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3 years ago

The price elasticity of demand measures the:

Business

1 answer:

seropon [69]3 years ago

7 0

Answer:

The correct answer is letter "B": magnitude of the response in quantity demanded to a change in price.

Explanation:

Price elasticity of demand is the measure of how quantity demanded for a good or service changes as a result of changes in price. <em>Price elasticity of demand is calculated by dividing the percentage change in quantity demanded by the percentage change in price</em>. If the result is equal or greater than one (1) the good or service is elastic. If the result is lower than one (1), the product is inelastic.

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The internal rate of return (IRR) is that discount rate that equates the present value of the cash outflows (or costs) with the

astra-53 [7]

Answer:

True

Explanation:

The internal rate of return is a measurement utilised in capital planning to appraise the productivity of potential investment. The internal rate of return is a markdown rate that makes the net present worth of all incomes from a specific task equivalent to zero. If the NPV is zero the project is not feasible and if the NPV is zero or positive the investor should invest in that particular project

6 0

2 years ago

You want to construct a portfolio containing equal amounts of U.S. Treasury bills, stock A, and stock B. If the beta of the stoc

7nadin3 [17]

Answer:

beta of stock B = 1.33

Explanation:

the beta of treasury bills is 0

the beta of stock A = 1.46

the beta of stock B = ?

the portfolio contains equal amounts of each investment and its overall beta is 0.93

0.93 = (0 x 1/3) + (1.46 x 1/3) + (B x 1/3)

0.93 = 0 + 0.4867 + 0.333B

0.93 = 0.4867 + 0.333B

0.4433 = 0.333B

B = 0.4433 / 0.333 = 1.33

4 0

2 years ago

On October 1, 2017, Vaughn, Inc., leased a machine from Fell Leasing Company for five years. The lease requires five annual paym

Alisiya [41]

Answer:

Explanation:

1.Amount to be paid Annually to fell leasing Company = $10,000.

Incremental rate of borrowing = 11%

Lease Period = 5 yrs.

2. Value of lease equipment as on 1st October 2017 i.e., date of lease.

= 10,000 * (PVOA) = (11* for 5 years)

=10,000 * 3.6959 (using -PVAF table)

= $ 36,959

Factors are used according to the table of PVAF

3.Lease liability as on 31-12-2017

= 10,000 * PVAD (11 * 4 years) [since 4 years in these)

= 10,000 * 3.44371

= $ 34,437.10

Lease liability as on 31st Dec 2018

= 10,000 * PVAD (11% 3 years) (still 3 yrs left as on 31-12 -2018)

= 10,000 * 2.71252 = $ 27,125.20

7 0

3 years ago

the United States, a three-pound can of coffee costs about $5. If the exchange rate is 0.8 euros per dollar and a three-pound ca

Luda [366]

Answer:

=4/7 cans of Belgium coffee for one can of US coffee

Explanation:

Cost of 1 can of coffee in US = $5

Cost of similar can of coffee in Belgium = EURO 7

Real Exchange Rate (Euro/$) =

Nominal Exchange rate × $\frac{Price\ in\ domestic\ market}{Price\ in\ foreign\ market}$

= 0.8 × 5/7

=4/7 cans of Belgium coffee per can of US coffee

Nominal exchange rate refers to the exchange rate between two countries which is not adjusted for inflation.

Nominal exchange rate when adjusted for inflation is known as real exchange rate.

Real rate = Nominal rate - Inflation rate

3 0

3 years ago

The investment timing decision relates to: Group of answer choices how frequently the cash flows of a project occur. how long th

AveGali [126]

Choosing when to start a project is related to the investment timing decision.

<h3>Is an investment's timing crucial?</h3>

The following are some advantages of market timing strategy:

Market timing is utilized to increase earnings and counteract the dangers involved with small gains.
When it comes to investments, the basic risk-return trade off holds true: the greater the risk, the greater the gain.

<h3>What does the term "investment decision" mean?</h3>

The choice and acquisition of the long-term and short-term assets in which funds will be invested by the organization are referred to as investment decisions.

<h3>What is a timing option for investments?</h3>

The investment-timing option, which is the choice to delay rather than immediately adopt or reject a capital budgeting project, can dramatically boost a project's value when interest rates are unpredictable.

<h3>What is an example of an investment decision?</h3>

Decisions on investments can be made for the long- or short-term.
A capital budgeting decision is another name for a long-term investment choice. Long-term financial commitments are necessary.
A new machine purchase to replace an older one, the purchase of a new fixed asset, the establishment of a new branch, etc. are a few examples.

learn more about investment decision here

<u>brainly.com/question/24246300</u>

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5 0

2 years ago