What is an economy:
The wealth and resources of a country or region, especially in terms of the production and consumption of goods and services.
How does it work:
The three principles that describe how the economy as a whole works are: (1) a country's standard of living depends on its ability to produce goods and services; (2) prices rise when the government prints too much money; and (3) society faces a short-run tradeoff between inflation and unemployment.
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<span>A firm obeys the least-cost rule by equating the ratios of marginal physical product to the factor price.
The marginal physical product refers to the adjustment in the quantity of aggregate item yields that outcomes from an adjustment in an item input.The marginal physical product identifies with work increments and coming about profitability increments, in economics.
Factor price refers to the cost at which the methods for creation (that is, arrive, work, capital and sometime business enterprise) are sold.</span>
For the first investment the solution as follows
Annual depreciation
600,000÷6 years=100,000
Net annual cash flows
100,000+155,000=255,000
Present value
255,000×4.11141+16,600×0.50663
=1,056,819.608
Net present value
1,056,819.608−600,000=456,819.608
For the second investment the solution as follows
Annual depreciation
390,000÷8 years=48,750
Net annual cash flows
48,750+60,000=108,750
Present value
108,750×4.96764+24,500×0.40388
=550,125.91
Net present value
550,125.91−390,000=160,125.91
Answer:
The correct answer is (A)
Explanation:
Managers are frequently called upon to make decisions. Making a decision is critically important for the success of a business; that is why it is crucial to evaluate the choices in detail. Examining the pro and cons of a decision leads towards a better conclusion. Decision-making process involves various steps, such as identifying, gathering information, choosing from alternatives, implementing the decision, and lastly to analyse the results.
The four general accounting principles from the provided options are going concern principle, time period principle, full disclosure principle and revenue recognition principle.
<h3>What are accounting principles?</h3>
Accounting principles are the rules and guidelines which guide the accounting users in preparing and finalizing the accounting reports.
The principles of accounting are as follows:
- Going concern principle is a concept that treat a business firm to have an indefinite life.
- Time period principle states that the activities performed by an entity should be bifurcated into various periods.
- Full disclosure principle signifies that each and every material information must be reported in the accounting statements and none of the information should be hide out.
- Revenue Recognition principle is the one where an income is recorded when it is actually earned and the expense is recorded when it is charged. The cash receipt and cash payment would be irrelevant in this concept.
Therefore, the principles related to accounting process has been explained as above.
Learn more about the accounting principles in the related link:
brainly.com/question/16874947
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