Decrease in price of a substitute. Increase in price of a complement. Decrease in income if good is normal good.
The problem could most likely be a weak hydraulic brake hose.
A weak hydraulic brake hose could cause a spongy pedal. As the pressure builds in the system, the hose may expand and not relay the pressure to the brake units.
Answer:
We should not take the contract
Explanation:
Net present value = Initial investment + Present value of cash inflows
Net present value = -95000 + 100000/1.08
Net present value = -2407.41
Thus, the contract should not be taken because the NPV is negative
Answer:
$704,000
Explanation:
As we know that
Costs of goods sold = Beginning inventory + purchase made - ending inventory
$720,000 = $200,000 + purchase made - $188,000
So, the purchase would be
= $708,000
Now the cash payment would be
= Beginning balance of accounts payable + purchase - ending balance of accounts payable
= $80,000 + $708,000 - $84,000
= $704,000
