Answer:
A.) Project A only
Explanation:
Given that
For project A
Pay back = 2.9 years
Net present value = $4,200
For project B
Pay back = 3.1 years
Net present value = $26,400
Based on the above information and payback decision rule, The project A should be accepted as it it contain less period compared to the project B i.e 2.9 years to 3.1 years
Hence, the correct option is a.
Neal receives the additional $75,000.
<h3>
What are liabilities?</h3>
- A liability is defined in financial accounting as the future sacrifices of economic benefits that an entity is obligated to make to other entities as a result of past transactions or other past events, the resolution of which may result in the transfer or use of assets, provision of services, or another future yielding of economic benefits.
- A company's assets are what it owns, while its liabilities are what it owes.
- Both are included on a firm's balance sheet, which is a financial statement that demonstrates the financial health of the company.
- Equity, or an owner's net worth, is equal to assets with fewer liabilities
Liability Examples -
- Bank indebtedness Debt from a mortgage.
- Suppliers owe money (accounts payable) Wages are owing.
- Taxes are owing.
- In the given situation Neal was the owner and so it will have the liability of $425,000 and the additional amount of $75,000.
Therefore, Neal receives the additional $75,000.
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Answer:
$939,220
Explanation:
6400000 +12000000 = 18400000
we have to calculate the average interest on the general borrowing
= (10% of 6400000/ 18400000) + (11% of 12000000/18400000)
= 10% x 0.3478 + 11% x 0.65217
= 0.03478 + 0.0717
= 0.10648
= 10.65%
avoidable interest = (amount borrowed x percentage) + (expenditure-amount borrowed) x 10.65%
= 3200000*12% + (8,413,333-3200000)x10.65%
= 384000 + 555219.9
= $939,219.9
≈ $939,220
Answer:
Letter b is correct.<em> A monopolistically competitive firm faces competition from firms producing close substitutes.</em>
Explanation:
<u>Monopolistic competition</u> is an economic situation that occurs when companies exhibit imperfect competition, that is, companies market similar but not identical products, which characterize them as substitute but not perfect substitute products.
Products may have different variables, such as quality, price and reputation in the market. The greater the degree of product differentiation, the more price control the company will have.
The marginal propensity to consume tells us by how much consumption expenditure changes when disposable income changes.
<h3>What is marginal propensity?</h3>
In economics, the marginal propensity to consume (MPC) is defined as the proportion of an aggregate raise in pay that a consumer spends on the consumption of goods and services, as opposed to saving it.
<h3>What is the MPC and MPS?</h3>
Key Takeaways. The marginal propensity to save (MPS) is the portion of each extra dollar of a household's income that's saved. MPC is the portion of each extra dollar of a household's income that is consumed or spent.
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