The office product division in Hyacinth Company reported $11,250 net operating income with $75,000 average operating assets this year. The office product division has a new investment opportunity that would increase net operating income by $4,375 with $35,000 additional investment. 1. Which of the following statements is TRUE given that the company's minimum required rate of return is 10%?
Multiple Choice:
O Regardless of whether the division is evaluated on the basis of ROI or Residual income, the manager will not accept the new investment because it is bad for the company.
O If the division is evaluated on the basis of Residual income, the manager of the office product division would not accept the new investment because it is bad for the company.
O If the division is evaluated on the basis of Residual income, the manager of the office product division would accept the new investment because it is good for the division.
O If the division is evaluated on the basis of ROI, the manager of the office product division would accept the new investment because it is good for the division.
O If the division is evaluated on the basis of ROI, the manager of the office product division would not accept the new investment because it is bad for the company.

Answers

Answer 1
Answer:

Answer:

The true statement is that If the division is evaluated on the basis of Residual Income, the manager of the office product division would accept the new investment because it is good for the division

Explanation:

In order to find out which of the following statements is TRUE given that the company's minimum required rate of return is 10%, we would have to calculate the existing residual income and the post investment residual income as follows:

                                               Existing            Post Investment

Income                                  $ 11,250                   $15,625

Assets                                  $75,000           $110,000

ROI                                               15%                        14%

Charge on capital                $ 7,500.0                 $11,000.0

Residual Income                  $3,750.0          $4,625.0

Given that the  Existing Residual Income is $3,750.0 and the Post Investment  Residual Income is $4,625.0 If the division is evaluated on the basis of Residual Income, the manager of the office product division would accept the new investment because it is good for the division.


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QS 20-26A Merchandising: Cash payments for merchandise LO P4 Garda purchased $610,000 of merchandise in August and expects to purchase $730,000 in September. Merchandise purchases are paid as follows: 30% in the month of purchase and 70% in the following month. Compute cash payments for merchandise for September.

Answers

Answer:

The cash payments for September are $646000

Explanation:

The cash payments for merchandise are divided into to parts. The previous month's 70% payments and this month's 30% payments. Thus, the cash payments for the month of september will be 70% for AAugust purchases and 30% for september's purchases.

Thus the cash payments for merchandise will be,

Cash Payments = 0.7 * 610000 + 0.3 * 730000  = $646000

Answer:

=646000

Explanation:

30% pay in the month of purchase .

Note that th purchase made in September is $730,000 and 30% is due that month.

= 30% × 730,000

=  219,000

70% in the following month

For his category, payment be made in  September should relate to purchases made in August, and $610,000 was purchased in August

=70%× $610,000

=427,000

Cash payment f r te September

=  219,000 + 427,000

=$646,000

The returns on the Bledsoe Small-Cap Fund are the most volatile of all the mutual funds offered in the 401(k) plan. Why would you ever want to invest in this fund? When you examine the expenses of the mutual funds, you will notice that this fund also has the highest expenses. Does this affect your decision to invest in this fund?

Answers

Answer:

The yields are perhaps the most unpredictable for the small cap fund since the securities in this account are the most risky. It does not mean that the fund is awful, only that the danger is greater, and thus the overall return is greater.If you are prepared to accept the extra risk in expectancy of a greater return, you should like to put money in this fund. The increased costs for this Fund will be anticipated.Small cap funds typically have higher spending due largely to greater operating costs, along with lower resource analysis.

Plastics, Inc. and Joe's Canoe Shack both operate businesses located on the river. Plastics, Inc. dumps pollution into the river, which results in fewer canoe rentals for Joe. The marginal cost of cleaning up the pollution is $40,000 for Plastics, Inc. Joe estimates a reduction in pollution will lead to a marginal benefit of $27,000.1. If Joe owns the rights to the river, which of the following is the most likely outcome?

a. Plastics will pay Joe $32000 to pollute.
b. Joe will pay Plastics $32000 not to pollute.
c. Joe will enforce his property rights and not allow Plastics to pollute.
d. Plastics will use its property rights to continue polluting.

2. If Plastics, Inc. owns the rights to the river, which of the following is the most likely outcome?
a. Plastics will pay Joe $32000 to pollute.
b. Joe will pay Plastics $32000 not to pollute.
c. Joe will enforce his property rights and not allow Plastics to pollute.
d. Plastics will use its property rights to continue polluting.

Answers

If Joe owns the rights to the river will enforce his property rights and not allow Plastics to pollute and clean the pollution. Plastic is breaking his rights on the river

In this scenario Joe has benefit for 20,000

and Plastic losses for 12,000

2.- If Plastic own the rights to the river Joe will pay Plastics $15,000 to not pollute. This will make Plastic earn money for cleaning the river and Joe gain 5,000 incremental benefit

Explanation:

(A) Joe has legal claims, so It will used before any economic options

(B) Joe doesn't have legal claims, but It notices that a good offer make both parties win.

Plastic will receive 15,000 dollars to clean the river, which has cost of 12,000 realizing a net gain of 3,000

While Joe estimated a marginal benefit of 5,000 after paying to Plastic to clean the river, (20,000 benefit - 15,000 cost

First one is b

Second one is a

Climate change is expected to have a major impact on local weather patterns across the United States (and the world). Use a spatial equilibrium model for simple system of two cities to predict the effect of climate change on 1) A place where climate change lowers that amenity value of the local climate (call this place Miami) and 2) A place where climate change does not change the local amenity value (call this place Chicago). Which of the following best describes the prediction of your model?A. Real estate prices in Miami will rise, real estate prices in Chicago will fall.
B. Real estate prices in Miami will fall, real estate prices in Chicago will fall.
C. Real estate prices in Miami will rise, real estate prices in Chicago will rise.
D. Real estate prices in Miami will fall, real estate prices in Chicago will rise.
E. None of the above.

Answers

Answer:

D. Real estate prices in Miami will fall, real estate prices in Chicago will rise.

Explanation:

Real estate prices in Miami will fall because according to the model, climate change will lower the amenity value of the local climate. This means that climate change will make the climate of Miami less desirable for potential residents, causing a drop in the price of the real estate of the city due to less demand.

Chicago on the other hand, will have the amenity level of its climate increased, and this will attract more potential residents who will drive up demand, causing Chicago's real estate prices to rise.

Revise the following wordy, unorganized paragraphs. Include an introductory statement followed by a bulleted or numbered list. Look for ways to eliminate unnecessary wording.Because all casual clothing is not suitable for the office, these guidelines will help you determine what is appropriate to wear to work. Slacks that are similar to Dockers and other makers of cotton or synthetic material pants, wool pants, flannel pants, and attractive dress synthetic pants are acceptable. Casual dresses and skirts hemmed at the knee and lower or slits at or below the knee are acceptable. Dress and skirt length should be at a length at which you can sit comfortably in public. Casual shirts and blouses, dress shirts and blouses, sweaters, tops, golf-type shirts, tunics, and turtlenecks are acceptable attire for work. Most suit jackets or sport jackets are also acceptable attire for the office. Conservative athletic or walking shoes, loafers, clogs, sneakers, boots, flats, dress heels, and leather deck-type shoes are acceptable for work.

Answers

Answer:

Revision of wordy, unorganized paragraphs

Our organization's dress code allows suitable office dresses.  Find below the guidelines for allowed dresses:

  • Slacks similar to Dockers
  • Casual dresses and skirts hemmed at the lower knee
  • Comfortable dress and skirt length
  • Casual shirts and blouses are acceptable
  • Suit and sport jackets
  • Conservative athletic or walking shoes

Explanation:

The use of bulleted or numbered lists can help to organize wordy paragraphs.  They also eliminate some of the unnecessary wordings that have been included, thereby reducing the overall length.

Your team consists of 12 members, each in different locations, who are collaborating on a detailed committee report. Your team is in the final phase of the writing process and is making final edits to the report. Because you are each responsible for different aspects of the finalization process, the entire team needs to track changes so that the edits are visible before they are finalized.Which collaboration tools would be best for this situation? Check all that apply.A. Google DocsB. WikiC. E-mail

Answers

Answer: A. Google Docs

Explanation:

Google Docs will be the best solution in this case because it is a cloud computing tool that enables people to work on a document simultaneously across the world. As others are working on the documents, the saves that they make are instantly saved on the document and reflected across all users who have access to the document at the time.

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