Answer:
class A stocks
Explanation:
in 5 years, class A stock will be worth = $30 x (1 + 6%)⁵ = $40.15
in 5 years, class B stock will be worth = $20 x (1 + 12%)⁵ = $35.25
now we need to determine the present value if each stock:
class A stock present value = $40.15 / (1 + 8%)⁵ = $27.33
class B stock present value = $35.25 / (1 + 8%)⁵ = $23.99
since the present value of class A stock is higher, then the engineers should select that type of stocks.
Answer:
The idea that a higher price means the buying power of income has been reduced.
Explanation:
The income effect is defined as the change in consumption of goods of services after a change of income. If income grows, it is expected that the consumption of goods and services will also grow (this can be measured by the marginal propensity to consume), and viceversa.
If prices rise, the buying power of income will be reduced even if income has grown. If prices rises even more than income, the buying effect of income will fall even more. This two statements can be both explained by the income effect concept.
Answer
(A) true
Explanation:
Stare decisis is a legal doctrine that obligates courts to follow historical cases when making a ruling on a similar case. Stare decisis requires that cases follow the precedents of other similar cases in similar jurisdictions.
Answer:
b. Boots
Explanation:
71.99/4=17.9975 $17.9975 rounded to $18.00
$71.99-$18.00=$53.99
$53.99+$85.75+$24.25+$44.95=$208.94
Answer:
b. achieve a zero net present value for the project.
Explanation:
Break-even point at the level of activity where a project or a business makes no profits or losses. It is the point where revenues match costs. The break-even salvage value of a particular project is the level where the projects return equal to the required rate of return. Therefore, the project does not create losses, nor does it make profits.
In the Net present Value analysis, a project will have positive, zero , or a negative net present value. A zero present value, the required rate of return of the projects match the discount rate, which is the expected rate of return. The break-even salvage value is, therefore, the level where the net present value is zero.
