Answer:
option (b) 4 years
Explanation:
Data provided in the question:
Cost of the new machine = $380,000
Annual cash flow = $95,000
Rate of return = 6% = 0.06
The present value factor = 4.212
Now,
The cash payback period for this investment
= [ Amount invested ] ÷ [ Annual Net cash flow]
= $380,000 ÷ $95,000 per year
= 4 years
Hence,
The answer is option (b) 4 years
Answer:
This is the result of law of demand and elasticity of demand
Explanation:
The law of demand states that, other things remaining equal, the higher the price of a commodity, the lower the quantity demand of that commodity. Also, the observed goods in the question is a normal good because all normal goods obey the law of demand.
In addition, the price elasticity of demand is ELASTIC. This means the good is sensitive to price. A 1% increase in price will lead to a significant decrease in quantity demanded.
Also the income elasticity of demand is negative, meaning an increase income means the quantity demanded will decrease. This usually happens for inferior goods.
All these three points can cause it
Answer:
The best for long-term health of the company and society is maximize the shareholder wealth.
Explanation:
'Shareholder wealth' means the market price of common stock of a firm. The goal to maximize the shareholder wealth means that management should try to make the current value of the returns as maximum that are expected in future, for the shareholders of the firm.
'Market value' means the value at which the stock trades in the market, like what is its price in 'New York Stock Exchange' is its market value. So, out of the given goals, to maintain a good health of company for a long time, it should maximize the shareholder wealth.
The payback period for the x-ray machine equals 6 years.
<h3>What is a
payback period?</h3>
This means the period of time it will takes a firm to recover the cost of an investment.
<u>Given data</u>
Costs = $24,000
Useful life = 10 years
Reduce operating costs by $4,000
Payback period = $24,000 / 4000
Payback period = 6 years
Therefore, the payback period for the x-ray machine equals 6 years.
Read more about payback period
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Answer:
A budget is a total amount, while a standard expresses only a unit amount.
Explanation: