Answer:
the firm will have a loss of 6.414,97
Break-even rate = 11.34%
Explanation:
We calcualte the present value of a lump sum to know the present sale value:
Nominal: 154,000
time 5 years
rate 0.13
PV 83,585.03
the current sale price 83,585.03
given a cost of <u> (90,000) </u>
the firm will have a loss of 6.414,97
To break event the present value should be 90,000:
rate = 0.113411345 = 11.34%
Answer:
Net Present Value (NPV) is 506
Explanation:
See document attached. To get the net present value, we make a cash flow in excel.
At moment 0 we have the investment cost , in this case $13,400. From period 1 to period 4, we have different incomes. Then, we calculate the Net cash flow that is the difference between benefits and cost.
To get net present value, we use VNA formula.
=VNA(required rate of return; Net cash flow from moment 1 to moment 4 )+Net cash flow at moment 0
Answer:
B) not transferable to other types of production and can only be used for the product in question
Explanation:
Specific factor of production is a factor of production that is majorly specific and relevant to a particular industry for production, and as such cannot be transferred or moved to another industry. For example, skilled workers in sericulture are specifically trained to serve as a labor factor of production in agriculture or agro-based industry, and would be difficult to be relevant in an automobile industry. Such skilled workers are immobile between both industries.
The potential for risk is higher when considering a foreign market with a politically unstable nation.
What is unstable nation?
Ukraine. They already lost a portion of their country to Russia, Russia is obstructing important ports, and their population is greatly dispersed and in need. There is a lot of corruption, and some individuals want to be more like the rest of Europe while others prefer to be more like Russia. Additionally, they are totally dependent on Russia for their energy needs. Additionally, there is hardly one in Ukraine who genuinely supports the state.
Bosnia is second. Even now, so many years after the conflict, there is still no functioning administration, and the country's divisions are just becoming worse.
Sadly, the UK is probably in third place. No of what kind of agreement is ultimately reached, Brexit is incredibly polarizing. It may cause discontent in Scotland and particularly Northern Ireland.
To study more about unstable nation
brainly.com/question/3999439
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Answer:
Explanation:
If a small percentage increase in the price of a good greatly reduces the quantity demanded for that good, the demand for that good is: Price elastic.
