Answer:
A) the discounted payback period decreases as the discount rate increases
Explanation:
The discounted payback period is used to determine the profitability of an investment project.
A not discounted payback period is how long does it take for the cash flows of a project to recoup the investment's cost without considering the value of money in time. By applying a discount to the cash flows, the discounted period will more accurately measure the length of time needed to recoup an investment using current dollars.
The higher the discount rate, the longer it will take for the cash flows to cover the investment's cost, so if the discount rate lowers, then the discounted payback period will be shorter.
The most efficient way to share digital files within a home environment is to set up a(n) home network.
Answer:
B. $6000
Explanation:
Given that
Price = $9
Average total cost (ATC) = $7
Output (Q) = 3000
Two methods can be used in calculating profit in this case.
The first method is
Profit = (price - ATC) × Q
= (9 - 7) × 3000
= 2 × 3000
= $ 6000
The second method is
Profit = Total revenue (TR) - Total Cost (TC)
Where TR = Price × Q = 9 × 3000 = $27000
TC = ATC × Q = 7 × 3000 = $ 21000
Therefore,
Profit = 27000 - 21000
= $6000
Any method used will result to the same answer.
NOTE THAT,
ATC = Total cost / Q.
So change of formula was used to obtain Total cost from this formula.
Answer:
a. AD curve will shift to the right
b. AD curve will shift to the left
c. Movement along the AD curve.
Explanation:
a. When firms become more optimistic and increase their spending on machineries,this brings about changes in investment and it will cause a shift to the right in the aggregate demand curve.
b. When The federal government increases taxes in an attempt to reduce a budget deficit. This will cause a change in consumption as people will have less money to spend since disposable income has been reduced, and it will cause the aggregate demand curve to shift inwards to the left.
c. A 4 percent in US inflation will bring about a change in price level and there will be a movement along the aggregate demand curve.
