Answer:
(i) 2.71 years
(ii) 5.38 years
(iii) Never or 0
Explanation:
1. Payback period:
= Initial cost ÷ cash inflows
= 1625 ÷ 600
= 2.71 years(Approx).
2. Payback period:
= Initial cost ÷ cash inflows
= 3225 ÷ 600
= 5.38 years(Approx).
3. The payback period for an initial cost of $5,100 is a little trickier.
Notice that the total cash inflows after eight years will be:
= 8 × $600
= $4,800
Payback period
= Initial cost ÷ cash inflows
= 5100 ÷ 600
= 8.5
This answer does not make sense since the cash flows stop after eight years, so again, we must conclude the payback period is never.
23,748.3853 i think that’s the answer
Answer: socialist economic system
Explanation: In simple words, a socialist system refers to the system in which the forces of demand and supply are heavily controlled by the government. In such economies, the goods and services are produced with an objective of social welfare and not generation of profit like in capital economy.
In the given case, the home country of Javier provided the service of public transportation at lower prices unlike in California.
Hence from the above we can conclude that the correct answer is socialist economic system.
