The minimum amount that you will accept today if you are to select the lump sum offer is $11,324.66.
<h3>What is the present value of the cash flows?</h3>
The minimum amount that you will accept today if you are to select the lump sum offer is known as the present value of the cash flows. Present value is the sum of discounted cash flows.
Present value = ($4000 / 1.097) + ($4500 / 1.097²) + ($5200 / 1.097³) = $11,324.66
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Answer:
The main reason for imposing price ceilings is to protect the interests of the consumers in situations in which they are not able to afford needed commodities.
Explanation:
Answer:
The correct answer is: supply side economics.
Explanation:
Supply-side economics is a macroeconomic theory which advocates lowering of taxes and decrease in regulation to boost economic growth. It is directly in contrast to demand-side economics.
This theory focuses on reducing taxes, decreasing regulations on producers and declining borrowing rates.
This theory states that economic growth can be stimulated by boosting investments through tax reduction.
A. Which Firm will have Higher Profits in a Recession Period ?
During a recession period trade and industries are unsuccessful and there is allot of unemployment. During the period supply in the market and level of output in the company are likely to be low. Robotic automated process seems to be relatively cheap under high production output in a firm. Also the cost of maintenance of machinery is quite high which the firm can`t cater for during the period. In this period human workers are more recommended as the cost of production will be accounted for due to small numbers of employees where the cost of wages and salaries is quite low.
B. Which Firm will have a Higher Profit During a Boom?
During a boom the industry experiences a period of economic success as demand in the market is high. Automated robotics process are machines and carry out their work with allot of efficiency. Compared to human beings they are relatively faster and more efficient. This will will help the industry meet its high level of production target. They also reduce the cost of production as their maintenance cost is low under large scale production. Human workers seem expensive during this period because cost of wages and salaries is subject per-head.
The Firm with a Higher Beta.
The automated robotics firm will have a higher beta this is because the output will be high leading to increased supply and sale for better profitability. The robots will also function as an asset to the firm increasing the net worth to the company.
