Answer:
d. 38
Explanation:
This is an Annuity Due type of question. You get the hint from the statement "....$5,000 at the <u>beginning</u> of each month," In an Annuity due , the recurring payments occur at the beginning of the period i.e annually, quarterly or (monthly in this case)
So using a financial calculator on "BGN" mode
nominal rate of 18% is the I/Y. However, since it is monthly compounded, convert it to a monthly rate.
I/Y = 18%/12 = 1.5%
PMT; recurring cashflow = -5,000
FV; future value = 250,000
PV ;present value = 0 (note: in annuity, use 0 for the variable not given)
then CPT N = 37.16
Therefore, it will take approximately 38 months
Answer:
Winston took a very good decision.
Explanation:
If Winston is making economic profit then the decision is good
Economic profit=Total revenue-implicit cost - explicit costs
where,
implicit cost= opportunity cost of best alternative and explicit cost is accounting costs
=150000-(60000+4000)-8000
=78.000
The economic profit is positive, a good indicator that Winston took a good decision.
Answer:
Shift to right
increase
increase.
Explanation:
Demand curve:- It is a representation of number of units of a service will be bought at which price. It is a graph or plot between price and quantity.price on y-axis and quantity on x-axis.
To bring the equilibrium the the demand curve is needed to shift to right to increase the equilibrium of the price and quantity.
Answer:
a. A man should install the light because the expected benefit of $50,000 is greater than the cost.
Explanation:
Let’s consider the cost required to install traffic lights= $10000
The expected benefit is equal to the value of human life * 0.5%.
= 0.5% * $10 million= $ 50000.
The best option is to consider the most beneficial option to be taken. It is clear that installing traffic lights is more advantageous because the expected benefit of $50000 exceeds the cost of installing traffic lights.
Answer:
If I were an advisor at the alternative energy summit I would support investing in <u>solar energy.
</u>
Explanation:
The reasons are various:
- The cost of implementation is much cheaper than that of wind turbines or hydrogenerators, which is why it is more economically profitable.
- It can be implemented in any area of the world or in any place where you find sunlight (such as areas of the Middle East), regardless of the hours of daily sunlight (The sun is an inexhaustible source of energy).
- It is a clean energy, since it produces energy without expense or damage to nature.
- In addition to this, the useful life of photovoltaic panels is 20 years, a fairly long time with respect to the amount of energy generated.