Answer:
Point C
<em>Diagram is available online but cannot be imported due to its format</em>
Explanation:
A reduction in the cost of inputs means that suppliers will avail more fish in the market. An increase in supply caused by other factors other than price shifts the supply to the right. A shift of the supply curve outwards or the right makes the equilibrium point to move to capture an increase in supply.
In the diagram, the new equilibrium point will be at point C. The supply will increase due to a reduction in input costs.
Answer:
C. Loss of $800
Explanation:
Given that
Purchase price = 14400
Depreciation = 8000
Selling price = 5600
Thus,
Value of asset after depreciation = Purchase price - Depreciation
= 14400 - 8000
= 6400.
Therefore,
Difference between current value and price sold = value of asset after depreciation - selling price
= 6400 - 5600
= 800
Therefore, there was a loss of $800, since the selling price is less than the value of asset after depreciation.
Answer:
present value; future value
Explanation:
When we express the value of a cash flow or series of cash flows in terms of dollars today, we call it the present value of the investment. This is achieved by discount the future cash flows using the appropriate discounting rate to show the effect of time value of money.
Then, If we express it in terms of dollars in the future, we call it the future value. This is achieved by Compounding the Principle or Present Value using the appropriate compounding rate to show the effect of time value of money
When the firm cuts its dividend ratio, the earnings retention ratio will increase.
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Explanation:
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The retention ratio is the extent of profit held back in the business as held income. It is something contrary to the payout proportion, which gauges the level of benefit delivered out to investors as profits.
The maintenance proportion is additionally called the plowback proportion. Held benefit is the benefit stayed within the instead of paid out to investors as a profit. Held benefit is broadly viewed as the most significant long haul wellspring of fund for a business
.
Answer:
A & C are correct
Explanation:
Payback period is a capital budgeting technique used to determine the number of years it would take a project cash inflows to fully recover the initial amount invested. Since it involves basic addition of subsequent expected cash inflows to determine at what point in time the balance changes from negative to positive ,regular payback period does not take into account the time value of money.
Additionally, payback period determination ignores future cashflows after the balance has changed from negative to positive. Due to this reason, it does not take into account the project's entire life.
