Answer:
Need to accommodate the growth of key customer is the correct answer.
Explanation:
Answer:
If the interest rate is 12% and the cash flow in year 1 is 500 and 800 in year 3 we will discount these 2 payments buy 12% and if the present value of these 2 payments is more than 900 than the investment is worthy
500/1.12=446.42+
800/1.12^3= 569.42
==1015.85
The present values of the cash flow (1015.85) are more than the initial investment (900) therefore the publisher should invest.
If the interest rate is 25% and the cash flows are 500 in year 1 and 800 in year 2 we need to discount these by 25% and see if the present value of the cash flows are more or less than 900 which is the initial investment.
500/1.25=400+
800/1.25^=512
=912
912 is the present value of cash flows which is more than the initial investment of 900 therefore the investment would have taken place.
Explanation:
A country that has an absolute advantage in producing corn does not necessarily have a comparative advantage in producing corn - this statement is true.
<h3>What are absolute advantages and comparative advantages?</h3>
Comparative advantage exists when a country produces a good or service for a more subordinate opportunity cost than other countries. Opportunity cost estimates a trade-off. A nation with a comparative benefit creates the trade-off worth it. Absolute advantage is an economic concept that exists utilized to refer to a party’s superior production capability. Specifically, it directs to the ability to produce a particular good or service at a lower cost.
Comparative advantage exists concerned with producing at a lower opportunity cost Having absolute advantage doesn’t necessarily indicate an economy should produce that good. It is not advisable to try and produce everything. Absolute Advantage: The ability of an actor to produce better of a good or service than a competitor. Comparative Advantage: The capability of an actor to produce a good or service for a lower opportunity cost than a competitor.
To learn more about absolute advantages refer to:
brainly.com/question/8141905
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