The <span>method of evaluating capital investment proposals that uses the concept of present value to compute a rate of return would be: </span>internal rate of return
the internal rate of return method of evaluation analyze the present value of all cash flows from all investments.
This method is most commonly used to determine whether a potential investment will be profitable or not.
A purchase or an exchange can be understood as economic processes that use monetary or non-monetary funds, and that occur to satisfy certain needs of individuals and organizations.
<h3 /><h3>Buyer Decision Process</h3>
It occurs from a decision on the need to carry out an economic transaction of a good or service that lasts before and after the moment of purchase. There are five steps in the consumer decision process, which help in the purchase action, which are:
- Problem Recognition
- Information Search
- Evaluation of Alternatives
- Purchase Decision
- Post Purchase Behavior
Therefore, there are also other exchange processes, such as coincidence of wants, barter and voluntary exchange, which are processes that take place to benefit both parties in an economic exchange without the use of money.
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Answer:
Year 1 PV = 91,743.12
Year 2 PV =126,251.99
Year 3 PV = 154,436.70
Explanation:
<em>The present value of future sum is the amount that ought to be invested today at interest rate compounded annually to equal the sum at the end of a particular period.</em>
The present value of a future sum is given as follows:
PV = FV × PV (1+r)^(-n)
PV - present value
FV - Future value
r- interest rate
n- number of years
Year 1 PV = 100,000× 1.09^(-1) =91,743.12
Year 2 PV = 150,000× 1.09^(-2) =126,251.99
Year 3 PV = 200,000× 1.09^(-3) = 154,436.70
Answer:
C. the price is below the equilibrium price
Explanation:
Remember, in the law of demand and supply the quantity supplied is dependent on the value of the price of a good.
In this case the price is below the equilibrium price; meaning demand would be higher than the supply which results in the shortage of the good and the company therefore raises the price of the good.
For example, the price of oranges decrease in the equilibrium price (from $10 to $5), resulting in an increase in the demand for oranges.
The increase in demand would lead to shortage, making farmers increase price wanting to supply more.
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