Answer:High purchasing power
Explanation:High purchasing power is the financial ability to buy products and services.
Purchasing power is the value of a currency expressed in terms of the amount of goods or services that one unit of money can buy. Purchasing power is important because, all else being equal, inflation decreases the amount of goods or services you would be able to purchase.
The costs of goods and services are among the most important determinants of purchasing power. When the price level rises, purchasing power decreases, and when the price level falls, purchasing power increases, if all other factors are held equal.
Answer:
B. people respond to economic incentives.
Explanation:
Economic incentive is material given by someone, that is capable of motivating the other person to behave or act in a certain way. If economic incentives come from a government, it can be in form of tax incentives, subsidies or any monetary gift in form of cash or near cash.
To the economist, human being being rational, will respond to economic incentives in various forms.
Answer: $3,719,548.95
Explanation:
As the amount will be an equal amount each year, it is an annuity. The lump sum to be paid in 6 years growing at 5% would be the present value of this annuity.
The payment will be;
FV = Payment * Future value interest factor of annuity, 6 years, 5%
25,300,000 = Payment * 6.8019
Payment = 25,300,000/6.8019
Payment = $3,719,548.95
<u>Experimental research</u> <span>involves a type of quantitative research that systematically manipulates one or more variables to determine which variables have a causal effect on other variables.
This way, you determine whether your hypothesis was correct, by conducting an experiment to test your thesis. You change things up to see if you were right or wrong during an experimental research.</span>
Answer:
-$4,889.94
Explanation:
The computation of the net present value is shown below:
Net present value = Present value after considering the depreciation and discounting factor - initial investment
where
Present value is
= After-tax net income + Depreciation expense
= $1,700 + $15,000
= $16,700
And its discounting factor is 2.4018
So, the present value is
= $16,700 × 2.4018
= $40,110.06
And, the initial investment is $45,000
So, the net present value is
= $40,110.06 - $45,000
= -$4,889.94
