Answer:
Gross National Product (GNP)
Explanation:
According to Investopedia, "the Gross National Product is the value of a nation's finished domestic goods and services during a specific time period".
*Note that the GNP should NOT be confused with the GDP (Gross Domestic Product). The GDP only accounts for the value of goods and services produced within a nation's borders, while the GNP also adds the value of services produced by that country's employees and companies in other nations.
Answer:
$850
Explanation:
Data provided in the question:
Initial investment = $15,000
Expected annual net cash flows over four years, R = $5,000
Return on the investment = 10% = 0.10
Present value of an annuity factor for 10% and 4 periods, PVAF = 3.1699
The present value of $1 factor for 10% and 4 periods = 0.6830
Now,
Net present value = [ R × PVAF ] - Initial investment
= [ $5,000 × 3.1699 ] - $ 15,000
= $15,849.50 - $ 15000
= $849.50 ≈ $850
Answer:
IRR is 18.25%
Annual amount is -$0.225 which closest to zero dollar,because at irr the investment return is zero
Explanation:
The formula for IRR in excel is :irr(values)
The formula can be applied to the cash outflow of $4,000 and cash inflow of $9,250 in five years' time as follows
Years Cash flow
0 -$4,000
1 $0
2 $0
3 $0
4 $0
5 $9,250
irr(-$4000 to $9,250)
irr is 18.25%
The amount of receivable each year can be computed using pmt formula in excel
=pmt(rate,nper,-pv,fv)
rate is the irr of 18.25%
pv is -$4000
fv is the future amount 0f $9,250
=pmt(18.25%,5,-4000,9250)
pmt=-$0.225 which closest to zero amount
Answer:
consumer surplus = $3.5
producer surplus = $2
Explanation:
Consumer surplus is the difference between the willingness to pay of a consumer and the price of the good.
Consumer surplus = willingness to pay – price of the good
Jeff's consumer surplus = $7 - $6 = $1
Samir's consumer surplus = $8.50 - $6 = $2.50
total consumer surplus = $1 + $2.50 = $3.50
Producer surplus is the difference between the price of a good and the least price the seller is willing to sell the product
Producer surplus = price – least price the seller is willing to accept
Manufacturer 1's producer surplus = $6 - $4.5 = $1.50
Manufacturer 2's producer surplus = $6 - $5.50 = $0.50
total producer surplus = $1.50 + 0.50 = $2
Answer:
Dollar voting is an analogy that refers to the theoretical impact of consumer choice on producers' actions by means of the flow of consumer payments to producers for their goods and services.
