Answer:
2 years
Explanation:
Payback period is the amount of time it takes to recover the amount invested in a project from its cumulative cash flows
In the first year, -$85,000 + $30,000 = -$55,000 is recovered
In the second year, -$55,000 + $55,000 = 0
The total amount invested is recovered in the second year
Answer:
A. a movement downward along the supply curve.
Explanation:
According to the law of supply, the higher the price, the higher the quantity supplied and the lower the price, the lower the quantity supplied.
This accounts for why the supply curve is positively sloped.
A change in price of a good leads to a movement along the supply curve and not a shift of the supply curve.
Please check the attached image for a graph showing the supply curve
<span>The price elasticity of demand would be -2. When you divide the change in quantity demanded (-20%) by the change in price (10%), as is required to obtain the price elasticity of demand, you get this result.</span>
Answer:
cash a/c .......Dr rs.20000
To, capital a/c rs.20000
Answer:
After-tax cost of debt = 73.06%
Explanation:
Nper = 20*2 = 40
Pmt = 40
Pv = -847.87
Fv = 1000
Tax rate = 25%
<em>Firm's after-tax cost of debt is calculated as follow:</em>
After-tax cost of debt = RATE(Nper, Pmt, Pv, Fv) * (1-tax rate)
After-tax cost of debt = (RATE(20*2,40,-894.87,1000)*2)*(1-25%)
After-tax cost of debt = (0.048709771*2) * 0.75
After-tax cost of debt = 0.097419542 * 0.75
After-tax cost of debt = 0.0730646565
After-tax cost of debt = 73.06%
