Answer:
The correct answer is letter "C": among the factors that are responsible for market risk.
Explanation:
Market risk is a chance that the value of an investment will decrease due to a factor that affects all investments across the market. Investors always assume there could be a certain level of risk. There is always a chance that their investments will not meet their expected returns.
Examples of factors of market risk are <em>changes in equity prices, fluctuations in the interest rate, changes in foreign exchange rates, inflation </em>or <em>a recession</em>.
Answer:
Items a) and b)
a) items used currently in the production of goods to be sold items
b) held for resale items currently in production for future
Explanation:
Inventory consists of current assets to be used in production of final goods or are the ones which are final goods and held for sale.
In the given case also, statement a includes raw materials, which are used to make the final good to be sold, which is a part of inventory.
Further, statement b includes work in production or final goods which are currently in production but would be resold.
The items which are kept for their use as like machinery or furniture or which shall be disposed are not inventory but are in fixed assets category.
Answer: In this particular case we can reason that this scenario represents <em><u>monopolistic-ally competitive market.</u></em>
Both coffee house are offering a similar product and commodity, with only little differentiation in their design.
i.e. The Starfire Coffee chain provided consumer with peppermint coffee and the experience of sitting in front of a roaring fire, chatting with friends.
whereas Reindeer provided consumer with a mug of hot cocoa and a similar community experience.
Answer:
The net present value of this investment is $989.32
Explanation:
The Net Present Value is calculated by taking the Present Day (discounted) value of all future net cash flows based on the business cost of capital and subtracting the initial cost of investment.
Input Value Cash flow
CF0 ($21,705)
CF1 $6,700
CF2 $6,700
CF3 $6,700
CF4 $6,700
Cost of Capital = 7%
Input the values in a financial calculator we get the result;
Net present value = $989.3154
= $989.32
Conclusion :
The net present value of this investment is $989.32
