Answer:
<em>1</em><em>. </em><em>Economies of scale.</em>
<em>2</em><em>. </em><em>Capital requirements</em><em>.</em>
<em>3</em><em>. </em><em>Product differentiation. </em>
Keeping the appropriate cash flow in the cash flow register, using a financial calculator, NPV should be calculated for taking the decision.
Answer: According to the NPV calculated, Chen should buy a new machine.
<u>Explanation:</u>
Cash outflow = $40000
Increase in annual after-tax cash flows : CF = $9000
Place the cash flow on a time line:
0 1 2 10
I 10 I I . . . I
-110000 19000 19000 19000
With a financial calculator, input the appropriate cash flow into the cash flow register, input I/YR = 10, and then solve for NPV. The answer for NPV is $6746.78.
Thus, Chen should buy a new machine.
Answer:
making loans to the government
Answer and Explanation:
The ethical issues that occurs in the case when a corporate insider wants to purchase or sells in the firm where an individual works are as follows:
1. The information could be misuse
2. It would become unfair for the investors
3. The trust could be broke also it would create the discrimination with the other investors
4. The insider trading lowers the size of the market that ultimately decrease the volatility of the market
Answer:
<u>Opportunity cost </u>
Explanation:
Suppose that a university decides to spend $ 1 milion to upgrade personal computers and scientific equipment for faculty rather than spend $ million to expand parking for students . This example illustrates<em><u> opportunity costs.</u></em>
<em>Opportunity cost refers to the cost shifting one opportunity to another opportunity or availing one opportunity in terms of another.</em>
Formula of Opportunity cost is :
<u>Opportunity cost</u> = Total Revenue - Economic Profit
Or
<u>Opportunity cost </u> = What one sacrifice / What one gain
In Opportunity cost we chose one thing or option over the cost of another thing or option. Opportunity cost places a important role in economic theory .
As it tell us that people can choose only one thing not the both things at the sane time.
