
Additional economic rent=$600,000 - $480,000
Additional economic rent=$120,000.
Therefore the value of the additional economic rent will be $120,000
Standard costs are: Multiple Choice Actual costs incurred to produce a specific product or perform a service. Preset costs for delivering a product or service under normal conditions. Established by the IMA. Rarely achieved. Uniform among companies within an industry.
Research into genetically modified crops has led to significant productivity gains for countries such as the United States that employ these techniques. Countries such as the European Union member nations, however, have imposed controls on the import of these products, citing concern for public health. Given the situation, the European Union's regulation of genetically modified crops is
Answer:
The answer is " If you have legitimate health issues, then it is the part of the share-the-earnings theory".
Explanation:
It also stands for EPS, which is the primary financial measure that demonstrates a firm ’s profitability. Its estimation consists of dividing the gross profit of the business with its number of shares. Its greater the company's profits for each share, the greater its productivity.
It is the management of efficiency, that indicates how often revenue the business generates for its stockholders buy not just because of increases in earnings, and because of the impact of new ordinary shares.
Luker Corporation uses a process costing system. The company had $177,500 of beginning Finished Goods Inventory on October 1. It transferred in $854,000 of units completed during the period. The ending Finished Goods Inventory balance on October 31 was $175,200. The entry to account for the cost of goods sold in October is:]
Answer:
Dr Cost of goods sold 856,300
Cr Finished goods inventory 856,300
Explanation:
we must first determine the value of the total goods manufactured:
beginning inventory of finished goods + finished goods = $177,500 + $854,000 = $1,031,500
the cost of goods sold = total goods manufactured - ending finished goods = $1,031,500 - $175,200 = $856,300
Dr Cost of goods sold 856,300
Cr Finished goods inventory 856,300
Suppose that a consumer has a health insurance program with co-payments of $10 per doctor visit. If the consumer purchases 6 doctor visits and the bill charged by the doctor for 6 visits is $360, the portion of this cost covered by a third-party payer is:
Answer:
$300
Explanation:
Given that s a health insurance program with co-payments of $10 per doctor visit.
Thus,
amount paid by insurance in 1 visit = $10
Amount paid by insurance in 6 visit = $10*6 = $60
Total bill charged by the doctor in 6 visit = 360
Amount paid by the consumer = Total bill charged by the doctor in 6 visit - Amount paid by consumer in 6 visit = $360 - $60 = $300
Since , consumer is the third party payer he pays $300 out of total $360 bill charged by the doctor.
In fraction ,portion of bill paid by the third party payer = 300/360 = 5/6
Thus, 5/6 portion of bill is paid by third party payer.
Stockit Inc. has 1,000 shares of 5%, $100 par value, cumulative preferred stock outstanding. In its first two years of business, Stockit did not declare a dividend. As a result, Stockit's balance sheets at the end of its first two years of business should:
Answer:
The balance sheet should include no dividends payable
Explanation:
Looking at the scenario described , as Stockit did not declare a dividend in the two years of operation , this mean that dividends payable will not appear of the balance sheet.
Dividends payable is the amount of after tax profit that a company has authorized for distribution to shareholders as dividends . but not yet paid out in cash.This is recorded as liability on the company's balanced sheet after declaration and before payment. But on payment , it no longer appear on the balanced sheet.
In a situation where dividends are not declared by the company for whatever reason , it does not appear on the balance sheet
Mitchell Corporation manufactures a single product. The selling price is $85 per unit, and variable costs amount to $68 per unit. The fixed costs are $16,500 per month. What will be the monthly margin of safety (in dollars) if 1,800 units are sold each month
Answer: $ 70,500
Explanation:
Given, Number of units = 1800
Per unit selling price = $85
Total Sales price = (Number of units ) x (Per unit selling price)
= 1800 x $ 85
= $153,000
Variable cost per unit = $68
Total variable cost = 1800 x $68 = $122,400
Contribution Margin = (Sales price ) - (Variable cost)
= $ (153000-122400)
= $30,600
Fixed cost = $16,500 per month
Profit = (Contribution Margin) - (Fixed cost)
= $(30,600-16,500)
= $14,100
PV ratio = (Contribution Margin) ÷ (Total sales) x 100%
= $ (30,600÷153,000)x 100%
=20%
Margin of Safety = (profit) ÷ (PV ratio)
= ($14,100) ÷ (20%)
= ($14,100) ÷ (0.20)
= $ 70,500
Hence, the monthly margin of safety = $ 70,500
A project's incremental cash flow is the difference between the firm's cash flow if it accepts the project versus if it rejects the project. Thus, if a project has an initial cost of $1 million in Year 1 and no other costs or revenues, then the incremental cash flow in that year will be -$1 million. True or false?
Answer:
false
Explanation:
Incremental cash flow is the additional cash flow from a project after the initial investment.
if a project has an initial cost of $1 million in Year 1 and no other costs or revenues, then the incremental cash flow in that year will be 0