Answer:
$1,666,667
Explanation:
Let assume that the annual growth rate is Zero
PV = ($110,000)/(.05)
= $2,200,000
NPV= $2,200,000 - $2,000,000
= $200,000
Let assume that the benefit growth rate is 2%
PV = ($110,000)/(.05-.02)
=$110,000/0.03
= $3,666,667
NPV=
$3,666,667 - $2,000,000
= $1,666,667
Answer:
B. The short-run trade-off between uemployment and inflation will be worse than before as the economy moves to a higher short-run Phillips curve.
Explanation:
What will happen to the short-run Phillips curve? The short-run trade-off between unemployment and inflation will be worse than before as the economy moves to a higher short-run Phillips curve.The short-run Phillips curve shows that in the short-term there is a tradeoff between inflation and unemployment
Answer:
7,000 economic loss
Explanation:
accounting profit - opportunity cost = economic profit
50,000 company earnings - 35,000 - 22,000 opportunity cost
7,000 economic loss
She currently is putting his labor and capital to receive 50,000
if she offers his labor to another company it will receive 35,000
if she offers his capital to another project it will yield 22,000
The total opportunity cost is 57,000
She is losing by keeping his company. It should take the job and, put his capital somewhere else.
Answer:
Advertising.
Explanation:
Advertising increases costs of product. Customers have to pay high price for the products heavily advertised. Companies do not forgo their profits.
Answer:
$5,775
Explanation:
The computation of the interest payment is shown below:
= Note payable amount × rate of interest × number of months ÷ total number of months in a year
= $110,000 × 9% × 7 months ÷ 12 months
= $5,775
We simply multiplied with the note payable , interest rate, and the given number of months to find out the interest expense
And, the seven months is calculated from June 1, 2013 to December 31, 2013