COMMUNIST
Under the Communist System the number of choices in the market is directly related to government involvement in markets.
Communist system is a market system wherein all market decisions are made by the government.
Answer:
A. NPV for A= $61,658.06
NPV for B = $25,006.15
B. 1.36
1.17
Project A
Explanation:
Net present value is the present value of after tax cash flows from an investment less the amount invested.
NPV can be calcuated using a financial calculator
for project A :
Cash flow in
Year 0 = $(172,325)
Year 1 41,000
Year 2 47,000
Year 3 85,295
Year 4 86,400
Year 5 56,000
I = 10%
NPV = $61,658.06
for project B
year 0 = $ (145,960)
Cash flow in
Year 1 27,000
Year 2 52,000
Year 3 50,000
Year 4 71,000
Year 5 28,000
I = 10%
NPV = $25,006.15
profitability index = 1 + NPV / Initial investment
for project A, PI = $61,658.06 / 172,325 = 1.36
For project B, PI = $25,006.15 / 145,960 = 1.17
The project with the greater NPV and PI should be chosen. this is project A.
To find the NPV using a financial calculator:
1. Input the cash flow values by pressing the CF button. After inputting the value, press enter and the arrow facing a downward direction.
2. after inputting all the cash flows, press the NPV button, input the value for I, press enter and the arrow facing a downward direction.
3. Press compute
Answer:
Debit Cash $1,000 and credit Notes Receivable $1,000.
Explanation:
The adjusting entry is shown below:
Cash Dr $1,000
To Notes receivable $1,000
(Being the note receivable collected by the bank is recorded)
While recording the transaction, we debited the cash account as it increases the cash balance and credited the note receivable.
Hence, the second option is correct
A couple of years: Is usually when a budget is usually constructed.
Answer:
B
Explanation:
I think you've already figured this out for yourself, but I thought I'd answer anyway and maybe clarify some things.
Supply is the total amount of a <u>good or service</u> that is available to consumers.
- Think about it: goods are physical things bought and sold, like apples. Services are actions done for another person, like taxi driving or renting a used car.
- None of the other answers make sense: a "device" is not a strictly defined term in economics; an "industry" can't be available to consumers, and a "warranty" isn't applicable.