Answer:
Decline
Explanation:
there are four stages of product life cycle
1. introduction
2. growth
3. maturity
4. decline
In decline stage growth declines as a result of decrease in demand. The best decision at this stage is to divest the asset. Since Thermacare heat wrap was under performing it must be in decline stage and divestment of the brand was done by Procter and Gamble
Answer:
V = 3.5 (1 dollar circulates 3.5 times in a year)
In short term – Reduction of aggregate demand and real output
In long term – reduction of wages and increase of real output of firms
Nominal GDP will fall by $20 bilion
Explanation:
Equation of monetisation =
Total money in circulation = Total money demanded/total output
Money Supply * Money Velocity = Price Level * GDP
V = PY/M
Substituting the given values, we get –
V = 336/96
V = 3.5
This indicates 1 dollar circulates 3.5 times in a year
In short term – Reduction of aggregate demand and real output
In long term – reduction of wages and increase of real output of firms
Nominal GDP will fall by $20 bilion
Annual gross potential rental income from a property minus expenses (vacancy and collection losses, operating expenses, replacement reserves, property taxes, and property and liability insurance) equals Effective gross income . This is further explained below.
<h3>What is
Effective gross income?</h3>
Generally, Effective gross incomeis simply defined as the total effective gross revenue equals potential gross income less vacancy and collection losses + other income.
In conclusion, Potential gross revenue minus vacancy and collection losses, plus other income, is equivalent to effective gross income.
Read more about Effective gross income
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Answer:
The account balance by the end of year 3 will be : $5,283.2
Explanation:
You are planning to deposit $2,000 into an account at the end of year 1 and $3,000 at the end of year 2. The account earns 4% interest.
The account balance at the end of year 1 = $2,000
The account balance at the end of year 2 = $2,000 x (1+4%) + $3,000 = $2,080 + $3,000 = $5,080
The account balance at the end of year 3 = $5,080 x (1+4%) = $5,283.2
Answer:
c. 2.36 years
Explanation:
In the payback, we analyze in how many years the invested amount is recovered. The computation is shown below:
In year 0 = $750
In year 1 = $300
In year 2 = $325
In year 3 = $350
If we sum the first 2 year cash inflows than it would be $625
Now we deduct the $625 from the $750 , so the amount would be $125 as if we added the fourth year cash inflow so the total amount exceed to the initial investment. So, we deduct it
And, the next year cash inflow is $350
So, the payback period equal to
= 2 years + ($125 ÷ $350)
= 2.36 years
In 2.36 yeas, the invested amount is recovered.
