Answer:
increase in output, but not in the equilibrium price of the product.
Explanation:
The options weren't provided. The full question can be found here - https://www.chegg.com/homework-help/questions-and-answers/perfectly-competitive-industry-x-constant-costs-product-inferior-good-industry-currently-l-q39354625
An inferior good is a good whose demand increases when income falls and whose demand falls when income rises.
When average income falls, the demand for good X rises. The level of output increases as a result of the rise in demand but price doesn't change.
I hope my answer helps you.
Depreciation Expense is a temporary account since it is an income statement account.
Therefore, the answer is
b . False
Answer:The three main types of merger are horizontal mergers which increase market share, vertical mergers which exploit existing synergies and concentric mergers which expand the product offering.
Explanation:
Answer:
MIRR = 16.6%
Explanation:
We have the formula to calculate the MIRR of the project:
+) ![MIRR =\sqrt[n]{\frac{FV}{PV} } - 1](https://tex.z-dn.net/?f=MIRR%20%3D%5Csqrt%5Bn%5D%7B%5Cfrac%7BFV%7D%7BPV%7D%20%7D%20-%201)
In which:
- FV - terminal value, the future value of net cash inflow which is assumed to be re-invested at the rate of cost of capital = WACC = 12.25%
- PV - the present value of the net cash outflows during the investment at the rate of cost of capital = WACC
- n: numbers of years (n=4)
The future value of net cash inflow Year i = Cash inflow × (1 + Cost of capital)^(number of years reinvested)
= Cash inflow × 1.1225^(n - i)
+)
= $424.327
+)
= $403.202
+)
= $381.65
+)
= $360
<em>=> Terminal Value = 424.327 + 403.202 + 381.65 + 360 = $1569.179</em>
<em />
Present Value Year i = 
The project requires the initial investment = - $850 and there are no cash outflows during 4 years of the project
<em>=> PV of the project = PV Year 0 = </em>
<em> = 850</em>
=> MIRR =
= 0.166 = 16.6%
Answer:
2 year yield 4 years from now = 11.0%
Explanation:
2 year yield 4 years from now = [ ( 1 + 0.0795)^6 / ( 1 + 0.058)4]1/2 - 1
2 year yield 4 years from now = [ 1.50073 / 1.286466]1/2 - 1
2 year yield 4 years from now = 1.011 - 1
2 year yield 4 years from now = 11.0%