Answer:
NPV= 1,036.16
Explanation:
Giving the following information:
Initial investment= $9,000
Cash flows= $2,700 at the end of each of the next four years.
Interest rate= 3%
To calculate the net present value (NPV), we need to use the following formula:
NPV= -Io + ∑[Cf/(1+i)^n]
Cf1= 2,700/1.03= 2,621.36
Cf2= 2,700/1.03^2= 2,545
Cf3= 2,700/1.03^3= 2,470.88
Cf4= 2,700/1.03^4= 2,398.92
Total= 10,036.16
NPV= -9,000 + 10,036.16
NPV= 1,036.16
I believe the correct answer is the first option. The labor supply curve is upward sloping because the opportunity cost of leisure decreases as wages decrease and the opposite of such is true as well. As one work one hour more, one will have less time for other activities. As the work rate increases in value, then the opportunity cost increases as well.
Answer:
Break-even sales = $800,000.
Explanation:
<em>The beak-even point is the units of products to be sold or number of customers to be served to enable a business to cover exactly its total cost from the revenue. At the break-even point, the business makes no profit or no loss because the contribution from sales exactly equals the total fixed cost</em>
<em>Break-even in sales revenue = Total fixed cost/Contribution margin</em>
<em>Contribution margin (%) = Contribution/ sales × 100</em>
= 160,000/640,000
= 0.25 × 100
= 25%
<em>Fixed cost = Contribution - operating income</em>
= 160,000- -( 40,000)
= 160,000 + 40,000
= 200,000
<em>Break-even point sales = 200,000/25%</em>
= $800,000.
Answer:
b. cash , inventory, accounts receivable, accounts payable and risk management
Explanation:
Working capital is defined as a measure that shows how a company is operating efficiently and it's ability to meet the short term financial obligations.
When a business working capital is properly managed, then the business will be healthy financially hence operate successfully and able to meet up with it's daily obligations.
A good working capital manager must be able to make use of working capital management to maintain balance between profitability, growth and liquidity. The role of working capital manager is also to manage cash, inventory, accounts receivable and payable and risk management.
A working capital manager must be able to manage cash that will be used for a business daily operation, must ensure the business inventories are properly managed and accounted for. It's duty also include risk management as he is responsible for making decisions regarding day to day finance of a business operation; the success or failure in terms of meeting up with short term financial obligation depends on him.
Answer:
High inflation is costly, but they disagree about the costs of moderate inflation.
Explanation:
Inflation can be defined as the persistence rise in the price of goods and services. Inflation leads to a decline in the value of money this means that individuals may no longer to buy enough thing with the same amount of money which is previously enough to buy the things needed. The rise in the price of goods will equally mean inability to purchase the normal quantity of goods.
The main causes of inflation are demand pull and cost push. Demand pull occurs when manufacturers increase their prices due to the increase in demand for their products. Cost push occurs when manufacturers increase the prices of their products because the costs have also increased.
