The first Year of your business’s operations
Answer:
wages and prices are often inflexible in the downward direction.
Explanation:
John Maynard Keynes was a British economist born on the 5th of June, 1883 in Cambridge, England. He was famous for his brilliant ideas on government economic policy and macroeconomics which is known as the Keynesian theory. He later died on the 23rd of April, 1946 in Sussex, England.
Keynes believed that wages and prices are often inflexible in the downward direction.
In Economics, when there are monetary disturbances and a great level of macroeconomic factors in the economy of a particular country, this usually result in prices of goods and services being sticky.
Let
x = minutes used for jogging
y = minutes used for handball
z = minutes used for cycling
Th total time spent is 1 hour (60 minutes), therefore
x + y + z = 60
Because Mike jogs as long as he cycles, therefore
x = z
Therefore
2x + y = 60
or
y = 60 - 2x (1)
Jogging consumes 10 calories/min, handball consumes 9 calories/min and cycling consumes 12 calories/min.
The calories consumed in 60 minutes is 580, therefore
10 x + 9y + 12z = 580
Because x = z,
22x + 9y = 580 (2)
Substitute (1) into (2).
22x + 9(60 - 2x) = 580
22x + 540 - 18x = 580
4x = 40
x = 10
y = 60 - 2x = 40
z = x = 10
Answer:
10 minutes of jogging
40 minutes of handball
10 minutes of cycling.
Answer:
The payback period is more than 5 years
Explanation:
Net present value is the Net value of all cash inflows and outflows in present value term. All the cash flows are discounted using a required rate of return.
Year Cash flow PV factor Present Value
0 ($490,000) 1 ($490,000)
1 $40,000 0.909 $36,360
2 $10,000 0.826 $8,260
3 $120,000 0.751 $90,120
4 $90,000 0.683 $61,470
5 $180,000 0.621 <u> $111,780 </u>
Net Present Value ($182,010)
NPV of this Investment is negative so, it is not acceptable.
Payback period
Total Net cash inflow of the investment is $440,000 and Initial investment is $490,000. This investment will take more than 5 years to payback the initial investment.
