Answer:
Fit dimension
Explanation:
Utility function is the function which is vital that measures the preferences over a set of the services or goods. Utility states the consumer or the customer satisfaction, receiving the consuming and choosing the service or product.
Consumer utility function is the function which states the satisfaction or contentment of the customer. So, if the firm or the company who is offering the tailor made ( which means as per the requirement of the customer), to the customer that appeals the fit dimension of the utility function of the customer as it captures how well the service or the product matches the characteristics of the given customer.
Answer:
c. $139,000 of net cash used.
Explanation:
Investing Activities shows results from Purchase or Sales of Assets or Investments.
Cash flow from Investing Activities
Purchase of equipment (150,000)
Proceeds from the sale of equipment 131,000
Purchase of land (120,000)
Net Cash used by Investing Activities (139,000)
Net cash flows from investing activities for the year were: ($139,000)
Answer:
The present value of the future cash inflows from this investment is $19,740
Explanation:
Profitability Index is a useful tool for ranking project because we can know the amount/ value created by per unit of investment.
Profitability Index = Present value of future cash flow/ Initial Investment
↔ 0.329 = Present value of future cash inflow/ $60,000
↔ Present value of future cash inflow = 0.329 * $60,000 =$19,740
Answer:
Effective annual interest rate=0.52%
Explanation:
Step 1: Express the formula for calculating interest
The formula for calculating interest can be expressed as;
I=PRT
where;
P=principal amount borrowed
R=annual interest rate as a percentage
T=number of years
Step 2: Determine the value of the variables P, R and T
In our case;
I=$10
P=(125-10)=$115
R=unknown=r
T=2 months=2/12=1/6 years
replacing in the expression;
10=115×r×(2/12)
10=(230/12)r
r=10×12/230=0.5217
0.5217 rounded off to the nearest 2 decimal places is:
r=0.52%
Effective annual interest rate=0.52%
