Answer:
The correct answer is option e.
Explanation:
In a perfectly competitive market, there are no limitations on the entry and exit of firms. If the existing firms have positive economic profits, this attracts other potential firms to join the market. In case of losses the firms incurring losses exit the market.
If Dirk’s Doughnuts is operating in a perfectly competitive market and is incurring economic losses, firms having losses will exit the market.
This will cause the market supply to decrease. As the supply curve shifts to the left, the price of the product will increase. This will cause profits to increase. The firms will operate at zero economic profits.
Answer:
The correct answer is letter "C": is an assumption that economists make to have a useful model for how decisions are made.
Explanation:
Rational Behavior guides the decision-making process towards choices that maximize individuals' benefits. Most economic theories assume that any individual taking part in action or activity is behaving rationally. Given the choice, people would choose something that increases their satisfaction.
Answer:
NPV = $1.49 million
Explanation:
<em>The NPV is the difference between the PV of cash inflows and the PV of cash outflows. A positive NPV implies a good investment decision and a negative figure implies the opposite. </em>
<em>NPV of an investment: </em>
NPV = PV of Cash inflows - PV of cash outflow
But we will need to work out the discount rate to be used for discounting the cash flows. Hence, we need to determine the cost of capital as follows:
Step 1: After-tax cost of debt
After tax cost of debt = pre-tax cost of debt × (1-tax rate rate)
= 9%× (1--0.3)=6.3%
Step 2 : Weighted Average cost of capital (WACC)
WACC=( 0.25×6.3%) + (0.75× 13%) =11.325
%
Step 3:Net Present Value (NPV)
PV of cash inflow= (1- (1.11325^-5)/0.11325)× 13.5 = 49.49 million
Initial cost = $48 million
NPV = 49.49 million - $48 million =$1.49 million
NPV = $1.49 million
Current asset under Balance Sheet. :)
Answer:
a record.
Explanation:
Uniform Electronic Transactions Act (UETA) is an act in the United States that was proposed by the National Conference of Commissioners on Uniform State Laws (NCCUSL) and was created in order to make consistent the laws surrounding the retention of paper records as well as the validity of electronic signatures. Under this act the "information that is inscribed on a tangible medium or that is stored in an electronic or other medium and is retrievable in perceivable form" is known as a record.
