The price elasticity of the loan taken by the entrepreneur comes out to be 10.
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What is the price elasticity of demand?</h3>
The price elasticity of demand is an indicator used to determine the sensitivity of demanded quantity with respect to its corresponding price.
Given values:
Change in quantity demanded: 50%
Change in price: 5%
Computation of price elasticity of demand:
Therefore, when the change in quantity demanded is 50% with the change in the price is 5%, then the price elasticity of a business loan is equal to 10.
Learn more about the price elasticity in the related link:
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Answer:
Consultation.
Explanation:
In the scenario observed in the question, it can be seen that the dean used the consultation tactic.
This tactic can be defined as the influencing leader seeking support from others to influence a group. This is an effective approach to increase group satisfaction due to the value of democratic decision-making.
The benefits of this technique are described in the question, such as the increased commitment of the faculty, who are now interested in seeing the process succeed and the objective of accreditation fulfilled.
Numerous things are excluded. For example, free of charge services are not counted such as those when family members help each other. In addition, producing things for yourself or others free of charge is also excluded. These are called non-market transactions.
Answer:
year net cash flow
0 -$150,000
1 $80,000
2 $65,000
3 $50,000
4 $40,000
A) NPV = -$150,000 + ($80,000 x .87) + ($65,000 x .756) + ($50,000 x .658) + ($40,000 x .572) = -$150,000 + $69,600 + $49,140 + $32,900 + $22,880 = -$150,000 + $174,520 = $24,520
B) Yes , because the net present value indicates that the return on the proposal is greater than the minimum desired rate of return of 15%. Since the NPV is positive ($24,520), it means that the cash inflows are higher than the cash outflows when we use a 15% discount rate.
