A period of economic growth (fast growth in GDP) continually ends in inflation with diverse monetary charges. This inflationary increase tends to be unsustainable and ends in a bust (recession). The most important problem of the enterprise cycle is that a recession represents a huge wastage of sources.
Business cycles are the "ups and downs" in financial activity, described in phrases of durations of enlargement or recession. Throughout expansions, the financial system, measured via indicators like jobs, production, and sales, is developing--in actual terms, with the exception of the results of inflation.
The business cycles generated through fluctuations in inventories are referred to as minor or short business cycles. these durations, which generally close about two to 4 years, are now and again additionally called inventory cycles.
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Answer:
Machine A = $ 1.22 million
Machine B = $ 0.70 million
Explanation:
The Equivalent Annual Annuity of the machines is as follows
Machine A = $ 1.22 million
Machine B = $ 0.70 million
Thus the Machine A with a higher Equivalent Annual Annuity of $ 1.22 Million is the better machine.
If the company accepted the better machine which is Machine A, the value of the company increases by $ 3.57 Million (Which is the net total of discounted cash Inflows = Net Present value of Machine A)
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When someone pays back a loan quickly it is called a sudden payoff. This question is question every consumer asks in order to decide if he/she should take a loan or not. The best for your financial state is to pay your loan the sooner you can. The reason is: you save money when you pay a loan off early and y<span>ou are financially stronger when your debt is paid.</span>
The answer is: A. Equity financing
In most cases, companies choose to do this if they want to expand their operation.
Corporations do this by selling the shares of their company to the public or a select group of investors. When the partial ownership is traded with capital, the corporations would have an obligation to share their profit to the shareholders in the form of dividend.