Which of the following would an economist most likely classify as a need?

In markets where customers are sensitive to price and where internal efficiencies lead to cost advantages allowing for acceptabl

Nadusha1986 [10]

Answer:

The correct answer is letter "A": Penetration.

Explanation:

Penetration Pricing means that an initially low price for a new product or service attracts customers away from the competitors. The new company hopes that even if prices rise to normal levels, customers will continue to use their products. Penetration Pricing will yield higher returns on sales and push rivals out of the market if implemented long enough.

3 0

3 years ago

Identify the possessive pronoun in the following sentence: "I love my new computer!"

Vanyuwa [196]

Answer:

A

Explanation:

5 0

3 years ago

Aria Acoustics, Inc. (AAI), projects unit sales for a new seven-octave voice emulation implant as follows:

jeka94

Solution:

NPV is calculated as:

NPV = $\frac{C1}{1+r} +\frac{C1}{(1+r)^{2} } +\frac{C1}{(1+r)^{3} } + ....... + \frac{C1}{(1+r)^{n} } - A$

Initial investment = $16,500,000

Depreciation table:

Recovery Year 7-Year % Depreciation Booked Asset Book

Value at the end of Year

1 14.29 $ 3,029,480 $ 18,170,520

2 24.49 $ 5,191,880 $ 12,978,640

3 17.49 $ 3,707,880 $ 9,270,760

4 12.49 $ 2,647,880 $ 6,622,880

5 8.93 $ 1,893,160 $ 4,729,720

6 8.92 $ 1,891,040 $ 2,838,680

7 8.93 $ 1,893,160 $ 945,520

8 4.46 $ 945,520 $ 0

Book value at the end of 5 years = $ 4 , 729 , 720

After tax salvage value = 25 % ∗ $ 21 , 200 , 000 − ( 25 % ∗ $ 21,200,000) - $4,729,720 ) * 30%

= $ 5, 128 ,916

Sales table:

Year Unit Sales

1 83,000

2 96,000

3 1,10,000

4 1,05,000

5 86,000

We calculate the free cash flow of the project : ( Check the attachment )

1)

Using NPV formula

NPV = − $ 7 , 328 , 810.58

2)

IRR is the discount rate (R) when the NPV of the project will be equal to zero.

Solving the equation (1) for R we get:

R = 3.93%

So IRR of the project = 3.93%

4 0

3 years ago

A ________ nation is one with unstable leadership, whose policies are driven by ideology rather than by economic or human costs

kirill [66]

The answer to the nation who is one with unstable leadership, whose policies are driven by ideology rather than by economic or human costs and benefits is the rogue nation. Also the rogue nation does not respect other nations and even the other countries in its international actions.

8 0

3 years ago

Assume that you wish to purchase a 20-year bond that has a maturity value of $1,000 and makes semiannual interest payments of $4

Savatey [412]

Answer:

$828.36

Explanation:

As for the information provided,

The value = $1,000

Life = 20 years, since interest is semi annual, effective period = 20 $\times$ $\frac{12}{6}$ = 40 periods.

Semi annual interest = $40

Annual interest = 10%, effective interest rate = 5%

Future Value Interest rate = $40 $\times (\frac{1}{(1+0.05)^1} +\frac{1}{(1+0.05)^2} +\frac{1}{(1+0.05)^3} +\frac{1}{(1+0.05)^4} +\frac{1}{(1+0.05)^5} +\frac{1}{(1+0.05)^6} +\frac{1}{(1+0.05)^7} +.................. + \frac{1}{(1+0.05)^4^0} )$

= $40 $\times$ 17.159 = $686.36

Future Value of Principal = $1,000 $\times \frac{1}{(1 + 0.05)^4^0}$

= $1,000 $\times$ 0.142 = $142

Thus, current price of bond = $686.36 + $142 = $828.36

5 0

3 years ago