Which of the following is the rate of return, based on discounted cash flows, a company can expect to earn by investing in a capital asset?
A) accounting rate of return
B) bank interest rate
C) internal rate of return
D) return on investment
C
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Acme Global hired a contractor to replace all the carpeting in their executive offices. The company and the contractor agreed on a set price for the carpet installation. As the old carpet was removed, one of the Acme Global executives noticed that some subflooring needed replacing. He pointed it out to the contractor, who later fixed the subfloor along with the carpeting, under the assumption that this is what the company desired. The final bill to Acme Global included the original set price for the carpet installation plus the cost of replacing the subfloor. Even though the subfloor was outside the scope of the original contract, a court might find that Acme Global and the contractor have a ______ contract for the subfloor.
A. express B. implied C. quasi D. collective
At Ben's college, the local Dunkin' Donuts gives a 10 percent discount to students. Is this price discrimination? Why or why not?
What will be an ideal response?
On October 12 of the current year, a company determined that a customer's account receivable was uncollectible and that the account should be written off. Assuming the allowance method is used to account for bad debts, what effect will this write-off have on the company's net income and total assets?
A. Decrease in net income; no effect on total assets. B. Increase in net income; no effect on total assets. C. No effect on net income; decrease in total assets. D. Decrease in net income; decrease in total assets. E. No effect on net income; no effect on total assets.
The legal–political environment includes ______.
A. infrastructure B. regulations C. religion D. exchange rates E. demographic profile