Answer:
Explanation:
When making a decision, irrelevant items are included in the analysis in both alternatives when using: the total cost approach only.
Answer:
The correct answer is letter "C": Different choices about the right simplifications to use in economic analysis.
Explanation:
Economic Analysis refers to the study of economic situations within a region using different tools for that purpose that will let determine what the possible solutions and consequences of taking decisions of those situations could be. That is why in the case the two economists after analyzing the effects of the tax reform bill decided not to implement it.
Answer:
Invest. Cash Flow Payback
-$1,675 $570 2,94
-$3,275 $570 5,75
-$4,800 $570 8,42
Explanation:
The payback period method gives the total time necessary to get back the money invested in a project considering the each year cash flows.
As here the Cash flow are the same each year only it's necessary to divide de amount invested by the annual cash flow expected.
Invest. Cash Flow Payback
-$1,675 $570 2,94 = $1,675/$570
-$3,275 $570 5,75
= $3,275/$570
-$4,800 $570 8,42
= $4,800/$570