Answer:
Market forces push toward equilibrium
Answer:
d. 3.5 years
Explanation:
We know that payback period is the estimated length of time it takes cash inflow from a project to recover back the cash outflow.
It is to be noted that the payback period makes use of cash flow and not profit, hence denoted by;
Payback period = Initial cost / Annual net cash inflow
Given that;
Initial cost = $420,000
Annual net cash inflow = $120,000
Therefore,
Payback period = $420,000 / $120,000
Payback period = 3.5 years
Answer:
An investment firm or fund is a partnership, trust or corporation that “pools” money from shareholders and invests it in the appropriate security instruments and multiply investment money.
Answer: C. 7.3%
Explanation:
The yield rate is a weighted average of the yields over the years:
= [ (1 * 6%) + (2 * 7%) + (3 * 8%)] / ( 1 + 2 + 3)
= 44%/ 6
= 7.33%
= 7.3%
