I believe that answer is B Variable cost
Scarcity refers to lack of desired quantity of something. The scarcity in economics rise due to the fact that humans have unlimited resources. This results in a decision to be made on how should the resources be allocated between various possible alternatives. The branch of economics helps answer the question of effectively allocating scarce resources for meeting the unending human demands. It helps answer the questions of what to produce, how to produce and for whom to produce.
Answer:
IRR = 27.46%
Explanation:
Initial investment = $32,500
15 annual cash inflows of $7,000 + ($32,500 / 15) = $9,166.67
the required rate of return is used to calculate NPV, not IRR, so we will not use it.
In order to calculate the IRR, you have to use a financial calculator or an Excel spreadsheet and the IRR function:
IRR = 27.46%
