Take the $550 per month for monthly income as after ten years it would reach the same amount just in a longer period of time
-$3,080.
Using the CF function of your financial calculator, input the initial investment as a cash outflow (negative) of $11,400, then each of the cash inflows (positive) as $2,250 for each of the first 5 years and $1,500 for the sixth year. Hit the NPV button and input the required rate of return as 14.4% then the NPV will be -$3,080.
Answer:
b) The price of the product or service being offered
Explanation:
Value proposition is a clear and concise statement from a company or producer of goods and services to its potential customers on the values that buyers of a product or service will get from the use of such products.
There are basically three elements of a good value proposition
1. The company must identify the target audience or market who are to receive the value being created.
2. The attraction or selling point of the company product compared to that of competitors
3. The way the product or service will solve the need of the potential customers
Based on the fixed costs of the Rocky Mountain Bottling Company, the contribution margin per unit is $0.40 per unit
<h3>How is the contribution margin found?</h3>
First, find the variable costs:
= 300,000 + (250,000 - 70,000)
= $480,000
The contribution margin per unit is:
= (Sales - variable costs) / number of units
= (800,000 - 480,000) / 800,000
= $0.40 per unit
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<span>In the basic keynesian model, a decline in autonomous spending reduces short-run equilibrium output.The increase in national income is equal to the primary investment (autonomous) plus a chain of secondary consumption spending. According to Keynes, the root cause of unemployment and depression is inadequate investment, and a consequent low level of aggregate demand.</span>
