All categories

4 years ago

Identify whether the statements below are true or false by dragging and dropping the appropriate term into the bin provided.

Business

1 answer:

Tema [17]4 years ago

7 0

Solution and Explanation:

1. False- Long run Economic growth is likely to be sustainable because of finite natural resources as othe man made resources will be available to sustain growth.

2. False- In mordern economy posesing few natural resources will not affect a country to develop economically; human resources and man made resources will also contribute. Foreign trade can also play an important role towards growth, in the absence of abundant natural resources.

3. True- Natural resources are vital, and mostly exhaustible. Hence it is very essential to find suitable alternatives.

4. False- Economies of 21st century depend on human capital due to depletable atural resources.

5. True - In the 19th century, minerals and farming land were the most mportant resources, since self sustainability was in vogue.

You might be interested in

Are indigenious and traditional technology the same

Nataliya [291]

Answer:

Mark me as a Brainliest

Explanation:

The modern technology using the national resources, whereas the indigenous technology uses alternate material. For example instead of using coal and lime from factory if you use charcoal and seashell mortar for housing construction.

3 0

3 years ago

The demand for a product is inelastic with respond to price if: a.consumers are

Step2247 [10]

Not all of the answer choices are here

5 0

3 years ago

The accompanying list describes the responses of four individuals to a bureau of labor statistics (bls) survey of employment. 1.

kramer

Frictional unemployment is the unemployment that fallouts from period consumed between jobs when an employee is looking for, or moving from one occupation to another. It is otherwise known as search unemployment and can be grounded on the conditions of the individual. So the answer is letter a, Mollie is the frictionally unemployed since she is looking for a job for 3 months already. She is searching and waiting for a job.

7 0

3 years ago

Share one or two specific examples of how you will use the concepts or strategies presented in this class to contribute to your

rosijanka [135]

Answer:

Explanation:

e concepts or strategies presented in this class

4 0

3 years ago

How Country Risk Affects NPV. Hoosier, Inc., is planning a project in the United Kingdom. It would lease space for one year in a

Murrr4er [49]

Answer:

NPV = $11,525.6

Probability the project has negative NPV: 30%

Explanation:

1. When there is no risk:

It is given that the initial British corporate tax rate on income earned by US firms is 40%.

The initial investment: $200,000

The cash flow of Hoosier can be described as following:

+) The addition to the cash flow includes:

Pretax earnings: £300,000

+) The subtraction to the cash flow includes:

Tax on income (40%): £300,000 x 40% = £120,000

=> The cash flow = 300,000 - 120,000 = £180,000 = 180,000 x $1,6 = $288,000

=> The Present value of the project after one year is:

PV = Cash flow/ [(1 + required rate of return)^ 1 year]

= 288,000/ (1+0.18) = $244,068

=> The Net Project Value is:

NPV1 = ∑PV - Initial investment = 244,068 - 200,000 = $44,068

2. Case 2: The British economy may weaken

The initial British corporate tax rate on income earned by US firms is 40%.

The initial investment: $200,000

The cash flow of Hoosier can be described as following:

+) The addition to the cash flow includes:

Pretax earnings: £200,000

+) The subtraction to the cash flow includes:

Tax on income (40%): £200,000 x 40% = £80,000

=> The cash flow = 200,000 - 80,000 = £120,000 = 120,000 x $1,6 = $192,000

=> The Present value of the project after one year is:

PV = Cash flow/ [(1 + required rate of return)^ 1 year]

= 192,000/ (1+0.18) = $162,712

=> The Net Project Value is:

NPV 2= ∑PV - Initial investment = 162,712 - 200,000 = -$37,288

3. Case 3: The British corporate tax rate on income earned by U.S. ﬁrms may increase from 40 to 50 percent

British corporate tax rate on income earned by US firms is 50%.

The initial investment: $200,000

The cash flow of Hoosier can be described as following:

+) The addition to the cash flow includes:

Pretax earnings: £300,000

+) The subtraction to the cash flow includes:

Tax on income (50%): £300,000 x 50% = £150,000

=> The cash flow = 300,000 - 150,000 = £150,000 = 150,000 x $1,6 = $240,000

=> The Present value of the project after one year is:

PV = Cash flow/ [(1 + required rate of return)^ 1 year]

= 240,000/ (1+0.18) = $203,390

=> The Net Project Value is:

NPV3= ∑PV - Initial investment = 203,390 - 200,000 = $3,390

The probability of the case there is no risk = 100% - probability of Case 2 - probability of case 3 = 100% - 30% - 20% = 50%

The expected value of the project’s net present value is:

NPV = probability Case 1 x NPV1 + probability Case 2 x NPV2 + probabilityCase 3 x NPV3

= 50% x 44,068 + 30% x (-37,288) + 20% x 3,390= $11,525.6

As only the NPV of case 2 are negative, so that the probability that the project will have a negative NPV = probability case 2 = 30%

4 0

3 years ago