The statement " It eliminates the inflows of cash earned following the payback period and time value of money" is the disadvantage of the payback method
The payback period is the period thats tells the time period in which the initial investment that was made should be recovered.
It is to be measured in years normally.
For finding the disadvantage, we need to find out the following information related payback period
- It is easy to calculate
- The cash flows earned after the payback period should not be used
- There is no requirement to determine the present value factor for measuring the payback period.
- Also, it does not use for distinct cheap projects from lower ones
So this is the reason this method ignored the times value of money
Therefore, we can conclude that, the correct option is b.
Learn more about the payback method here: brainly.com/question/16255939
the main reason the industrial revolution first occurred in Britain was that in Britain the price of coal was low relative to labor. Thus, making everyone want to own and make products using the steam engine which ultimately created the first industrial revolution.
The Industrial Revolution, which took place between roughly 1760 and between 1820 and 1840, was the adoption of new manufacturing techniques in Great Britain, continental Europe, and the United States. This transition encompassed the switch from manual to mechanical production methods, the invention of new ways of producing chemicals and the iron, the expansion of steam and water power, the creation of machine tools, and the growth of the mechanized factory system.
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Answer: Option (c) is correct.
Explanation:
Correct Option - An increase in the state of technology.
The aggregate supply curve in the long run is a vertical line and parallel to the y-axis. |t is perfectly inelastic in the long run.
Now, if there is increase in the money supply in the economy then this will increase the aggregate demand in the short run. Hence, aggregate demand curve shift rightwards, as a result real GDP increases in the short run and move beyond the potential level of real GDP.
Also, there is a creation of inflationary gap in the economy, as a result real GDP shifts back to its initial position at potential real GDP. So, there is no increase real GDP in the long run.
Similarly, decrease in interest rates and an increase in government spending will also results in inflationary gap in the economy. Therefore, doesn't affect the real GDP in the long run.
But an increase in the state of technology is capable of increasing real GDP in the long run. Improvement in the state of technology will shift the long run aggregate supply curve rightwards, as result there is an increase in potential GDP in the long run.
Answer:
transactions
Explanation:
the accountant analyzes transactions before financial information is represented in reports
