Denise is a freelance writer who works with a number of clients. She used to charge by the hour, but she has now switched to charging by the page. In other words, she has moved from a ________ schedule.

A. fixed interval to a variable ratio
B. variable interval to a variable ratio
C. variable interval to a fixed ratio
D. variable interval to a continuous
E. fixed interval to a fixed ratio


Answer: E

Business

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Jojola Corporation is investigating buying a small used aircraft for the use of its executives. The aircraft would have a useful life of 5 years. The company uses a discount rate of 13% in its capital budgeting. The net present value of the initial investment and the annual operating cash cost is -$439,238. Management is having difficulty estimating the annual benefit of having the aircraft and estimating the salvage value of the aircraft. (Ignore income taxes.)See separate Exhibit 13B-1 and Exhibit 13B-2, to determine the appropriate discount factor(s) using the tables provided.Ignoring any salvage value, to the nearest whole dollar how large would the annual benefit have to be to make the investment in the aircraft financially attractive?

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Business