The comparison of the actual results of capital investments to the projected results is referred to as post-audit.
The payback method determines how long it will take for the company to recoup its investment. Annual cash flows are compared to the initial investment, but the time value of money is not considered and cash flows beyond the payback period are ignored.
Companies apply the time value of money in a variety of ways to make yes or no decisions about investment projects and between competing projects. Two of the most common methods are net present value and internal rate of return (IRR).
The minimum return on the capital investment required by management is called the return on investment. The collection method considers cash flows that occur both during and after the collection period.
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<span>
<span>In
investment, the term risk can be defined as the possibility of the investor
losing all or part of their capital in a given venture. High quality bonds
are considered lower risk because the the investor is promised to receive
face value after a certain period unlike stocks that do not carry the same
promise. Returns on high quality bonds are also guaranteed in the form of
fixed interest rates whereas in stocks, a company may pay dividends but this
is not an obligation on their part. Lastly bonds are safer investment as they
are less susceptible to abnormal price changes unlike stocks whose prices can
easily swing in either direction.</span></span>
Of the following, the best criticism of the argument above is that it overlooks the possibility that certain factors operating in the 1980’s but not in the 1970’s diminished people’s incentive to save and invest.
<span>If these other factors, unrelated to the inflation rate, that operated in the 1980’s but not the 1970’s, created an even greater disincentive to savings and investment than high inflation rates provide, then those trends do not provide evidence about the general relationship among savings, investment, and inflation. </span>
Answer:
The correct answer is b. will go primarily to consumers.
Explanation:
Inelastic demand is that demand that is not very sensitive to a change in price. In this way, before a variation in the price the quantity demanded reacts in a less than proportional way. For example, if the price increases by 10% and in response the quantity demanded is reduced by less than 10%, then the demand is said to be inelastic.
While the elasticity of the offer presents the degree of response of the quantities offered to variations in the price of the good considered, the price of other goods, the costs of productive factors or business expectations.
Answer:
Explanation:
a) in times of stagnation. b) in fast-changing industries.
