Answer: <em>Option (d) is the correct answer.</em>
Ben view the investment by government as a way to jump start a weak economy, i.e. investment by government will allow industries to hire new employees or workforce in order to meet production demand. Thereby increasing government spending through investing in construction of road and bridge, Ben assumes that the state will intervene in market to help revive a weak economy.
Answer:
Real rate of returns are lower than nominal rates of return, therefore, using a real discount rate would overestimate a project's net present value. This could result in unprofitable projects being accepted because the NPV was erroneously calculated. If you want to use a real discount rate, you must first convert cash flows to real dollars.
For example, nominal discount rate is 10%, inflation rate is 5%, real discount rate is 5%.
Initial outlay $100
NCF year 1 = $40
NCF year 2 = $40
NCF year 3 = $40
Using the real discount rate, the NPV = $8.93
Using the nominal discount rate, the NPV = -$0.53
Answer:
b. $1750
Explanation:
Provided that
Sale of the company = $87,500
Credit terms = 2% if payment is received within 10 days and the prescribed time limit is 30 days
The amount of the sales discount would be
= Sale of the company × discount percentage
= $87,500 × 2%
= $1,750
We simply multiplied the sale of the company with the discount percentage so that the sales discount could come
Umhow are we supposed to help u with this?
Answer:
B. equity financing
Explanation:
Equity financing involves giving up part of the company because it will have to be shared with the partners of the organization who are usually the investors.
