The statement " A net present value of zero ($0) signifies that the project's cash inflows will (1) be sufficient to recover the project's costs and (2) earn a return equal to the project's opportunity cost of capital " is TRUE
Explanation:
The net present value (NPV) measures the difference between the actual cash flow value and the current cash outflow value over time.
NPV is used for the study of the feasibility of a project or operation in capital budgeting and financial planning.
The discrepancy between the current value of cash flows and the existing price of cash outflows is measured over a cycle. As the name suggests, the net present value simply discounts the balances at a fixed rate, regardless of the current currency inflows and outflows.
Answer:
B) the temporary reduction of jobs during a downturn in the business cycle
Explanation:
Cyclical unemployment is B) the temporary reduction of jobs during a downturn in the business cycle. Unemolyoment reduces when there's a upturn in the economy.
I hope my answer helps you
Yes the answer is B I did the research for it .
Answer: $618,000
Explanation:
From the question, we are informed that the Fed makes an open market operation purchase of $200,000 and that the currency drain ratio is 33.33 percent and the desired reserve ratio is 10 percent.
We first have to calculate the money multiplier which will be:
= (1 + the currency drain ratio)/( the currency drain ratio + the reserve ratio)
= (1 + 33.33%)/(33.33% + 10%)
= ( 1 + 0.33)/(0.33 + 0.1)
= 1.33/0.43
= 3.09
The quantity of money increase will be:
= 3.09 × $200,000
= $618,000
The correct answer is option A
Reason:
It is during the initial stages of any business where funding is required to meet the working capital. Basically the fund is required to meet the expenses of inventory and account balances on receivable ends. However funds are also required when a business has been established much before and is growing its customer base and revenue but needs fund to expand its business.