It is the underground economy. The underground economy alludes to illicit financial action. Exchanges in the underground economy are illicit either in light of the fact that the great or administration being exchanged is itself unlawful or in light of the fact that a generally licit exchange does not agree to government revealing necessities. The main class incorporates medications and prostitution in many wards.
Answer:
PAYBACK PERIOD
Year Cashflow Cummulative cashflow
$ $
0 (16,000) (16,000)
1 8,000 (8,000)
2 6,000 (2,000)
3 5,000 3000
4 6,000
5 5,000
Payback period
= 2 years + 2,000/5,000
= 2.4 years
Explanation:
In this case, we need to deduct the initial outlay from the cashflows for each year until the initial outlay is fully recovered.
I believe the answer is c
Answer:
Donny, because his workers currently have less available capital to work with.
Explanation:
As the workers are constant in both companies and Sunshine already have two mixer and fryers. Thus, all its workers are already busy, but that of Donny's Doughnuts are not that busy, and can make effective utilization of such newly added mixer and fryer.
Accordingly, the capital will be adding the value to the company, but in case of Sunshine it might just add up in the cost and might not get such effective results. As the capital will be useless in case of no labors are present to work on such capital equipment.
