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4 years ago

Why is investing important in an economy?

Business

1 answer:

zheka24 [161]4 years ago

8 0

Investing is important to make the cash flow of the economy.

Explanation:

The most vital component of a growing economy is the cash flow.

If the cash is not flowing from one business and one hand to another the economy is bogged down and then a slowdown occurs all across with a ripple effect.

Investments constantly bring capital in for the companies that are then able to spend that investment and to bring more and more money into the cash flow of the economy thus strengthening the circulation and creating growth.

This growth is what ultimately results in the growth of the whole economy.

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The federal deficit has reached into the trillions of dollars. a. True b. False

Anastaziya [24]

Very true. At the rate we are spending, it will be whatever number comes after trillion.

7 0

4 years ago

EBay's customers enrich the Web site by giving their reviews after every purchase. These reviews are used by buyers to evaluate

Tatiana [17]

The options are:

A) reverse engineeringB) value chain extensionC) focused strategyD) niche market

Answer:

Value chain extension.

Explanation:

Value chain extension are the steps a company takes to extend the reach of their products to customers, and multiple relationships are built that impacts the bottom line.

In this instance eBay customers write a review after each purchase and the reviews are now used by buyers to evaluate the seller's.

EBay in turn gives special privileges. This is eBay creating an extended value chain in delivering it's products to customers.

4 0

3 years ago

A project requires the purchase of $587,000 of equipment that will be depreciated straight-line to a zero book value over the fo

AlekseyPX

Answer:

The cash inflows in Year 2 is: $6,750

The present value of the project in Year 2 is: $5,286 (ignored the depreciation)

The Net Present Value in Year 2 is: $-642,112 (required return rate is 13%)

Explanation: (See the attached table also)

1. Initial investment: $587,000

2. Year 1:

- Sales: $625,000

- Cash expense: $487,000

- Money to support project: $625,000 x 12% = $75,000

- Tax to pay: $625,000 x 21% = $131,250

=> Cash inflow in Year 1:

625,000 - 487,000- 75,000 - 131,250 = - 68,250

Present value: -68,250 : (1+0.13) = -60,398

NPV: -60,398 - 587,000 = - 647,398

Year 2:

- Capital from year 1: $75,000

- Sales: $625,000

- Cash expense: $487,000

- Money to support project: $625,000 x 12% = $75,000

- Tax to pay: $625,000 x 21% = $131,250

=> Cash inflow in Year 2:

75,000 + 625,000 - 487,000- 75,000 - 131,250 = 6,750

Present value: 6,750 : [(1+0.13)^2] = 5,286

NPV year 2 = NPV Year 1 + PV Year 2 = -647,398 + 5,286 = -641, 112

4 0

3 years ago

After identifying various market segments that her company could pursue, Lisa evaluated each segmentâs attractiveness based on s

OleMash [197]

Answer:

D) target marketing.

Explanation:

Target marketing -

It is the group of customers in the business service market , where the business aims for marketing resources and efforts .

It is a type of subset of the total market for a service and goods .

The main component of the target marketing is to evaluate the potential target .

hence , from the information of the question , Lisa is involved in D) target marketing .

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3 years ago

Suppose the only way you could save five innocent people was by killing one of them. would you do it? suppose the only way you c

pantera1 [17]

This is more of an ethics question and up to each individuals beliefs, but I'll try my best to answer it for you. "I would not kill the one innocent person to save five other people because no one's life is greater than another's. The five people would die if I hadn't intervened at all and that one death would be on me. The same would apply to the second scenario, I would not kill the five people to save one."

6 0

3 years ago