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3 years ago

If I told you that income elasticity in the market for hybrid cars is positive, you would know that:

1 answer:

7 0

The best and most correct answer among the choices provided by your question is the second choice or letter B.

If I told you that income elasticity in the market for hybrid cars is positive, you would know that: <span>there are few substitutes for hybrid cars. </span>

I hope my answer has come to your help. Thank you for posting your question here in Brainly. We hope to answer more of your questions and inquiries soon. Have a nice day ahead!

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20. WACC and NPV [LO3, 5] Sommer, Inc., is considering a project that will result

g100num [7]

Mark Brainliest please

Sommer Inc is considering the new project, and yet we have to calculate under what circumstances the company have to take on the project. In order to assess the project, we need to compute the break-even cost such as the present value of future cash flows and calculate the WACC weighted cost of capital. It measures the weighted cost of equity and the after tax cost of debt. The following information are given: Debt to equity ratio = 0.90 Cost of equity = 13% After-tax cost of debt = 4.8% After-tax cost of savings = $2.7 million Debt to equity ratio = Debt / Equity = 0.90 Therefore, Value of firm = value of debt + value of equity Value of firm = 0.90E + E Value of firm

See the calculation of WACC as attachment

8 0

3 years ago

You just deposited $2,500 in a bank account that pays a 4.0% nominal interest rate, compounded quarterly. If you also add anothe

choli [55]

Answer:

The value of the investment would be $16,035.87 in 12 quarters from now

Explanation:

The value of $2,500 after four quarters can be determined with the below formula:

FV=PV*(1+r/t)^N*t

FV is the future value of the investment, the unknown

PV, the present value of the investment is the amount invested.

r is the rate of return of 4%

t is the number of times interest is paid annually,4 times in this case

After the first four quarters, the worth of the investment is shown thus:

FV=$2500*(1+4%/4)^1*4

FV=$2500*(1+1%)^4

FV=$2,601.51

After that $5000 was added to $2,601.51 making $7,601.51 which was reinvested to yield the below:

FV=$7,601.51*(1+ in 4%/4)^1*4

FV=$7,601.51*(1+1%)^4

FV=$7910.16

Then $7,500 was added to $7,910.16 which turns $15,410.16

FV=$15,410.16*(1+4%/4)^1*4

FV=$15,410.16*(1+1%)^4

FV=$16,035.87

4 0

3 years ago

Why is it difficult for some people to save money?

sammy [17]

If they have alot of money then it might be hard for them to save because they have enough or if they dont have alot of money then they just wanna have alot of items i do that sometimes☺

8 0

4 years ago

Below is a demand curve for DVDs for a monopoly currently producing at point

Finger [1]

The decrease is a simple 2 dollars that is easy to find out. The demand is decreasing, as is the price to keep the demand atleast a bit steady. The decrease is a 12.5% of the total cash recieved.

4 0

4 years ago

Read 2 more answers

An increase in interest ratesA. increases investment spending on machinery, equipment, factories, consumption spending on dura

RoseWind [281]

Answer:

The correct answer is option C.

Explanation:

An increase in the interest makes it more expensive to borrow money. In other words, the cost of borrowing increases. This will cause investment expenditure on machinery, equipment, and factories to decline.

Increased interest rate also increases the opportunity cost of holding money. The consumers will get more return from saving. This will reduce, the consumer spending on durable goods.

The increased interest rate will attract foreign capital inflows. The increase in demand for currency will increase its value. This will reduce exports and increase imports. As a result, net exports will decline.

8 0

3 years ago