Economists refer to the relationship that a higher price leads to a higher quantity supplied as the

Bill is trying to decide what combination of bananas and apples to buy. A banana costs half as much as an apple. If no apples ar

tia_tia [17]

Answer:

To maximize utility, Bill can will buy one banana and one apple.

Explanation:

Utility maximisation refers to the concept that individuals and firms seek to get the highest satisfaction from their economic decisions.

For example, when deciding how to spend a fixed some, individuals will purchase the combination of goods/services that give the most satisfaction.

The theory of Utility maximization highlights two fators

combination of goods
Highest satisfaction that is cost effective

if a banana cost half as much as an apple,

Cost of banana = cost of apple/2

cost of apple - cost of banana × 2

Assuming the cost of one banana is $1

The cost of buying 6 bananas = 6×$1 = $6

the same $6 can only buy 3 apples

Therefore the price of apples is $2

If the total amount available = $6,

It can purchase one banana and one apple.

8 0

3 years ago

Ted, a project manager, wants to invest in a project with an initial cost of $58,500 and cash flows of $32,400 and $38,500 in Ye

Art [367]

Answer:

The project will not be approved

Explanation:

Internal rate of return is the discount rate that equates the after-tax cash flows from an investment to the amount invested

IRR can be calculated with a financial calculator

Cash flow in year 0 = $-58,500

Cash flow in year 1 = $32,400

Cash flow in year 2 = $38,500

IRR = 13,41%

profitability index = 1 + (NPV / Initial investment)

Net present value is the present value of after-tax cash flows from an investment less the amount invested.

NPV can be calculated using a financial calculator

Cash flow in year 0 = $-58,500

Cash flow in year 1 = $32,400

Cash flow in year 2 = $38,500

I = 10%

NPV = $2,772.72

PI = 1 + $2,772.72 / $58,500 = 1.04

The project will not be approved because the PI is less than the amount of return the boss wants even though the IRR is less than the discount rate

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

To find the IRR 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 IRR button and then press the compute button.

4 0

3 years ago

Which of the following is a type of sales promotion?

galben [10]

All of these is your answer

4 0

3 years ago

Tobin Supplies Company expects sales next year to be $520,000. Inventory and accounts receivable will increase $90,000 to accomm

elena-s [515]

Answer:

$17,200

Explanation:

Calculation to determine How much external financing will Tobin Supplies Company have to seek

Net Income=[$520,000 x 20%]

Net Income = $104,000

Dividend Pay-out= [$104,000 x 30%]

Dividend Pay-out = $31,200

Additions to Retained Earnings = [$104,00 - $31,200]

Additions to Retained Earnings=$72,800

Now let determine the The External Financing Needed using this formula

The External Financing Needed = Increase in Assets – Additions to retained earnings

Let plug in the formula

The External Financing Needed= $90,000 - $72,800

The External Financing Needed= $17,200

Therefore The External Financing Needed is $17,200

7 0

3 years ago

In your own words,explain why creating a budget and sticking to it is so important. Answer in at least 3-5 complete sentences.

worty [1.4K]

It help you to keep your eyes on your prices

It helps ensure you don’t spend money you don’t have

It helps to prepare for emergencies

3 0

3 years ago