Answer:
NPV = $-3,383.25
Explanation:
The NPV is the difference between the PV of cash inflows and the PV of cash outflows. A positive NPV implies a good investment decision and a negative figure implies the opposite.
NPV of an investment:
NPV = PV of Cash inflows - PV of cash outflow
PV of cash inflow =
$12,500,
× 1.1535^(-1) + 19,700,
× 1.1535^(-2) + 0× 1.1535^(-3) + 10,400.× 1.1535^(-2) = 31,516.7476
Initial,cost = 34,900
NPV = 31,516.7476 - 34,900 = -3,383.25
NPV = $-3,383.25
Answer:
C. The equilibrium interest rate will rise.
Explanation:
According to the question, When the economy made the transition from the short run equilibrium to the long run equilibrium than there is a rise in the supply that results in rise in the nominal wages but the real wage would remain unchanged or constant
Therefore the option c is correct and the rest of the options are wrong
Answer:
False
Explanation:
The large heterogeneous market is a market structure where diverse commodities and services are available to the customers. Overall, large heterogeneous markets are known as 'Mass markets' or ' Total product market'. This market satisfies customer needs due to mass production of distinctive goods. In the large heterogeneous market, customers have different perspectives, wants, choices and nature etc.
Answer:
The correct option is A,can be converted into cash with low transaction costs.
Explanation:
Secondary reserves are the funds invested by bank in short term highly liquid investments,in essence can be converted to cash quickly at very low transaction costs in order to settle unexpected obligations.
Secondary reserves refer to the extra reserves maintained by the banks over and above the minimum regulatory reserve requirement mandated on banks by the Federal Reserve System.The Federal Reserve System as it is popularly known is the central bank in the US.
Answer:
Current break even units = $17,125
New break even point in units = $21,200
Explanation:
The computation of current break-even point in units and comparison with break-even point in units is shown below:-
Current break even units = Fixed cost ÷ Contribution margin per unit
= $411,000 ÷ ($60 - $36)
= $411,000 ÷ $24
= $17,125
New break even point in units = Fixed cost ÷ Contribution margin per unit
= ($411,000 + $34,200) ÷ ($57 - $36)
= $445,200 ÷ $21
= $21,200
