Crusoe's opportunity cost for producing a pound of berries would be 0.4 pounds of fish.
<h3>What is the opportunity cost of the fish?</h3>
This can be found as:
= Change in quantity of fish / Change in quantity of berries
Solving gives:
= (30 - 26) / 52 - 42
= 4 / 10
= 0.4 pounds of fish
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Answer:
The correct answer is Points of interaction.
Explanation:
The term touchpoint refers to all the points of contact between the client and a brand “that imply an interaction with a human need, at a specific time and place” (Risdon, 2013).
If there is an interaction then there is also an exchange of value between the individual and the organization. And professionals in Customer Experience have to understand what kind of value flows. We must ensure that the perceived value is greater than the cost.
On the other hand, the fact that an interaction occurs before a specific human need tells us that we must know what drives it. The need is what marks the nature of the interaction. In other words, the design of an experience changes radically depending on the needs involved.
Answer:
Multiple IRRs:
Said another way, Multiple IRRs occur when a project has more than one <em>internal rate of return.</em> The problem arises where a project has non-normal cash flow (non-conventional cash flow pattern).
Internal rate of return (IRR) is one of the most commonly used capital budgeting tools. Investors make decisions by comparing the IRR of the project under consideration with the <em>hurdle rate</em>. If the IRR is greater than the hurdle rate, the project is accepted, otherwise it is rejected. When there are more than two IRRs, it is not exactly clear which IRR to compare with the hurdle rate.
Hurdle rate is the minimum required rate of return which businesses use as a benchmark to decide whether to invest in a project or not.
<em>So a typical situation which can generate negative cashflows which can in turn lead to multiple IRRs towards the end of the project is where the conditions of investment become adverse towards the end of the project.</em>
Imagine that toward the end of the lifecycle of a project, a forecasted increase external costs such as Interest Rate, influenced by government policies translates to an erosion of the bottom line generated by the business in that year.
Period 0 1 3 3 4 5
Unconventional cash flows ($)-19,000 16,000 16,000 6,000 6,000 -52,000
The series is non-conventional cash-flow pattern, which has two sign changes. This is the range in which the net present value of the non-conventional cash flow series is positive. The multiple IRR problem poses a series problem to analysts because the decision is not obvious.
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Answer:
$15.15
Explanation:
Given:
- D1 = $1.4
- D2 = $1.68
- Growth = 3.4% = 0.034
- Discount rate = 13.7 % = 0.137
As we know that:
- P3= ($1.68 × (1+034)) / (0.137 - 0.034)= $16.86
So, P0:
= $1.40 / 1.137 + $1.68 / 1.1372 + ($1.68+ $16.86)/ 1.1373
= $15.15
Hope it will find you well.
Answer:
The correct answer is letter "D": better match the complexity of the real world.
Explanation:
Economists create models to <em>reflect real-world phenomena through simplified concepts</em>. Those models tend to adopt the most variables possible of economic events to analyze them in-deep, find out why they happen, attempt preventing them or finding a solution for them if feasible.
