Answer:
NPV = 138,347.55
Explanation:
<em>Net Present Value (NPV) : This is one of the techniques available to evaluate the feasibility of an investment project. The NPV of a project is the difference between the present value of the cash inflows and the cash outflows of the project.</em>
We sahall compute theNPV of this project by discounting the appropriate cash flows as follows:
<em>Prevent Value of operating cash flow</em>
PV =A× (1- (1+r)^(-n))/r
A- 23,900, r - 12%, n- 5
PV = $23,900 × (1- (1.12)^(-5))/0.05
=206,769.963
<em>PV of Working Capital recouped</em>
PV = 5600× 1.12^(-5)
= 3,177.59
NPV = initial cost + working capital + Present Value of working capital recouped + PV of operating cash inflow
NPV = (66,000) + (5600) + 3,177.59 + 206,769.96
NPV = 138,347.55
D) They pay for specific social programs rather than general government activities.
Answer:
decreases
increases
Explanation:
Nominal interest rate is real interest rate plus inflation rate. If nominal interest rate rises, people would prefer to save their money and so the demand for money would fall.
Real income is income adjusted for price level changes. The higher the real income,the higher the purchasing power, the higher the demand for money.
Answer:
C) Output fall and prices rise
Explanation:
In an aggregate supply, aggregate demand model, price level is the Y axis, and output is the X axis. Supply is positively related with price: the higher the price, the more firms produce.
However, to produce someting, firms need to employ the factors of production: land, labor and capital. The wages firms pay to workers, and the rent firms pay for land and capital are the production costs. If these costs rise, then, the products will become more expensive.
This increase in price will be met with lower demand; less customers will be willing to purchase the product, and therefore, the firms will start producing less until reaching a new equilibrium.
Answer:
An agency relationship
Explanation:
An agency relationship is one in which a party follows up for the benefit of and with the authority of another party. The head of a firm or organisation names or approves a specialist to follow up for the company benefit. Subsequently, she is answerable for the moves of the operator made in encouragement of her obligations or per the guidelines of the head. The specialist will connect with the third party on behalf of the company.
