Answer:
Option (D) is correct.
Explanation:
It was given that video game is a normal good. We know that there is a positive relationship between the demand for a normal good and income of the consumer, hence, if there is an increase in the income level of the consumer then as a result the demand for a normal good increases which shifts the demand curve for normal good rightwards.
Therefore, this will lead to increase both equilibrium price and equilibrium quantity in the market for video games.
Answer:
The NPV from opening the branch office is negative ( -$106668.08). Thus the branch office should not be opened.
Explanation:
The decision to open the branch office will be taken based on the NPV provided by opening of the branch office. If the NPV of a project is positive based on the required rate of return used as a discount rate fro cash flows, the investment is worth undertaking.
The net present value (NPV) for a project can be calculated as,
NPV = CF1 / (1+r) + CF2 / (1+r)² + ... + CFn / (1+r)^n - Initial Outlay
Where,
- r is the appropriate discount rate
- Initial Outlay is the Initial cost of the project
- CF represents cash flows from the project
As the required return is 16%, we will take this as the appropriate discount rate.
NPV = 45000 / (1+0.16) + 120000 / (1+0.16)² + 150000 / (1+0.16)³ +
150000 / (1+0.16)^4 + 150000 / (1+0.16)^5 - 485000
NPV = - $106668.08
As the NPV from project is negative at a required return of 16%, the project should not be under taken and the branch office should not be open.
1. (a) Record a liability
2. (a) Record a liability
3. (b) Disclose in notes
<h3>What happens if you fail to record a liability?</h3>
Frequently, failing to register a responsibility entails also neglecting to record an expense. Income is decreased by expenses; but, in this case, this wasn't documented so that net income wouldn't be impacted when it should have been. The net income will be overstated as a result.
<h3>On a balance sheet, how do you record liabilities?</h3>
Unearned income or a "payables" account is normally where liabilities are recorded. In most cases, unless they are regarded as contra liabilities, they have a credit balance. As a result of discounting or lowering the amount owed, this kind of liability has a negative balance.
To know more about record a liability visit:
brainly.com/question/14266222
#SPJ4
Answer:
E. The demand for loanable funds increases.
Answer:
Option B,
The higher the degree of financial leverage employed by a firm, THE HIGHER THE PROBABILITY THAT THE FIRM WILL ENCOUNTER FINANCIAL DISTRESS.
Explanation:
The degree of financial leverage (DFL) is a leverage ratio that measures the sensitivity of a company's earnings per share to fluctuations in it's operating income, as a result of changes in its capital structure.
This ratio indicates that the higher the degree of financial leverage, the more volatile earnings will be.
The use of financial leverage varies greatly by industry and by the business sector. There are many industry sectors in which companies operate with a high degree of financial leverage (examples are retail stores, grocery store, banking institutions, airlines...). Unfortunately, the excessive use of financial leverage by many companies in this sector has played a major role in forcing a lot of them to file for bankruptcy.
Therefore, if the degree of financial leverage employed by a firm is high, then the probability that the firm will encounter financial distress will also be high.
