Answer:
The answer is: A) A decrease in the price of paper used to make greeting cards.
Explanation:
In normal market conditions, an increase in the equilibrium quantity of greeting cards means that the quantity demanded and the quantity supplied of greetings cards increased. Usually an increase in the quantity supplied will result in an increase of the price of the good or service. But on this specific case something else made the price of the cards decrease. The only one of the four possible options that can explain an external cause for a decrease in the price of greetings cards, is a decrease in the price of paper used to manufacture them.
Answer:
Loans, Credit cards
Explanation:
If you don't pay your credit card on time, they will charge you a late fee. If you take out a loan, they make you pay back the money you took out and a percent of that amount for interest.
Answer:
The answer is c.8%.
Explanation:
The internal rate of return is the rate of an investment where the cash outlay and the actual value of the cash flows are the same, so the return is eqaul to zero. The actual value of the cash flow are calculated: annual cash flow multiplied by an annuity of $1 at a selected interest. So, the result has to be equal to the outlay (208,240). In this case, x is the annuity.
The annuity of 5.206 is obtained with the interest of 8%.
Answer:
It will depend on the interest rate; advise her to get a calculator.
Explanation:
The present value of the cash flows at a 5% and 9% discount rate are $2,859.41 and $2,759.11 respectively. The lump sum of $2900 is better because it is higher than the present values of the cash flows.
The decision to accept either the lump sum or the cash flows should depend on the interest rate.
If the present value of the cash flows discounted at the interest rate is greater than the lump sum, the cash flows should be accepted. If it isn't, the lump sum should be chosen.
I hope my answer helps you
