Answer: the difference between the present value of cash inflows and present value of cash outflows
Explanation:
The value of money is always changing and usually for the worst. Inflation means that $1 today is not worth $1 in a year's time. This poses a risk to investors who want to make profit and can't do that if they do not cater for inflation or the loss of value in their profit estimations. This is where Net Present Value comes in.
NET PRESENT VALUE works by subtracting the present value of Cash Outflows ( investment) from the present value of Cash Inflows (Revenue).
To do this, a DISCOUNT RATE is used which is essentially a value that people believe the currency involved will reduce by going forward. This Discount Rate equates the value of money in the future to it's value now.
Once that is ascertained, a proper comparison can be made to see if the investment is worth it.
Answer:
Explanation:
It happens in the storming stage of group development.
In this stage even though members start to communicate their feelings, they still view themselves as individuals rather than group members. Furthermore, they show resistance to 'leaders' or 'authority' and resist to control.
<span>Most would refer to it as a "Bear" market, as opposed to a "Bull" market when stocks are steadily increasing. </span>
PlastiPharm would want to perform the additional testing because:
- The additional testing helps the company as it strives for perfection in its products and helps avoid future problems by reducing waste (defective parts). (Option C)
- Testing all the parts addresses any questions that customers might have about quality or performance of materials. (Option D)
<h3>
Why do manufacturers carry out testing?</h3>
Rigorous testing is usually carried out by companies to ensure that defects and hazards are detected before the products are sent out into the market.
This way, their liability from product defects is reduced or eliminated completely.
Learn more about testing at;
brainly.com/question/15243255
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When resources are low, businesses know that they can increase their prices because people need them desperately.
