MBA 5004 Final Exam Answers 2019 (South University Online).

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MBA 5004 Final Exam Answers 2019 (South University Online) Question 1 1. Primary objective of management 2. Value of the firm = $187,131.17 Question 2 1-What would be the quantity for revenue maximiza... tion and profit maximization? P=$36-$2Q Total revenue, TR=P*Q TR=($36-$2Q) *Q TR=36Q-2Q^2 MR=dTR/dQ MR=36-4Q Revenue is maximized at the point where, MR=0 MR=36-4Q 36-4Q=0 4Q=36 Q=36/4 Q=9 units, this is the quantity for revenue maximization. Question 3 price elasticity of demand lowest -- ordering a biopsy with suspicion of having cancer highest--- Purchasing gasoline to drive for fun income elasticity of demand lowest ---ordering a biopsy with suspicion of having cancer Highest--- Buying Nike running shoes unit income elasticity of demand Ordering X-ray films for check-up Question 4 An investment cash inflows ans cash outflows are as follows: INVESTMENT (000) CASH INFLOWS (000) 1,200 6,000 22,000 4,000 5,000 6,000 7,000 8,000 1-If the net salvage value in 9th year is equal to 24,000 and discount rate is 6%, would you invest according to net present value (NPV) method? 2-What is the profitability index for this investment? [Show More]

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