Answer:
entire initial investment will not be recovered.
Explanation:
Payback period is one of the methods used in capital budgeting.
Payback period calculates how long it takes for the amount invested in a project to be recovered from its cummulative cash flows.
For example, if a project costs $360 and the cash flow each year for its 6 years useful life is $120. The amount invested would be gotten back from the cummulative cash flow in 3 years.
But if a project costs $360 and the cash flow each year for its 2 years useful life is $120. The amount invested would never be gotten back the cummulative cash flow. Therefore, the entire investment amount will never be entirely recovered.
The project will always not be profitable
I hope my answer helps you.
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The U.S. central banking system—the Fed, or the Federal reserve—is the foremost powerful economic establishment within the us, maybe the planet. Its core responsibilities embody setting interest rates, managing the cash offer, and control financial markets.
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Kings held all the power within their states' boundaries
The change in equilibrium output 120.
The equilibrium output is the factor wherein deliberate mixture expenditure is identical to national profits output. The equilibrium price is the factor in which the value of a product and the call for that product intersect, developing a rate compromise. on the equilibrium fee, there may be a balance between customers shopping for the product and agencies presenting the product.
I the call for and deliver change within the equal direction, the change inside the equilibrium output may be decided, however the change in the equilibrium price cannot. a. If both call for and deliver an increase, there could be an increase within the equilibrium output, however, the effect on rate cannot be decided.
investment increases by 60
c = 50.50dy
dy = (1/1-mpc) dI where, dI =change in investment
∴ dy = (1 / 1 - 0.5)*60 dy = change in equilibrium output
= 2 * 60 Mpc = 0.5
= 120
Hence, the equilibrium output is 120.
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