<span>An economist's measurement of profit differs from an accountant's in that </span>accountants do not always include all of the opportunity costs when calculating total production costs. When the economist are trying to determine opportunity costs they account for all of production costs. Accounts won't always account for them and their affects on the business statements.
The answer to your question is yes, TRUE.
The correct answer to fill in
the blank is:
Charles is using the<u> “Self-Reinforcement”</u>
strategy.
<span>Self reinforcement is a type of
self conditioning method which serves to reinforce the link between a certain
stimuli and response through reward. In this case when Charles loses weight
(stimuli), he is going to buy himself a new shirt (response / reward).</span>
Answer:
A. NPV for A= $61,658.06
NPV for B = $25,006.15
B. 1.36
1.17
Project A
Explanation:
Net present value is the present value of after tax cash flows from an investment less the amount invested.
NPV can be calcuated using a financial calculator
for project A :
Cash flow in
Year 0 = $(172,325)
Year 1 41,000
Year 2 47,000
Year 3 85,295
Year 4 86,400
Year 5 56,000
I = 10%
NPV = $61,658.06
for project B
year 0 = $ (145,960)
Cash flow in
Year 1 27,000
Year 2 52,000
Year 3 50,000
Year 4 71,000
Year 5 28,000
I = 10%
NPV = $25,006.15
profitability index = 1 + NPV / Initial investment
for project A, PI = $61,658.06 / 172,325 = 1.36
For project B, PI = $25,006.15 / 145,960 = 1.17
The project with the greater NPV and PI should be chosen. this is project A.
To find the NPV using a financial calculator:
1. Input the cash flow values by pressing the CF button. After inputting the value, press enter and the arrow facing a downward direction.
2. after inputting all the cash flows, press the NPV button, input the value for I, press enter and the arrow facing a downward direction.
3. Press compute