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Ivahew [28]
3 years ago
15

A high marginal propensity to expend will cause the multiplier to be smaller.

Business
1 answer:
lidiya [134]3 years ago
6 0

Answer:

False

Explanation:

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The development cost of a project X is $150,000. The operating costs for year 1, 2 and 3 respectively are $5000, $6000, and $ 70
Sati [7]

Answer:

NPV= $31,808.91

Explanation:

Giving the following information:

Io= -$150,000.

The operating costs:

Year 1= $5,000

Year 2= $6,000

Year 3= $7,000

The benefits:

Year 1= $80,000

Year 2= $90,000

Year 3= $70,000

To calculate the Net Present Value (NPV) we need to use the following formula:

NPV= -Io + ∑[Cf/(1+i)^n]

Cf= cash flow

Io= -150,000

Cf1= 80,000 - 5,000= 75,000/1.04= $72,115.39

Cf2= 90,000 - 6,000= 84,000/1.04^2=$77,662.72

Cf3= 70,000 - 7,000= 63,000/1.04^3= $56,006.77

NPV= $31,808.91

5 0
3 years ago
What is home equity?
shepuryov [24]
Difference between the purchase price of the home and its current market price
3 0
3 years ago
Read 2 more answers
Some laws prohibit discrimination in employment. These laws promote which of the following primary functions of​ law? A. promoti
Nostrana [21]

Answer:

A. promoting social justice

Explanation:

Discrimination in any manner is prohibited at all the public places, and work places are part of such places covered.

There cannot be any discrimination on the grounds of religion, color, gender, or by any other categorization.

In this manner, every individual is treated equally, irrespective of the background he or she belongs too.

This provides a social justice to every individual. In this manner the social status, personality is not hindered.

7 0
3 years ago
Read the following email, which Jim sent to his team. Then choose the answer below that best explains what is wrong with the ema
mars1129 [50]

Answer and Explanation:

The subject of the email is too long and contains all the information. The subject should have been: Proposal draft due on Friday. Rest of the information should have been included in the body of the email.

8 0
3 years ago
Suppose your company needs $16 million to build a new assembly line. Your target debt−equity ratio is .7. The flotation cost for
kumpel [21]

Answer:

7.76%

Explanation:

The computation of the weighted average flotation cost is shown below:

= Weightage of equity × flotation cost for new equity +  Weightage of debt × flotation cost for debt

Since the debt-equity ratio is 0.7 which means the debt value is 7 and the equity value is 10 so the total firm would be 1.70

So, Weighted of debt = (0.7 ÷ 1.70) =0.411

And, the weighted of common stock = (Common stock ÷ total firm)

                                                              = (1) ÷ (1.70)

                                                              = 0.588    

Now put these values to the above formula  

So, the value would equal to

= (0.588 × 9%) + (0.411 × 6%)

= 0.05292% + 0.02466%

= 7.76%

4 0
3 years ago
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