Homework Answers
Question 5.
a. No, sunk costs cannot be recovered.
Explanation - Since sunk costs are the cost
that cannot be recovered and is already made in the past, it is
independent of any cost that may incur in the present or future.
This is why, sunk costs are not taken into consideration while
making decisions.
Question 6.
a. Framing bias
Explanation - Framing bias is a process of
emphasising on the options presented with positive or negative
implications. In this case, selling ice cream as 95% fat free
emphasises on the positive implications rather than negative one,
which makes the product more valuable to the health conscious
customers.
Question 7.
b. Altruism
Explanation - Jeremy Bentham's principle of
Utility (Utilitarianism) tells us that any action
performed, whether right or wrong, is based on the intention behind
the action. Altruism is being selfless and putting others interest
before oneself.
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Homework: Ch 6B, Making Investment Decisions With the NPV Ru Save Score: 0 of 2 pts 5 of 5 (5 complete) HW Score: 67.31%, 8.75 of 13 pts X P8-21 (similar to) Question Help In September 2008, the IRS changed tax laws to allow banks to utilize the tax loss carryforwards of banks they acquire to shield up to 100% of their future income from taxes (prior law restricted the ability of acquirers to use these credits). Suppose Fargo Bank...
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3. Identifying incremental cash flows Aa Aa E When firms make capital budgeting decisions, they should concern themselves with incremental cash flows, not net income, when evaluating projects. To determine the incremental cash flows associated with a capital project, an analyst should include all of the following except: The project's fixed-asset expenditures Changes in net working capital associated with the project The project's depreciation expense The project's financing costs Indirect cash flows often affect a firm's capital budgeting decisions. However,...
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needing help with these questions
- I_10 IUU JUULUUSEU- al strategy when making decisions about where to locate? QUESTION 4 Which of the following is NOT one of the things that a company should consider in their Government incentives offered in that location The experience of other firms from your country that have located there ! The competitive effect of that location OOOOO The "it" between the company and the location The characteristics of that location QUESTION 5 Which of...
Question 11 2 pts Jan is a Financial Aid director at ABC University. As a rule Jan will only direct students to apply for loans with companies that offer Jan financial payback as a percent of the loan. This is an example of conflict of interest harassment discrimination confidentiality issue - Previous Next > Question 15 2 pts "The way we do things around here" addresses an organization's O norms. myths. rituals. heroes. < Previous Next > Question 16 2...
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