Answer:
$1,081,434
Explanation:
<em>At indifference point, the present value of cash outflow equals present value of cash inflow.</em>
Present value of cash inflow = Annual cash inflow * PV annuity factor (12%, 5 years)
Present value of cash inflow = $300,000*3.60478
Present value of cash inflow = $1,081,434
So, the amount at which the firm would be indifferent between accepting or rejecting the investment is $1,081,434.
Answer:
The answer to this question is option C Real Business Cycle theory
Explanation:
The Real business cycle theory is the theory that views hocks to tastes (workers' willingness to work, for example) and technology (productivity) as the major driving forces behind short-run fluctuations in the business cycle because these shocks lead to substantial short-run fluctuations in the natural rate of output.
Real business cycle models state that macroeconomic fluctuations in the economy can be largely explained by technological shocks and changes in productivity. These changes in technological growth affect the decisions of firms on investment and workers (labour supply)
Hence the answer is option C Real Business Cycle theory
Biological control is a bioeffector-method of controlling pests such as insects, mites, weeds and plant diseases, using other living organisms.
Biological pest control relies on natural mechanisms including predation, parasitism, or herbivory, but typically also <span>involves an active human management role.</span>
Answer:
$9,542
Explanation:
A loan is amortized by the equal annual payment, each payment is sum of the two payment made against the principal and interest for the period on due balance.
The Equal Payment of $15,142 includes the payment of interest for the period and Principal.
The Principal Payment is the net of Payment made and Interest expenses in the period.
Principal portion = $15,142 - $5,600 = $9,542
The principal will be reduced by $9,542.
