You have determined that an ocf of $142,098 will result in a zero net present value for a project, which is the minimum requirement for project acceptance. the fixed costs are $418,000 and the contribution margin per unit is $87.20. the company feels that it can realistically capture 4.5 percent of the 120,000 unit market for this product. the tax rate is 34 percent and the required rate of return is 11 percent. should the company develop the new product? why or why not? yes. the project's required rate of return exceeds the expected irr. yes. the expected level of sales exceeds the required level of production. no. the required level of production exceeds the expected level of sales. no; the contribution margin is too high no. the ocf is too low.

Aconsumer values a house at $525,000 and a producer values the same house at $485,000. if the transaction is completed at $510,000, what level of tax rate will result in unconsummated transaction?

Licensing is perhaps the easiest method of entering into international trade. another method of entering international trade, which can be relatively low risk, is which opens several levels of involvement to company

Suppose that hubert, an economist from an am talk radio program, and kate, an economist from a nonprofit organization on the west coast, are arguing over government bailouts. the following dialogue shows an excerpt from their debate: kate: to recent financial crises, the concept of bailouts is a hot topic for debate among everyone these days. hubert: indeed, it’s gotten crazy! a government bailout of severely distressed financial firms is unnecessary because free markets will properly price assets. kate: i don’t know about that. without a bailout of severely distressed financial firms, the economy will experience a deep recession. the disagreement between these economists is most likely due todifferences in scientific judgments . despite their differences, with which proposition are two economists chosen at random most likely to agree? business managers can raise profit more easily by reducing costs than by raising revenue. central banks should focus more on maintaining low unemployment than on maintaining low inflation. employers should not be restricted from outsourcing work to foreign nations