Answer:
C) 4.2 years
Explanation:
The computation of the payback period is as follows;
As we know that
Payback Period = Initial cost ÷ Annual net cash flow
Here
Initial cost = $278000
Annual net cash flow = Incremental after tax + Depreciation per year
where,
Depreciation per year = (Original cost - Salvage value) ÷ Estimated Life
= ($278,000 - $30,000) ÷ 8 years
= $31,000
Annual net cash flow is
= $35000 + $31000
= $66000
So,
Payback Period is
= $278000 ÷ $66000
= 4.2 Years
Answer:
The correct answer is the option A: managers act in their own best interest and the decision in in the long-term.
Explanation:
To begin with, a <em>transfer-pricing</em> is a method used in the companies in order to achieve a sale from a product between one subsidiary to another within a company and is commonly used in situations where the subsidiaries of a parent company are measured as separate profit centers. And regarding the price, the manager of the subsidiary treats it the same way as it would be a sale of a product outside of the company. That is why that this method leads to the goal when the managers act in their own best interest.
As the middle and lower classes reduced income their response to their demand will be reduced. Household spending will be affected.
<h3>What is middle class income.</h3>
Middle class income earners are the people with income or salary that is more than their spending. Their earning is doubling the average spending of their household.
Therefore, a decline in middle and lower classes reduced income will reduce the household spending.
Learn more on income here,
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Looking at the relationship between elasticity and total revenue, we can say that the option that is right to chose is
<em>e. None of the above</em>
Explanation:
Relationship between elasticity of the product revenue and the good price is so that there are a lot of variables to determine its effect on the total revenue of that said product.
This can be the demand supply change as well as the demand cost and the production cost of the production that must be taken into account before we begin to find a relation between their elasticity.
This makes them more vulnerable to change and thus leaves little chance to determine a relation,