Answer: Trade creation
Explanation:
Trade creation is the increase in economic welfare which occurs when a country joins a free trade area, like the customs union. Trade creation will happen when the ltariff barriers has been reduced which leads to lower prices.
Trade creation leads to lower cost on producers which will lead to a rise in economic welfare and consumer surplus. Trade creation also leads to expansion of trade.
Project evaluation from the <u>local</u> viewpoint serves some useful purposes and/but should <u>be </u><u>subordinated</u><u> to</u> the <u>parent's</u> viewpoint.
Project evaluation is the process of measuring the success of a project, program or a portfolio. The project evaluation process has been around as long as projects themselves.
In a project, every aspect of the project such as risks, costs, scope, or return on investment (ROI) is measured in order to determine if it’s proceeding as planned. Thus, it should be subordinated to the parent's viewpoint.
Hence, it requires the evaluator to gather important information to analyze the process and outcome of a certain project.
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Answer:
Future value
Explanation:
The name for computation that allows you to determine how much money to deposit now to earn a desired amount in the future is "Future value." Future value is the equivalent of an asset at a particular date. It estimates specific nominal future sum of cash that an invested sum of money is "worth" at a stipulated period in the future considering a specific interest rate, or more commonly, rate of interest; it is the immediate price multiplied by the aggregation function.
Answer:
$5,641
Explanation:
DEPOSIT NOW
$1000 * FVIF 9%,8 PERIODS
= $1000 * 1.9926
= $1992.6
IN 2 YEARS
= $2000 * FVIF 9%,6 PERIODS
= $2000 * 1.6771
= $3354.20
IN 5 YEARS
= $8000 * FVIF 9%, 3 PERIODS
= $8000*1.2950
= $10360
WITHDRAWAL: IN 3 YEARS
= ($3000) * FVIF 9%, 5 PERIODS
= ($3000) * 1.5386
= ($4615.80)
IN 7 YEARS
= ($5000) * FVIF 9%, 1 PERIOD
= ($5000) * 1.0900
= ($5450)
Total value = $1992.6 + $3354.20 + $10360 - $4615.80 - $5450
Total value = $5,641
So, the total future value after eight years is $5,641
The answer is net income
Net income is the amount of capital that the Company's made during an operational year after all relevant expenses have already been deducted.
Some amount of the net income will be shared to shareholders according to the percentage, and some of it will be put in company's capital to expand the operation.
