Answer:
C. 1.75 years.
Explanation:
The payback period is the amount of time required for cash inflows generated by a project to offset its initial cash outflow.
Answer:
If the new reforms bring increase confidence of the investors then the company will have to incur lower borrowing costs as the investor will be available and vice versa.
Explanation:
Suppose that previously our company's credit rating was overrated. Due to recent regulatory reforms, my company achieved a lower credit rating and hence the investor confidence in our company dropped significantly. Now the investor is not interested to invest in my company and to urge them to invest in the company, they will be offered higher interest. If the reforms are going to impact our credit rating adversely then the borrowing cost will increase and vice versa.
Furthermore, Core Principle 3 says that the decsion making of the investor is based on the information that is readily available to him. This means if the reforms increase the access of the borrower through improved credit rating then it will be favourable for the company in terms of lower borrowing costs. If the reforms decrease the access of the borrower through depreciating credit rating then it will adversely affect the company in terms of lower borrowing costs and lower investment access.
Answer:
To be considered as a producer, we need to create some sorts of goods or services and exchange it with the customers in order to obtain some sort of financial gain. I believe that a host who seats customers in a busy restaurant would be considered a producer because he is providing a service to consumers.
Hope this helps!
Answer:
There was lots of market activity, because people could now afford to buy so much more farm products
Explanation:
The evidence with respect to the price of commodity falls could be arise when the corn sold at 10-11 cents after the year 1929. The dropped in the price of the land to approximate $40 per acre also the egg sold as low as 10 cents per dozen
but the lots of market activity could not reflect the evidence of dropping the price of the commodity
So this same should be considered
De Beers is worried that people might resell their previously owned diamonds <u>because previously owned diamonds would be a close substitute to newly mined diamonds and therefore reduce De Beers' market power</u>.
<u>Explanation</u>:
A single company selling the unique product with no competition is known as monopoly. The company is sole seller of the product. The company is free of competition and decides the price of the product with full freedom.
De Beers Company is a monopoly company dealing with diamonds. They were monopoly for long time. In recent days they are facing increasing competition due to resale of diamonds by the previously owned customers. The company’s market power is reduced as the previously owned diamond is close to newly mined diamond.