Answer:
Payback =1.53 years
Explanation:
The annual cash-flow figure that is to be used in this calculation should not include depreciation as depreciation is a non-cash item. Net operating income from the project is $115,000 and to get to annual cash-flows, depreciation should be added back.
Annual cash-flows for each of the 6 years would therefore be:
The scrap value would be expected at the end of the project i.e end of year 6.
Year Cash-flow Balance
0 (225,000) (225,000)
1 147,000 (78,000)
2 147,000 69,000
By end of year 2, the company has already recovered the $225,000 initial investment as seen through the positive cumulative balance
Payback = Years With Negative Cumulative Cash-flow Balance + 
Answer:
Defensive Portfolio
Explanation:
Defensive portfolio consist of stocks that are protected from the market movement forces such that they perform acceptably well both during good and bad economic times, much unlike cyclical stocks. The companies within the portfolio are those that manufacture and produce essential goods and services and therefore will also thrive when the economy is in a difficult state.
Many defensive portfolio companies offer dividends with the effect of reducing capital losses.
Answer:
B) antitrust laws
Explanation:
Antitrust laws refer to the laws with respect to the competition and it is established by the U.S government. The motive of this to secure the consumers from that business practices who are dealing in predatory and if this law does not exist then the consumers would not gain i.e from the competition arise in the market place
Therefore according to the given situation, when the government passes the law against so this reflect the antitrust laws
Answer:
E. above; surplus; downward
Explanation:
When the price is <u>above</u> the equilibrium price, we would expect there to be a <u>Surplus</u>, causing the market to put <u>downward</u> pressure on the price until it went back to the equilibrium price.
Equilibrium price is the price at which demand and supply of goods are equal. If we plot in graph then we can see demand and supply curve intersect at the equilibrium price. In case price is above the equilibrium price then quantity supplied will be higher than quantity demanded then there will be surplus in the market, which create downward presure on the price as price was higher and consumer will purchase the product at low price. Therefore, both supply and demand forces price to be back at equilibrium.
