Answer: A. Yes
Explanation: The US tax system has built-in stabilizers which help when the economy is down.
Built-in stabilizers are economy policies of government which are triggered automatically to stabilize the economy when it experiencing a downward movement or an unexpected growth in an excessive way without the explicit intervention of the government. An example of this is unemployment insurance.
Answer:
- Project A and C given a budgetary constraint of $15,000.
- Pick all projects if there was not constraint as they all have positive NPVs.
Explanation:
Find the NPVs of the various projects.
Project A:
= Present value of inflows - Cost
= 4,000 / 1.085 + 4,000 / 1.085² + 4,000 / 1.085³ - 7,500
= $2,716.09
Project B:
= 3,000 / 1.085 + 4,000 / 1.085² + 3,000 / 1.085³ - 8,000
= $511.52
Project C:
= 2,500 / 1.085² - 2,000
= $123.64
Seeing as she has only $15,000 to embark on projects, she should pick projects A and C.
Project A should be picked because it has the highest NPV and Project C should be picked because it can still be invested in after Project A given budgetary constraints.
Answer: 2
Explanation: $2.7 million divided by $1.35 million is 2.
Psychologists usually attempt to determine whether or not data supports a hypothesis through the use of statistics which means gathering/collecting all data facts and important information.