Answer:
NPV = $100.4002 rounded off to $100.40
Explanation:
The NPV or net present value is the present value of a project or business's cash flows which are calculated by deducting the cash outflows from the cash inflows. NPV is a tool or criteria used for investment and project appraisal. The NPV can be calculated as follows,
NPV = CF1 / (1+r) + CF2 / (1+r)^2 + .... + CFn / (1+r)^n - Initial Outlay
Where,
- CF1, CF2, ... represents the cash flows in Year 1, Year 2 and so on.
- r represents the discount rate
NPV = 660 / (1+0.075) + [ -85 / (1+0.075)^2] - 440
NPV = $100.4002 rounded off to $100.40
Answer: a. benefits Boxlandian consumers by $672 and harms Boxlandian producers by $598.50.
Explanation:
Equilibrium price will be at level where quantity demanded equals quantity supplied.
200 − 2P = -60 + 3P
200+60 = 5P
5P = 260
P = $52
Equilibrium Quantity Demanded = 200 − 2P = 200 - 2 * 52 = 96 units
In a no-trade situation the demand in Boxland is 96 units at a price of $52. If they were to buy at the world price of $45, they would benefit;
= (96 * 52) - (96 * 45)
= 4,992 - 4,320
= $672
Producers however would produce the following at a price of $45;
Q S = -60 + 3P
= -60 + 3(45)
= 75 units
They would be supplying less units and be hurt.
Answer:
E) She may take a 3 percent discount if she pays the invoice within ten days.
Explanation:
Net30: net/30 is a type of trade credit where the buyer must pay within 30 days of the purchase. Traders usually offer discounts so that buyer pays the amount earlier than the time of payment.
Example: Notation 3/10 on the invoice means the customer will be given 3% discount if he/she pays within 10 days.
Answer:
Hotel A, Indianapolis
The number of rooms that the hotel should sell for this particular night to minimize their costs is:
= 196 rooms.
Explanation:
a) Data and Calculations:
Hotel rooms available = 180
Expected percentage of reservations that will actually show up = 92%
Cost per empty room = $175
Cost per room for overbooking and placing extra guests in other accommodations = $375
The number of rooms to sell this particular night to minimize costs = 180/92% = 196 rooms
Booking 196 rooms will ensure that the maximum rooms are fully taken by the reservationists and the hotel can only incur a probable cost of $375 per overbooked guest.
Answer:
This is a Unilateral contract
Explanation:
Mary has made a promise to pay the person who performs the act of returning Sparky therefore this is an example of a unilateral contract.
A unilateral contract is a type of contract agreement where an offeror such as Mary makes a promise to pay after the performance of a specified act, which is to return her dog Sparky
