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4 years ago

If a society decides to produce consumer goods from its available resources, it is answering the basic economic question,

Business

1 answer:

dexar [7]4 years ago

6 0

Answer:

What to produce?

Explanation:

What to produce?

Due to the fact that resources are scarce, a producer has to decide what he wants to produce.

In the question above, the consumer has decided to produce consumer goods.

How to produce?

The producer has to decide on the optimal production method to employ. It has to decide whether a labour or technology intensive production method would be better .

For whom to produce?

A producer has to answer this question in order to be able tailor his product to perfectly suit his target customers. The producer has to decide if to produce for young people, middle aged people or the elderly or sell to the poor or rich.

I hope my answer helps you

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3 years ago

CrochetCo is considering an investment in a project which would require an initial outlay of $350,000 and produce expected cash

Lelu [443]

Answer:

Ans. A) NPV= -$9306

Explanation:

Hi, the first thing we need to do is to find the after-tax cost of the firm's capital, and since all capital sources are expressed in terms of after-tax percentage, we just multiply each proportion of capital by its costs, I mean

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The answer to this is 12.40%.

Now, we can find the net present value of this project by using the following formula.

$NPV=-InitialOutlay+\frac{CashFlow((1+Cost of Capital)^{n} -1)}{Cost of Capital(1+Cost of Capital)^{n}}$

$NPV=-350,000+\frac{95,450((1+0.124)^{5} -1)}{0.124(1+0.124)^{5}} =-9,306.5$

Since the expected cash flow takes place 5 times form year 1 to 5, and is equal to $95,450, "n" is equals to 5 and "CashFlow" is equal to $95,450.

Therefore, the NPV of this project is -$9,306, which is answer A)

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3 years ago

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3 years ago

The required return on the stock of Moe's Pizza is 12.2 percent and after tax required return on the company's debt is 3.82 perc

GalinKa [24]

Answer:

WACC 7.71894%

Explanation:

$WACC = K_e(\frac{E}{E+D}) + K_d(1-t)(\frac{D}{E+D})$

Ke = 0.101

ER = 0.72

Kd = 0.0382

DR = 0.18

t = 0.35

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3 years ago

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3 years ago