An investment project provides cash inflows of $615 per year for eight years. a. What is the project payback period if the initi
1 answer:
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Answer:
The best overall price will be the bank offer because the cash disbursement are lower. Zara is looking for the cheapest overall price, which means the less cash disbursement regardless of the interest.
Explanation:
For the dealer option we need to calculate the cuota for an annuity of 66 month at 1.9% rate which a present value of 24,145 - 4,000 = 20,145
The cuota for the dealer will be 321.69447 = 321.69
321.69 x 66 = 21231.54 overall cash price
Bank couta will be the annuity of 48 months at 3.50%
here we are using the cash rebate so 24,145 - 4,000 - 750 = 19,395
Cuota from the Bank 431.01181 = 431.01
431.01 x 48 = 20688.48 overall cash price
Answer:
The correct answer is option A.
Explanation:
The demand for cantaloupes is unitary elastic at price level $2.50. The demand curve here is linear and downward sloping. The elasticity of demand is 1.
In this linear demand curve the lower portion will represent inelastic demand.
When the price level is reduced to $2 the demand will move to the lower portion of the curve, with fall in price and increase in demand.
So, at $2 price the demand will be inelastic, which means it will be between 0 and 1.
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