Answer:
Monopolistic competition can promote different features of their products and consumers are willing to pay more for products containing the features that they desire.
Explanation:
Here many firms create similar products but they are not a substitute of any other.This combines monopoly and competitive marketIt is a form of "imperfect competition"This has emerged because the product developed by different people target the same set of audience by providing few differentiation.Examples of monopolistic competition:
The restaurant businessConsumer servicesGeneral specialist retailingHotels / Pubs.\Advantages:
Greater ability to fundResearch & DevelopmentDisadvantage:
Higher priceFewer incentivesExplain what the implications are to the Canadian economy if the brain drain is not stopped? Within the implications, consider the various stakeholders in the economy who might be affected by the brain drain.
Answer:
Low tax collection, low working population
Explanation:
Brain drain is a condition where a country loses its population through migration. Generally, this happens with the low developing countries, because people try to search for jobs in developed countries. Canada will lose tax revenue collection and low working population as a result of the brain drain. Government is the most important stakeholder which will be affected by brain drain apart from that; hospitals and industrial units will be affected by the brain drain.
does working at chick fil a count as serving experience?
Answer:
I think so
Explanation:
Because you are providing people with food
Which of the following is a con of buying a franchise?
Answer:
A con of buying a franchise is limited business control and creativity.
Explanation:
A franchise is an authority by a company or government to an individual or groups of people to enable them to conduct specified business activities. It is a kind of license to utilize and have access to specific knowledge about a company or organization. The entity that can purchase the franchise at a certain cost depending on the value of the franchise, in return he/she gets a license to use the franchise within the threshold of the licensing agreement.
Purchasing a franchise has it's advantages and disadvantages.One major advantage is; since buying a franchise involves buying the right to use a company's name, this is beneficial since there is a ready-made business operation. On the other hand, franchise has also a disadvantage. The major disadvantage of buying a franchise is that there is no business control since one has limited creativity with the product. The franchise always has a certain in built brand, limiting the ability of the person buying the franchise to be creative with adding or taking from the franchise.
A company receives money for the sale of its stock
A) during its IPO
B) whenever its stock is traded
C) when shares are purchased in a secondary market
D) when shares are privately traded
The company receives money for the sale of its stock when shares are purchased in a secondary market.
Explanation:The answer to the question is C) when shares are purchased in a secondary market.
Companies receive money for the sale of their stock when shares are purchased in a secondary market. This is different from an initial public offering (IPO), where shares are sold to the public for the first time.
For example, if a company's stock is listed on a stock exchange, such as the New York Stock Exchange, investors can buy and sell shares of the company's stock, and the company will receive money when those shares are purchased.
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“The Designers” an international furniture making company wants to expand its business in Pakistan by introducing its specialized Teak-wood rocking chair. For this purpose, the company needs a warehouse to store the goods. The company has forecasted the demand of the chair to be 4000 units each year for the next four years. The revenue generated by the company is Rs.20000 per chair. A single chair takes up an area of about 10 square feet. Swift Logistics, a warehousing expert company, has offered to provide its services for storage of the goods. It has presented two alternatives: either to Lease the warehouse at the rate of Rs.10000 per 100 square feet or have it on Spot Market rate which is Rs.15000 per 100 square feet. Task: a) Being the supply chain manager of “The Designers”, you have to decide either to hire the warehouse on Lease or choose On Spot rate on the basis of a Discounted Cash Flow Analysis with discount rate of 15%; considering the fact that the only relevant cost is the warehouse cost (7 marks) b) If the company decides to shut down the production after two years, will the option chosen in Part (a) still be feasible? Provide justification for your answer (3 marks) Instructions: In this assignment, you have to calculate the NPV (Net Present Value) of both options. You are required to show the necessary calculations in solution. No theoretical definitions and explanations a
Answer:
a. I would consider consider leasing since the profits gained from leasing ($216,978,355.60) is greater compared to the profits if a spot rate is considered ($214,676,191.10) in 4 years.
b. I would consider consider leasing since the value gained from leasing ($123,553,875.20) is greater compared to the value if a spot rate is considered ($120,982,986.80) in 2 years.
Explanation:
a. Determine best option
Step 1: Determine total revenue per year if they meet the demand.
Total revenue per year=revenue per chair×number of chairs per year
where;
revenue per chair=Rs.20,000
number of chairs per year=4,000 units
replacing;
Total revenue per year=(20,000×4,000)=$80,000,000
Step 2: Determine the net revenue per year for Leasing
Net revenue=total revenue-total cost for leasing
total cost for leasing=cost per chair per square feet×area per chair×number of chairs
where;
cost per chair per square feet=10,000/100=$100
area per chair=10 square feet
number of chairs=4,000
replacing;
total cost for leasing=100×10×4,000=$4,000,000
Net revenue=80,000,000-4,000,000=76,000,000 per year
Step 3: Determine the present value of the net revenue per year for Leasing
Year Future cash flow Present cash flow Amount
1 76,000,000 76,000,000/{(1+0.15)^1} 66,086,956.52
2 76,000,000 76,000,000/{(1+0.15)^2} 57,466,918.71
3 76,000,000 76,000,000/{(1+0.15)^3} 49,971,233.66
4 76,000,000 76,000,000/{(1+0.15)^4} 43,453,246.67
Total present value of the future net revenue for leasing=(66,086,956.52+57,466,918.71+49,971,233.66+43,453,246.67)=
$216,978,355.60
Step 3: Determine the present value for the cost for spot Market rate
Since the spot market rate is paid once;
Total cost=(15,000/100)×10×4,000=$6,000,000
Total cost in four years=6,000,000×4=$24,000,000
Present value of spot rate cost=24,000,000/{(1+0.15)^4}=$13,722,077.89
Step 4: Determine the present value of the revenue per year
Year Future cash flow Present cash flow Amount
1 80,000,000 80,000,000/{(1+0.15)^1} 69,565,217.39
2 80,000,000 80,000,000/{(1+0.15)^2} 60,491,493.38
3 80,000,000 80,000,000/{(1+0.15)^3} 52,601,298.59
4 80,000,000 80,000,000/{(1+0.15)^4} 45,740,259.65
Present value of Total revenue=69,565,217.39+60,491,493.38+52,601,298.59+45,740,259.65=
$228,398,269
Step 5: Determine the present value of the net revenue per year for sport rate
Net present value=(228,398,269-13,722,077.89)=$214,676,191.10
I would consider consider leasing since the profits gained from leasing ($216,978,355.60) is greater compared to the profits if a spot rate is considered ($214,676,191.10).
b.
Step 6: Consider NPV for 2 years if they Lease
Year Future cash flow Present cash flow Amount
1 76,000,000 76,000,000/{(1+0.15)^1} 66,086,956.52
2 76,000,000 76,000,000/{(1+0.15)^2} 57,466,918.71
Net present value=(66,086,956.52+57,466,918.71)=$123,553,875.20
Step 7: Consider total revenue if the use a spot rate
Year Future cash flow Present cash flow Amount
1 80,000,000 80,000,000/{(1+0.15)^1} 69,565,217.39
2 80,000,000 80,000,000/{(1+0.15)^2} 60,491,493.38
Total revenue=(69,565,217.39+60,491,493.38)=$130,056,710.80
Step 7: Consider cost for 2 years if they use a spot rate
Total cost=6,000,000×2=$12,000,000
Present value=12,000,000/{(1+0.15)^2}=$9,073,724.008
Net present value=130,056,710.80-9,073,724.008=$120,982,986.80
I would consider consider leasing since the value gained from leasing ($123,553,875.20) is greater compared to the value if a spot rate is considered ($120,982,986.80) in 2 years.