Given Information:
P = $14,500
r = 8 %
Period = 12 years
Required Information:
Equivalent annual cost = ?
Answer:
Equivalent annual cost = $1,924
Explanation:
The equivalent annual cost EAC is often used to compare assets which have unequal useful life spans in order to make more cost effective decisions.
The equivalent annual cost can be found by using the following equation:
Equivalent annual cost = Present value*r / 1 - (1 + r)⁻ⁿ
Equivalent annual cost = 14,500*0.08/1 - (1+0.08)⁻¹²
Equivalent annual cost = $1,924
Answer:
(A) Transnational organization model.
Explanation:
This effect is called the interest rate effect.
<h3>What is interest rate effect?</h3>
- The loan cost impact alludes with the impact of an increment or decline in total interest in an economy because of changes in loan costs set by the national bank of a country.
- Loan fees have an opposite relationship with total interest. At the point when rates are high, request is low and bad habit versa. Because higher loan fees mean higher getting costs, individuals will ultimately begin spending less.
- The interest for labor and products will then drop, which will make expansion fall. Likewise, to battle the rising expansion in 2022, the Fed has been expanding rates over time.
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Target's Packaging Pricing Policy at Target provides a lot of deals such as A. Buy one get one free.
<h3>What is the Packaging Pricing Policy at Target?</h3>
The Packaging Pricing Policy at Target is one of the pricing strategies that Target uses to reward its customers and get them to buy more goods and products.
It involves buying a product and getting another free. Sometimes it also involves buying two products to get one free. This encourages a customer to buy a product so that they can get the other for free.
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Answer: B. enhances; drives down
Explanation:
Capital are the resources that are used by an organization which can bring about an increase in the production of such organization. Organizations undertake capital investment in order to enhance productivity and also increase revenue.
In such cases, this helps in driving down wages. This is because when an organization uses more of capital in its productive activities, less of labor is required which can help drive down wages.