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3 years ago

What are the weak points of economic costs that are part of a free enterprise economy?

Business

2 answers:

svlad2 [7]3 years ago

7 0

Answer:

competition is allowed to flourish with a minimum of government interference.

Yha I know its short.

Zielflug [23.3K]3 years ago

3 0

The Definition of free enterprise would be competition is allowed to flourish with a minimum of government interference.

So the weak points or cons of this economy would be

the risk when creating a new product, profit is also a risk. Business owners don't know if their product will be a success or a fail. (Efficiency at a Cost)

- inflation. This is the biggest danger of economic growth. When the demand outgrows supply, it sets the scene for companies raising prices. This sort of disparity can have a very bad chain reaction (Economic Growth Rates)

Hope this helped.

Cody

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Problem 6-3 Future Value and Multiple Cash Flows [LO1] Fuente, Inc., has identified an investment project with the following cas

Vikki [24]

Answer:

Year 1 = $1,100

Year 2 = $1,330

Year 3 = $1,550

Year 4 = $2,290

(a) If the discount rate is 6 percent, then the future value of these cash flows in Year 4:

To solve this problem, we must find the FV of each cash flow and add them. To find the FV of a lump sum, we use:

$FV=P(1+r)^{t}$

$FV=1,100(1.06)^{3} +1,330(1.06)^{2} +1,550(1.06)+2,290$

= $6737.51

(b) If the discount rate is 14 percent, then the future value of these cash flows in Year 4:

$FV=1,100(1.14)^{3} +1,330(1.14)^{2} +1,550(1.14)+2,290$

= $7415.17

(c) If the discount rate is 21 percent, then the future value of these cash flows in Year 4:

$FV=1,100(1.21)^{3} +1,330(1.21)^{2} +1,550(1.21)+2,290$

= $8061.47

8 0

3 years ago

Your local coffee shop has announced new hours of operation. Previously: 7 am – 4 pm Monday thru Friday and 7am to Noon Saturday

Jet001 [13]

Your answer might be C , the pay has to be increased cause the hours increased,cant be b because the weekly payrool cant be same,ya feel?

5 0

3 years ago

Ariel wants to compare the salaries for positions she was offered at two companies. What should she consider in this process?

german

Answer:

She should research the cost of living of different locations to compare against the offered salaries.
She should research the benefits included in each offer.

She should research the average salary of similar positions to see if the offers are fair.

Explanation:

Remember, the cost living at the different locations is good basis to determine how much the actual value of he salary will be worth. For instance if location A pays her $5000 a month and her living expenses from the location takes about $4500, while location B pays her $3500 a month with a living expense of $1000, then she rather goes for location B she has more extra income.

Secondly, the benefits included in salaries is also to be considered. Does it includes medical insurance, transport allowance etc.?

Third the average industry pay level would also help Ariel know whether to accept any of the offers or not.

8 0

3 years ago

Read 2 more answers

Silver Co. has a $400 petty cash fund. At the end of the first month the accumulated receipts represent $63 for delivery expense

lutik1710 [3]

Answer:

Credit to cash for $302

Explanation:

Account Titles and Explanation Debit Credit

Delivery expenses $63

Miscellaneous inventory $207

Miscellaneous expense $32

Cash $302

(To record petty cash reimbursement)

3 0

3 years ago

Tulloch Manufacturing has a target debt–equity ratio of .64. Its cost of equity is 14.6 percent, and its pretax cost of debt is

malfutka [58]

Answer:

The company’s WACC is 11.38%

Explanation:

After tax cost of debt = 9.6*(1 - 0.34)

= 6.336%

Debt-equity ratio = Debt/Equity

debt = 0.64*Equity

Let equity be $x

debt = $0.64x

Total = $1.64x

WACC = Respective costs*Respective weights

= (6.336*0.64x/1.64x) + (14.6/1.64x)

= 11.38%

Therefore, The company’s WACC is 11.38%

3 0

3 years ago